Examining the Impact of Strategic Information Systems on Innovation

This report examines the significant impact of strategic information systems (SIS) on organizational innovation and business strategy. It explores the theoretical background and practical applications of SIS, emphasizing its role in achieving competitive advantages, fostering innovation, and enhancing organizational performance. The report discusses how SIS supports strategic planning, enables the development of new products, and facilitates efficient business processes. It also investigates the relationship between SIS and organizational innovation, including exploratory and exploitative innovation, and how SIS influences strategic responsiveness and the ability to adapt to environmental changes. The study highlights the importance of control variables and the relationship between innovation and information systems, providing valuable insights for businesses seeking to leverage technology for growth and success. The report concludes by emphasizing the role of SIS in creating a competitive advantage and encouraging employee motivation and potential, making it a crucial resource for students on Desklib.

The Influence of Strategic Information System on Organizational Innovation

1.0 Introduction
The integration of the information system or information technology into the strategy of business have
been observed and studied extensively by the professionals and academics for years. There is technical
research concerning the strategic information system which estates the studies in the theoretical
background. The main reason was to focus on illuminating the influence of Strategic information systems
to the process and content of the business strategy. The academic literature repeats that strategic
information systems and the use of an information system may support the phase or stage of strategic
planning to gain and maintain a competitive advantage towards organizational innovation. Information
technology may add the creation of benefits and value through the use of information system that may
occur by developing the skills which may help the company to become sensitive and agile and facilitate
competitive strategies which involve exploitative and explorative innovation in the company (Ward,
2012).
Developing the new product and generating the marketing plan to hire the employee with the kinds of
business processed in the outline platform with different sectors which use information system in daily
operations to become the low and high-cost producer and develop the new and innovative techniques in
the organization and increase the productivity of an employee. The usage of an information system in the
modest world may work on shaping and forming the work. The upheaval and expansion of an information
system are known as intellectual labor. Activities of the business in the modern society of business can be
implemented through tools, technology, and system of information. If the business activities and the other
processes are intended to work with information knowledge so many companies may stop once the work
information system may stop as the case observed in insurance companies and profitable banks. The use
of an information system is considered as the main and important amount of the extent of the company’s
progress and growth. Many companies may accelerate and rush to find the benefits from the system to
achieve the goals. The successful development towards the technology has made the accesses to
information in light of low cost by using such type of systems and meet the goals of the organization (Al
Wandawy, 2012)
Strategic Information system: It’s the information system that may develop to create the initiative of the
business. They are intended to give a more competitive advantage to the company and deliver the service
and product at a low cost to focus on the market segment or the innovation. It’s the salient feature of
information technology which may help the company to store processes and transfer the information they
may create. A strategic information system (SIS) is built specifically to adapt to corporate realities and
various business initiatives. Strategic information is used to achieve comparative edge and to devise

Organisational plans. It may also offer a service or product that is new and primarily based at a cheaper
price on a challenging or creative market. It allows businesses to devise corporate plan, strategic
strategies, take management choices and thus obtain competitive advantages and reduce costs.
The Information System Policy is an important factor in the field of corporate and IT and offers greater
negotiation leverage. In short, it allows businesses and businesses to delegate, store, process data, transfer
data and collect information. It also offers different resources and facilities to allow businesses to use
metrics and analysis methods in their information repositories. Information systems help them to find
resourceful growth prospects and quick ways of optimizing production and product quality. This allows
businesses with improved chain management, information management, data management techniques and
better data distribution, and review to deliver a superior customer experience at reduced or lower costs.
Fig: 1: Competitive and strategic information system
Organizational innovation: It’s the introduction of something new like the service, product, process, and
technology which is implemented by the company. It’s the adoption or creation of the behavior or the
idea which is new to the company or an organization (Azar, G. and Ciabuschi, 2017). Technology,
imagination and progress are intersecting with innovation, but they are distinct. In an Organisational
sense, imagination is a lesser concept of growth and innovation is a lesser concept of systemic
improvement. Innovation is a means of Organisational change, even without innovation change can take
place. Whereas innovation and development converge more intimately with innovation generation,
innovation and Organisational transformation overlap in deeper relation with innovation acceptance

(details below).8 Technology is one aspect or portion of innovation: many inventions are technology-
based; others are not. Technological innovation is often and should not be mistaken for corporate
innovation.
The position and associated principles of creativity in organizations are distinct. The definition of
imagination includes individuals and small teams, inventions and development with departments and
organizations, and technical transition with the product class and market. The wild implementation of
these definitions and indiscriminate analysis of each other's research results contributes to
misunderstanding and might inhibit an understanding of corporate creativity and creativity. Innovation is
a systemic (focused, intentional and organized) practice in organizations. The innovative thoughts,
behavior and skills of people and small organizations in order to control the innovation process affect
Organisational advances. In addition, both physical and social innovations will improve innovation
Organisational ability.
Discussion:
Over the last year, it has been observed that information system value creation for the business has been
growing. Effective use of the information system in the commercial strategy was emphasized which was
one of the basic and significant issues for the CEO or CIO. Studies have emphasized that SIS may support
the strategy of the business which may improve competitive benefit and organizational innovation in a
highly economic environment. A strategic information system is the portfolio of the applications of
information system or technology that may collect, analyze and process the information which is
available for the decision making and exist within the process of business strategy to achieve the
objectives of the business. Many studies have found that SIS may support the process of strategic
development and strategy with the content by enabling the strategic responsiveness through the
distribution of tactical objectives and purposes to the native company and make it conceivable to map the
threats and opportunity in the external setting (Albertin et al, 2018).
Based on the literature that may exist researchers can identify the relationship among the strategic
information system, exploratory innovation which may serve as the substance for emerging the theoretical
model Figure 2 which has elevated the hypothesis to be verified.

Fig 2: Model of conceptual Research
Organizational performance and innovation
Many companies may develop scientific competencies and abilities to formulate the strategies concerning
technology for the incremental innovation through cost leadership that may seek towards intensity to
optimize the process and improve the existing products or the fundamental innovation with the capability
to classify the knowledge and skills to provide the awareness of value formation to market by the means
of the novelty and difference. There are many approaches towards the innovation strategy in a company
that may emphasize actions and focuses on understanding the external environment to develop the new
services and products in the business process to attain the gains in operative effectiveness. Supposing that
the innovation policies are industrialized to increase financial and financial sustainability through the
productivity growth and revenue and the organizational innovation which is connected to the company’s
aptitude to use internal possessions in business process which is based on preceding trainings in financial
prudence that are stable and found that innovation may affect the performance of the company (Uotila et
al, 2009).

Moderating SIS (Strategic information system) in relationship with Organizational Innovation and
performance
According to different researchers, SIS may facilitate the ability to execute the strategy of the business.
The argument was done that the success of business strategy may involve the ability of the company to
progress effective supportive work from the staffs which may enable them to think and perform the
strategy which is reinforced by the information system. When SIS is combined into the process of
strategic development it may facilitate the strategic mindfulness and promote bottom-up and top-down
addition without the global and local border to understand strategic priorities. It was found that the use of
SIS may enable the perception of the company’s resources that may exist and enable to adapt the
transformation in the different environment. SIS may support the design stage of business strategy that
may allow the company to reconfigure the existing operational competences towards environmental
changes and facilitate the ability to reconfigure the incomes during the creation of the operative capability
(Chen et al, 2010).
SIS may facilitate the competencies that are important to the company and develop the strategy as the
product of the strategic preparation process. When investigative innovation plan is reinforced by SIS it
may focus on the creativity of the company through the formation of new services and products by using
information system resources whereas an exploitative focus on the ability which is promoted by SIS for
organizational innovation.
Another study may contribute towards the academic works regarding SIS by observing and classifying
the topologies. Another study was related to SIS which may involve ambidexterity identified to have high
performance.
Control Variables
Control variables are critical towards the research organization as they may shorten the interpretation of
the consequences towards data and arithmetical analysis. Given that the companies have the expenses and
the investment which is connected to the use of information systems and information knowledge. A study
has highlighted that the services area has spent 11% of the net revenue in the year 2017 whereas the
manufacturing sector has spent 4.5%. The study has used the variables to examine the influences of the
companies features with the size and sector which is founded on the number of staffs on the association
between the organizational innovation and performance (Marabelli, M. and Galliers, 2017).

Strategic Information system and Innovation
Strategic information systems play a main role in the company as the organization may attain a high
modest advantage. When the company considers the material as one of the main possessions of the
company which may enable the manager to predict the future the company may encourage the manager to
use information system in company to help to motivate the employees and create the potential which may
lead in turn to stay and superiority. The information system may support the company to have one of the
fundamentals for the competition to achieve better than other companies. According to the investment in
the info may subsidize to encourage creativity and innovation. Many studies may highlight the
relationship between innovation and information systems (Altabishat, 2004).