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Strategic Information System

University: University of Cumbria

  • Unit No: 16
  • Level: Diploma
  • Pages: 7 / Words 1692
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 17082

Introduction to Strategic Information System

The Assignment refers to the process in which the scholar develop with the critical evaluation for all the negative as well as positive aspects of the specified topic. Further, in this the scholar highlights by evaluating the viewpoints determined by different individuals regarding to the strategic information system and its impact in the organization. At the end, it can be said that literature review assist the scholar to prepare with the thesis in the data analysis section.

Concept of strategic information system

As per(Freeman, 2010), strategic information system can be define a system which is formulated with a motive to provide a initiatives to business. With the adoption of this concept, an organization can gain competitive advantages at global level. In addition to this, a firm delivers products and services at low cost. The motive of this concept is to target a particular group in order to provide innovation. However, this terminology is somewhat related with the concept of information technology. It can also be said that, strategic information system provides an assistance to the organization and its operations. By considering this factor, an organization is able to store and receive the requisite information with the effective methods. In context to this, strategic information system also provides an organization to bring betterment and innovation in their business strategies. For determining the strategies of the firm, it is important to take into consideration the resources which are available with them and make the most efficient plan to utilize them to the best. It is because information management system allows to attain the data regarding diverse internal and external environmental, aspects. It is an effective pathway which provides with the direction to the enterprise and as per the objectives of the company develop with the plans and policies by evaluating the available resources. Further, it also assist in enhancing the performance of the employees as well as the company as a whole. Moreover, with an efficient use of information system the organization can attain a higher competitive edge in the market. In addition to this, the cited concept is used for the implementation of the business entreaties with the used of computer system. This is a system which helps an organization to continuous its operations on regular basis. However, the companies gets an appropriate direction with the consideration of this concept. This process also allows an organization to perform its functions very well. However, the information systems allows the organization to manage its functions in a well manner.

The SIS approach can be adapted by the organizations in order to attain their goals and objectives in an effective manner. This will also allows a company to maintain the records and information in an electronic form. This will assist the company in proper maintain of the records and data of the company information. It will also allow the organization to lower down the duplication of work in a way that the gaols and objectives of the company can be maintained.  The strategic information system will ensure effective planning for both the predictable and unfeasible contingencies in an organization. Further, this approach is beneficial and applied for both the organization whether it is small or large. Thus, the strategies of the company are taking into consideration number of factors such as the legal policies, plans of the competitors and the future aspects of the market. The ultimate impact of the cited concept will help this organization to implement the innovation for the improvement of business strategies for future growth.

Impact of strategic information system on organizational performance

As per the view of (Liao, Chang and Wu, 2010),  strategic information is having a positive impact on the performance of the company. As it refers to the management team which lead the employees towards the successful completion of the goals and objectives of the organization. However, there are three types of information system which is used in an organization. It includes financial system, operation system and strategic system. Whereas, financial information system allows the company to analyse its accounting, budgeting and other operations with references to the finance are done with the help of computerization. The major impact of the same is that, it makes the tough calculations easy and accurate. The another positive impact is that it controls all the systems which helps in removing the duplication of work. On another side, (Melville, 2010) stated that for determining the  strategies and plans for the organization it is crucial to evaluate the goals and objectives so as to complete them with greater efficiency. Furthermore, with the help of proper strategic information planning the managers are able to align the work to the employees as per there interest and specialization which in the long run ensures with the high performance level.

(Wheelen and Hunger, 2011) explained the positive impact of strategic information system as it creates barriers to the entry of the competitors. An organization use this technique in a way that the duplications of the products and services of the company are hard. This creates the barriers for the new company who wishes to offer the similar products as the competitors. Further, it has been evaluated that without using the proper strategies the decision making process can be reactionary which may result in number of mistakes and the company has to bear the expenses. The another positive impact of this technique is that it generates database to enhance the marketing. With the help of data base management strategies an organization is able to edge over its competitors with the generation of database. For an instance, the organization sure database for the controlling and supervision of the purchases done by the consumers. However,  (Sidebottom, 2014)  critically explained that it is very important to report the strategic information for the previous year so that they can evaluate the performance level of each individual and of the company as a whole. This concept allows the organization to make proper records of the performance of the employees in so that it can help in future context.

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Models for strategic information system

According to (Wheelen and Hunger, 2011), Porters competitive advantage model can help the organisation to analyse the five factors such ass threats of new entries, threats to substitute of products, bargaining power of the suppliers and buyers. However, the analysis of these five factors allows a company identify the factors which can affect the performance of the industry. However, with the help of this model an organization may get all the information with good management. In addition to this, the stated model helps the company to focus on two factors such as lowering down the cost and differentiated products.  Besides this, Porters provides an effective tool for the appropriate analysis named value chain. By considering this theory, the firm is able to focus on nine activities which helps the company to deliver the products to the customers.

Read more - Different Types of Tour Operators - Travelodge

Ways to improve effectiveness of strategic information system for better organizational performance

The company can follow the steps which can help to develop with the effective strategies.

Environmental Scanning- It is the process in which the data is been collected from different means after evaluating the internal and external factors. This will assist in determining the actual situation of the market so that the strategic plans can be developed according to it.

Strategy Formulation- It is important to gather number of plans or strategies so that the best one among them can be selected to ensure the accomplishment of the goals and objectives of the company. For the same, the organization can adopt the management information system. With the help of this tool, the company will be able to maintain the important data through which the proper strategies can be formulated.

Implementation of the strategy- In this step the chosen strategy is been intended to put under action to achieve the goals. Further, it mainly involves the organization's structure, segregating the resources, coming up with decision and lastly to manage the human resource in an effective manner. By considering the information system methods like MIS, customer relation management the company will be able to implement the strategy in an effective manner.

Use of software: The organizations can use software like MYOB, Reckon and Saasu. These software will allow the organization to properly manage the data and information in the work premises.


From the above it can be concluded that to grow and develop the organization, it is important to have an efficient strategic information system. This will help the company to make proper trace of the record so that it can implement its strategies in an effective manner. Further, it has also been evaluated that an effective management of the plan will assist in enhancing the performance level of the company. Hence, several methods are been determine to improve with the effectiveness of the strategy.


  • Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge University Press.
  • Liao, S. H. and Wu, C. C., 2010. System perspective of knowledge management, organizational learning, and organizational innovation. Expert systems with Applications. 37(2). pp.1096-1103.
  • Liao, S. H., Chang, W. J. and Wu, C. C., 2010. An integrated model for learning organization with strategic view: Benchmarking in the knowledge-intensive industry. Expert Systems with applications. 37(5). pp.3792-3798.
  • Melville, N. P., 2010. Information systems innovation for environmental sustainability. Mis Quarterly. 34(1). pp.1-21.
  • Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy. Pearson Education India.
  • Zott, C. and Amit, R., 2010. Business model design: an activity system perspective. Long range planning. 43(2). pp.216-226.
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