12 Questions
How did the West Coast entrepreneur exploit unused late evening airtime to provide a tailored news service?
By broadcasting a reading of the newspaper followed by a coded header containing information on the content of the article, clients could tune their devices to the appropriate radio frequency and record only the news segments they were interested in based on predefined keywords.
Explain how Strategic Information Systems (SIS) can provide a competitive advantage for businesses.
SIS can be used to reduce the cost of current products or improve service delivery, thereby offering a competitive edge over rivals.
Describe the potential impact of Strategic Information Systems (SIS) on the planning process within organizations.
SIS technology can enhance the planning process through better data sources and advanced analytical techniques, leading to enhanced forecasting and evaluation capabilities.
What is the primary distinction between Strategic Information Systems (SIS) and Operational Information Systems in terms of their decision-making capabilities?
SIS primarily provide assistance in some aspect of the decision-making process rather than making decisions themselves, while operational systems are more focused on executing decisions.
Explain the role of Strategic Information Systems (SIS) in exploring and evaluating alternatives for decision-making.
Strategic information systems often assist in exploring alternatives for decision-making by providing structured planning process support.
What is a key factor that may limit the flexibility of Strategic Information Systems (SIS) in supporting top management work?
Due to the ever-changing nature of top management work and its fragmented nature, most activities are likely not amenable to computer support, although advances in technology and increasing familiarity with digital tools may change this dynamic in the future.
Explain the key distinction between the technology push and needs pull approaches to incorporating technology into strategic activities.
The technology push approach involves identifying new products or services based on the capabilities of emerging technologies, while the needs pull approach involves identifying a specific service or product requirement and then using technology to address that need.
Provide an example that illustrates the technology push approach and its potential impact on strategic planning.
The emergence of inexpensive microcomputers in households led to the creation of the video game industry, which proved more profitable than movies and offered a higher return on investment (ROI). This example demonstrates how the capabilities of a new technology (microcomputers) suggested a new product (video games) and influenced strategic planning in that industry.
What is the primary goal of Strategic Information Systems (SIS), and how can they be implemented within an organization?
The primary goal of Strategic Information Systems (SIS) is to provide managers with accurate, timely, and relevant information to aid in decision-making processes. SIS can be implemented as computer-based, manual, formal, or informal systems, depending on the specific requirements of the business.
Describe the key aspect of the technology push approach that is essential for successful strategic planning.
The key aspect of the technology push approach lies in the ability to forecast technological trends, particularly in the consumer market, and interpreting the implications of those trends for strategic planning and product/service development.
Explain how the needs pull approach differs from the technology push approach in terms of the starting point for incorporating technology into strategic activities.
In the needs pull approach, the starting point is identifying a specific service or product requirement, while in the technology push approach, the starting point is the capabilities of the emerging technology itself, which then suggest new products or services.
Evaluate the potential risks and benefits of relying solely on either the technology push or needs pull approach for strategic planning in a rapidly changing technological landscape.
Relying solely on the technology push approach may lead to developing products or services that lack a clear market need, while relying solely on the needs pull approach may result in missing opportunities presented by emerging technologies. A balanced approach that considers both technological trends and market needs is likely more effective in a rapidly changing technological landscape.
Study Notes
Strategic Information Systems
Introduction
Strategic Information Systems (SIS) refer to systems that serve the information needs of upper management within an organization. These systems can be computer-based, manual, formal, or informal, depending on the specific requirements of the business. The primary goal of SIS is to provide managers with accurate, timely, and relevant information to aid in decision-making processes.
Technological Advances and Their Impact on Strategic Planning
Technology plays a crucial role in shaping the development of strategic information systems. There are two main approaches to incorporating technology into strategic activities: technology push and needs pull.
Technology Push
With technology push, the capabilities of the technology itself suggest new products or services. For instance, the emergence of inexpensive microcomputers in households led to the creation of video games, which proved more profitable for their distributors than movies and offered a significantly higher return on investment (ROI). The key aspect of this approach lies in the ability to forecast technological trends, particularly in the consumer market, and interpreting the implications of those trends.
Needs Pull
In needs pull, a service or product requirement is identified that can be addressed using computer technology. One example is a West Coast entrepreneur who recognized the potential for a service that scanned newspapers for information on topics specified by clients. By exploiting unused late evening airtime, they were able to broadcast a reading of the newspaper followed by a coded header containing information on the content of the article. Clients could tune their devices to the appropriate radio frequency, and if the code matched one of their predefined keywords, it would activate a recording function, allowing them to listen to only the news segments they were interested in.
Utilizing SIS for Business Strategy
To effectively utilize SIS, businesses must consider their strategic goals and the potential applications of technology. Some organizations have successfully integrated SIS into their strategic plans to achieve various outcomes:
- Improved Data Processing: SIS technology can enhance the planning process through better data sources and advanced analytical techniques, leading to enhanced forecasting and evaluation capabilities.
- Measurement of Performance: Internal information systems can serve as benchmarks for assessing current performance, providing valuable insights for future strategic moves.
- Competitive Advantage: SIS can be used to reduce the cost of current products or improve service delivery, thereby offering a competitive edge.
- Exploration and Evaluation: Strategic information systems often assist in exploring alternatives for decision-making by providing structured planning process support.
Differences between SIS and Operational Information Systems
SIS differ from other types of information systems in several ways:
- Scale: While operational systems usually operate on large databases with numerous users, SIS tend to handle smaller datasets with fewer users.
- Decision Making: SIS primarily provide assistance in some aspect of the decision-making process rather than making decisions themselves. Most systems focus on delivering information across a wide range of subjects necessary for strategic planning.
- Flexibility: Due to the ever-changing nature of top management work and its fragmented nature, most activities are likely not amenable to computer support. However, advances in technology and increasing familiarity with digital tools may change this dynamic in the future.
Test your knowledge about Strategic Information Systems (SIS), including its role in aiding upper management, technological advances impact on strategic planning, and the differences between SIS and operational information systems.
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