This article deals with the strategic information system. In recent times, the principles of strategic management are being applied to manage information system delivery. A little aspect of this application system is enumerated in this article. Details of the strategic management information system (SMIS) are not given in this unit as the process is still being fine-tuned by various researchers.
Management Information System
There are many definitions of management information system (MIS) just as there are many definitions of strategic management. However, one of the most recent definitions was given by Wolsten Holme et al. (1993) who defined MIS as including everything which deals with the computer assisted flow and presentation of information.
Strategic Management Information System (SMIS)
This term represents only a subset of the total management information system (MIS) portfolio. It is the set that is considered critical to the future or current business competitiveness and the survival of the particular organisation. The term is relative rather than absolute.
Strategic Planning for Information Systems
In spite of the history of neglected planning, information system (IS) needs effective strategic planning, and perhaps more than other than functional areas. Planning and implementing an appropriate IS strategy produces that organisational confidence that will cost-effectively deliver these strategic systems.
The surveys of the 1980s consistently a place improved IS strategic planning first on any list of concerns for both user and IS management. Strategic planning results in a strategic plan and like any other plan or strategy, once identified and documented, needs receiving as part of an ongoing planning process. Until an update is made, it is the focal point or all implementation decisions.
The purpose of strategy planning for IS is to identify the most appropriate targets for technological support and to schedule that technology for adoption. To a large extent, the strategy
planning process must establish appropriate levels of shared commitments since such plan is intended to shape decision on future IS. The process is not just to decide on issues visible now; such a focus would more conventionally be called an operating plan.
Information System Strategic Planning “Tool Kit”
Usually, the discussion on a range of tools that might contribute to an IS planning “tool kit” are often lengthy. However, attempts will be made to list the important aspects as these are very much related to the tools discussed on the general business management strategies in units 1 to 15 of this course. These “tool kit” have been put into a checklist to shorten the unit and facilitate quicker understanding.
Strengths Weaknesses, Opportunities and Threats (SWOT) analysis forms a conventional and an essential tool in any strategic planning approach. SWOT has as its strength, the fact that it is very familiar and its purpose and categories are well known. It is also considered both as external and internal factors and when properly used can balance the two. SWOT analysis in IS includes the following:
a. Approach to Information System (IS)
b. Use of IS
c. Delivery of IS
d. Data management
e. Technical skills.
Therefore, the SWOT analysis is a reminder of the need for balance and attempts to judge the options available. Therefore, having become
aware of the potential effect of Information System, we can use SWOT to weight up the risks involved.
Evaluation of Information System Capability
|
Threats opportunity the information faces |
Attack “go for it” |
Beware “do don”t do it” |
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Explore “if have time ” |
Project “watch yourself’ |
Possible Responses on Basis of SWOT Analysis
Business Opportunities Offered by Information System
Books have been written on the opportunities that result from the impact of Information System on industries and business. These opportunities have been categorized as follows:
a. Where the opportunity is to use technology-based system to make more effective the integrative use of information in the
organisation” s value adding process.
b. Where the opportunity is for an organisation to develop, produce, market and either deliver new or enhanced products or services based on information.
(iii) Where the opportunity is to provide executive management with
information to support the development and implementation of strategies (Robson, 1997).
Strategic Importance of Current Information System
Competitive Position
A number of techniques exists which support the analysis and
assessment of the organisation’^ competitive position from an IS perspective. This set of tools is dominated by the work of Michael Porter on the nature, structure and responses to competition.
Gregory Partsons (1983) agrees that the strategic importance of IS could be assessed using the frameworks defined by Porter”s work on the nature of competition. On this five forces model was adopted by Porter individual organisation rather than at the industry level. This relative power of the five forces models was adopted by Porter and Miller (1985) which operates at the level of an individual organisation rather than the industry level.
This model can be used to assess whether IS can influence the relative power of the five forces and to question what IS opportunities relate to those significant forces including opportunities that exist to alter the relative power of forces. A good IS strategy would enable the organisation to erect a barrier against potential new entrants and change the balance of power in supplier relationships in favour of the firm.
The classic five-force model of industry competitive provides a multipurpose model which can be used to assess any given industry which can be three major things.
Since these forces determine profitability, by defining the element that created the degree of return on investment, they provide a way of structuring general questions that can be asked about the role IS does/can play in the organisation. Once the relative power of the fire-force power is determined, it is possible to analyse the opportunities to us IS.
Internal Position
There are many IS strategy planning techniques that model or assess aspects of the internal operations of the organisation, including its IS management process. One is of the IS strategy tools. Generic IS strategy, which includes general planning, leading-edge, free market, monopoly, scare resource and a necessary evil (Robson, 1997).
CONCLUSION
This unit demonstrates the significance of strategic management and strategic planning in management information systems.
The information systems strategic planning “Tool Kit” in use are explained. The various business opportunities by IS impact are equally discussed. This is supported by Porter”s five-force model on IS opportunities.
