Strategic Information Systems Quiz

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.