Strategic Information Systems: How to Compete in the Digital Age

What is Strategic Information Systems

A strategic information system (SIS) is known as a  system for managing information and supporting strategic decision-making. According to one definition, a strategic information system is “the information system to support or change an enterprise’s strategy.” 

Simply put, a strategic information system is a kind of Information system that is aligned with business structure and strategy.

Importance of Strategic Information System

Support for Decision Making

SIS was created specifically to aid in decision-making in an organization. It offers useful information to executives and managers who use data to make strategic decisions.

Integration of Data

To provide a comprehensive understanding of the organization’s performance and the market, SIS can integrate data from a variety of sources, both internal and external.

Competitive Advantage

SIS can give a business a competitive edge by offering special and insightful data. It can assist in identifying opportunities and risks, giving the business a competitive advantage over its competitors.

Alignment with Strategy

A company’s business strategy should be closely aligned with the strategic information system. It should aid in achieving the company’s long-term goals and objectives.

High-level Management

High-level management frequently uses SIS because it facilitates strategic planning and decision-making.

Why do businesses focus on information systems?

Customer relationship management systems

CRMs manage how well an organization interacts with current and potential customers. They analyze customer history data to strengthen business relationships, focusing on customer retention and boosting revenue.

Supply chain management systems

These systems manage the flow of data, goods, and finances associated with a product or service in the supply chain, from the initial procurement of raw materials to the delivery of the product at its final destination. 

Enterprise resource planning systems

ERPs are comprehensive systems that handle and integrate the major business processes within an organization. They can help to boost efficiency and productivity by streamlining procedures and providing real-time data and analytics. 

Executive information systems

EIS, referred to as Executive Support Systems (ESS), offers top executives and decision-makers varied internal and external information, helping them to track business performance and make strategic decisions. EIS platforms can gather data from a variety of sources, providing an overall view of business operations.

Business intelligence and analytics systems

These systems analyze business data to deliver actionable insights, allowing an organization to make informed decisions. They provide trend analysis, forecasting, and monitoring of key performance indicators (KPIs). 

Knowledge management systems

Knowledge management system (KMS) aids organizations in capturing, distributing, and effectively using their collective knowledge. They have the potential to foster innovation, improve decision-making, and improve customer service.

How to Compete in the Digital Age

Operation Support System

In a business organization, data execution is performed by the user end, which is then processed to provide relevant data products and services, such as reports, which are used by different users. This type of strategy is known as Operation Support.

This system’s primary purpose is to monitor transactions, control, supply chain, operations, and supply management. It also aids in internal and external talks, product diversification, and the updating of the organization’s central core database. 

Management Support System

Firms require accurate data in a particular format to comprehend the decisions of the organizations. The management support system strategy makes effective decision-making and task-operation processes more manageable for managers.

They are divided into different strategies, such as management, accounting, decision, and expert information systems.

Uses of Strategic Information Systems

• Making Barriers to the Entry of a Competitor: In this strategy, a company uses information systems to supply services and products that are difficult to duplicate or primarily used to support highly specialized business networks. Due to the high cost of providing such services, this strategy stops competitors from entering the market.
• Improving Marketing by Generating Databases: Information systems also give businesses and organizations a competitive advantage by creating stronger databases, using big data, and using product differentiation to improve their sales and marketing strategies. It treats already available information as a useful resource. For instance, a business may use its up-to-date databases to track client purchases and identify numerous market segments.
• Locking customers and suppliers: This is a crucial step in gaining an advantage over other businesses in the competitive market. In this information systems strategy, benefits are offered to customers and suppliers to sway their decisions and make it difficult for them to switch to the other competitor, allowing them to keep on offering their services.
• Lowering the cost of the products: It may help businesses in doing so, allowing them to offer products and services at a significantly lower price than competitors. As a result, such a plan can contribute to the firm’s expansion and growth.
• Using technology in the value chain: It helps businesses identify certain business operations where strategic information systems can be more useful and where competitive market strategies can be more effective.

=> Watch more: How to make an IT strategic plan successful?

Conclusion

Your organization can distribute, store, process, and move sets of information you receive and produce with the use of strategic information systems. A strategic information system is important in keeping your business operations and services efficient and smooth. Your organization’s needs, structure, and strategy technology all be taken into consideration while designing your strategic information system.

Although these systems have strategic potential, keep in mind that their success depends on how successfully they are deployed, utilized, and aligned with the organization’s overall strategy. 

If you’re interested in learning more about strategic information systems or need any help with your data system, SmartOSC is here for you!  At SmartOSC, we assist you in locating any weak points in your company’s workflow that may be hindering you from achieving the desired results. This can help to improve your business performance effectively! Contact us today!