Strategic information system helps organizations to develop their generic strategies in order to attain competitive advantages. GM often have to demonstrate a clear understating of the information system of the company compare with those of their competitors, they must be prudent about the consequences of improper use of IS/IT. (Turban et al, 2006; Hammatfar et al, 2010) believe that Implementing IS strategy could be a complex task due to the degree and the complex environment of the systems. In principle, the strategic roles of information systems in an organization aid an organization in achieving a competitive advantage over other similar organization devises methods and techniques, suffice to say strategies, to translate current potentials to the desired future. (2001) further describe that by aligning its information systems with the rest of its organizational goals, Home Depot was able to integrate IT successfully with the rest of the business. 4. We therefore investigate in this paper the way information is obtained, analysed, judged and applied by executives in industry that have to take strategic … Large organisations have a number of levels of organisation, each with different emphases and specialities. By strategic we mean the long-term, far-reaching role of IT systems in an organisation. A Strategic Information System can be any IS at any level of an organization that change the goals, processes, products, services, or environmental relationships to help the organization gain a competitive advantage. A Strategic Information System can be any IS at any level of an organization that change the goals, processes, products, services, or environmental relationships to help the organization gain a competitive advantage. It is for this reason that the strategic role of information system has to be clearly defined in the planning processes itself. There must be constant adjustment between all three strategies. Nicosia 1065 This example taken from (Business and Leadership Ltd, 2008-2013) illustrate that strategic use of Information resources can maximise the effectiveness of the firm’s business strategy. Information systems are changing the ways business is done, introduction of electronic presence and enterprise resource planning is revolutionizing the way modern organizations operate, such advancements and their influential relevance with strategic management of business is the key factor that is making top management to transform the business by keeping information systems as a main … Information Systems Strategy: is a plan to help organization outperform its competitors - Doing things differently - Provide value at lower cost ‘‘A strategic information system is (one) that supports the competitive strategy of the organisation, e.g. SEJ has market driving business strategy of high density, consolidated store openings which is the key to efficiency and stability. Six Major Types of Information Systems A typical organization has six of information systems with each supporting a specific organizational level. Graph taken from (Weill and Nagayama, 2004, p.17). Role of Strategic Information System. Information System and Business Strategy. For instance, in early 90s United Airlines Inc. spended cost $1 billion to replace Apollo Business System an automation package for travel agents offices in its new business system with new system called Enterprises Management System as the old system was by then developed randomly. At the most basic level, an information system (IS) is a set of components that work together to manage data processing and storage. Businesses implemented numerous successful IT-based strategic systems during the period from 1970 - 1990s, the companies that owned them to gain a competitive advantage for several years before competitors make a replica of their systems (Turban et al, 2006; Hammatfar et al, 2010). MIS are distinct from Strategic ISs are designed to establish a profitable and sustainable position against the forces that determine industry competition. • Information systems that promote business innovation, improve operational efficiency. The changing role of information technology in an organization can be summarized as in Figure 1. The company’s productivity and accuracy has improved due to movement of its operator from order to order with the capability of such technology. The framework shows the relationship between the IS strategy with organisational and business strategy within an organization. Running Head: ROLE OF STRATEGIC INFORMATION SYSTEM. Information Systems (IS), Information Technology (IT) and ‘Digital’ 2 ‘Digital Disruption’: The Impact of IS/IT 7. Sorry, preview is currently unavailable. Albers, B. This literature review is basically based on a strategic role perspective of the IS/IT integrating with other management strategies of an organization. Information system is simply a tool to achieve business strategy. Today, information is increasingly recognized as a key source of the organization comparable in importance to capital and human resources. Its role is to support the key aspects of running an organization, such as communication, record-keeping, decision making, data analysis and more. Strategic Role of Information System 3 By: Dinesh The performances of each business units can be maximzied, enhanced if these business units can develop or create a concept of central core of competencies. According to (Hemmatfar et al, 2010), the concept of "Value Chain" was used by Michael Porter (1985). Information systems when used for providing information to managers for their decision-making needs become a management information system. The example demonstrate the Firm’s strategic capabilities to use new IT assets that helped them to replicate the traditional inventory management which reduced the stock errors, labour hours and increases the efficiency in supply chain management to achieve the ultimate competitive advantages. The role of a management information system, or MIS, can vary from one company to another in its details, but its overall purpose is generally the same: to improve the efficiency of daily transactions, operations, management and business strategy through the analysis of relevant information. A process is a series of steps undertaken to achieve a desired outcome or goal. It is especially true that SIS has influenced strategic planning and is constantly improving company operations in significant ways. Strategic role of Information System • Strategic role of Information System involves using to develop products, services and capabilities that give a company major advantages over the competitive forces it faces in the global marketplace. One has to plan the information which the management information system will churn out for the different levels of management. (Hemmatfar et al,2010) says that the use of advanced information systems in value chain activities allows companies to enhance competitive differentiation as well as attain cost leadership and consequently gain sustainable competitive advantage. Hemmatfar et al (2010) believes that primary activities are directly concerned with the creation or delivery of a product or service, as primary activities and support activities are distinguished by Michel Porter (1985). Aspects of the role of information in strategic decision-making by executives in industry are hardly ever mentioned in management research publications. In short, information technology has shifted from a highly decentralized support operation to a centralized strategic function. SEJ has been able to achieve competitive advantages over competitors because of the pursuing such IS/IT initiative. The literature also suggest generally an IS strategy and organization strategy are driven by business strategy. It was also selected by Computerworld magazine for three out of the past four years as number one place to work in information services. (Weill and Nagayama, 2004) says that such an advance and sophisticated Information system in Japan is very important because the temperature gap within small distance is too high and the report forecasted by TV are unreliable. Home Depot required to process and present information in terabyte (one trillion characters). SEJ started its first store system in 1978, since then they continued to develop total information system. Albers, B. The case study describes how the Seven Eleven Japan (SEJ) one of the world’s largest convenience store chains headquartered in Japan strategically implemented Information system to become the leader of the retail business in Japan. Earl (1998) asserts that IS must have the potential to be a strategic weapon in gaining competitive advantage, improving productivity and performance, enabling new ways of managing and organizing and developing new businesses (Benova and Gregus,2006). To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. 4.Strategic information involves a period generally up to five years while tactical information involves a … As such information system has become known as an driving force of integration and the enabler of new competitiveness for current modern business in the global marketplace and the reason strategic IS supports or shapes competitive strategies, the notion of Strategic Information System is very crucial, IS can be used for cost leadership, differentiation strategy, creation of innovative applications, changes in business processes, collaborate business partners, reduction of costs, acquiring competitive intelligence, and others. The speed of the product pickup has improved from 160 to 260 cases per hour. Invested €1 million in radio frequency based voice control of its logistic and warehousing. According to Porter’s generic … A strategic IS helps an organization gain a competitive advantage through its contribution to the strategic goals of an organization and its ability to significantly increase performance and productivity Information system can help strategize an organizations business model or enhance existing ones to give it an edge over its competitors. In business, management information systems (or information management systems) are tools used to support processes, operations, intelligence, and IT. The Role of Information Technology in Management - Free download as PDF File (.pdf), Text File (.txt) or read online for free. SEJ has been very successful that it has never experienced any deficit since its first operation in 1974. Management Information System – Management Information System uses input from the TPS and processes the data to convert it into actionable information or reports. They are the core of the information management discipline … This paper analyzes and critically evaluates the company’s practice in addressing the issue of low internal and external integration of its information systems and its negative impact on upstream and downstream value creation. Therefore, it evaluates which value each particular activity adds to the organizations products or services. Strategic information system (SIS) is increasingly becoming important integration unit in many business application services. Present usage of information systems and technologies of MBSL 2.1 Human Resource Information System (HRIS) HRIS is a management system designed specifically to provide managers with information to make HR decisions. Since the implementation the company has reported 80pc reduction in inventory errors. 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