- Category: Information Science and Technology
Businesses utilize data, information, and information systems to achieve their strategic objectives. According to Barlow (1990), the deployment of Strategic Information Systems (SIS) should align with business objectives to achieve strategic goals. The coordination and management enabled by Information Systems (IS) is crucial for companies operating globally. However, a lack of experience and resources can pose challenges. Pant and Hsu (1995) state that the success of an integrated business objective depends on the organization's structure, its level of IT experience, and the availability of information resources.
Due to its importance, SIS is becoming a key integration unit in many business applications. This approach to strategy formation has influenced the current forces visible in global markets. SIS has improved company operations in significant ways, capturing and challenging while improving performance and realizing gains on investment. SIS is a practice that tends to regard application regimes such as planning, connecting multiple applications with different access points, and directly to the information system to arrive at consistent economic evaluation of the information system investment (Rockart 1979).
Pant and Hsu (1995) define SIS as "the analysis of a corporation's information and processes using business information models together with the evaluation of risk, current needs and requirements.” In this way, SIS is understood as a critical requirement for corporate data processing and the development of computer-based systems tailored to a company's needs.
Therefore, there is an intertwined relationship between information system function and corporate strategy (Pavri and Ang 1995; Beath and Orlikowski 1994; Porter and Miller 1985). SIS has been widely used as backroom operation in first line support services to deal with day-to-day mundane tasks, leaving office operations to concentrate on strategic planning (Lederer1992). SIS planning begins with the identification of needs followed by strategic implementation that formalizes objectives, priorities, and authorization of information system projects (Pant and Hsu 1995).
For example, Wal-Mart Stores utilize a computerized inventory control system that electronically orders merchandise from suppliers and maintains an orderly warehouse, using the Wal-Mart Satellite Network (WSN) that enables two-way satellite communications between networks (Sheth 1994). The integration of electronics with information systems is also visible in Apple and Hewlett-Packard computers.
Businesses must align their strategic direction with information system applications as a strategy to increase the importance of information technology. Data protection legislation mandates that subjects are provided with extensive information explaining how data will be gathered and processed, as well as the full identity of data controller and purposes of data being collected.
In conclusion, SIS plans must be specific and simple to allow understanding of procedural order of development. Continuous updating and improving of information system applications to align with a company's strategic objectives against its capabilities is required. The application of SIS is critical to a company's future success, and companies that apply IS are expected to record increased turnover ratios due to reduced error per unit levels.
The following are a list of sources that cover various topics related to information technology:
- RFC 3513 by Hinden (2010) which discusses the addressing architecture of Internet Protocol Version 6 (IPv6).
- Information Modeling by Hsu and Rattner (1993) which is an article published in the Journal of Productions and Operations Management advocating for information modeling to ensure the accuracy and reliability of information systems.
- Information Technology and the Measurement Difference: A Fusion Map by Keen (1993) published in IBM Systems Journal which presents a framework for understanding how the implementation of information technology can affect organizational productivity and efficiency.
- Creating a Strategic Capabilities Architecture by King (1995) which is an article published in Information Systems Management that discusses how to design strategic architecture that aligns the organization's vision with its information technology capabilities.
- Strategic Information Systems Planning – The Method/1 approach by Leader (1992) is a paper published in Information Systems Management that presents a planning methodology based on the "Method/1" approach.
- Information Technology Changes the Way You Compete by McFarlan (1984) which is an article published in Harvard Business Review that discusses how information technology can give an organization a competitive advantage over others.
- A Study of the Strategic Planning Practices in Singapore by Parvi and Ang (1995) is an article published in Information & Management that presents a case study of strategic planning in Singapore.
- Strategic Information System Planning: A Review by Pant and Hsu (1995) is a paper presented at the Information Resources Management Association International Conference which provides a review of the literature on strategic information systems planning.
- Manufacturing Information Integration Using a Reference Model by Pant, Rattner, and Hsu (1994) published in the International Journal of Operations and Production Management which discusses how a reference model can be used to integrate manufacturing information in an organization.
- How Information Gives You Competitive Advantage by Porter and Millar (1985) which is an article published in Harvard Business Review discussing the strategic use of information technology to gain competitive advantage.
- Chief Executives Define Their Information Needs by Rockart (1979) is an article published in Harvard Business Review that discusses how executives can identify their information needs to help with strategic planning.
- Software tools for supporting planning by Rouse and Howard (1993) is an article published in Industrial Engineering that discusses the use of software tools to aid in the planning process.
- Strategic Importance of Information Technology by Sheth (1994) which is an article published in Advances in Telecommunications Management that discusses how information technology is critical for an organization's strategic success.
- The Technology Payoff is a feature article published in Business Week (1993) that discusses the benefits and challenges of investing in information technology.
- An Overview of UK Data Protection Law by Wessing (2010) which provides an overview of data protection laws in the UK.