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importance of strategic information system

It is because, in SDLC, the selection of suitable hardware and software is important in order to produce the quality system. Information Systems Strategy: is a plan to help organization outperform its competitors - Doing things differently - Provide value at lower cost ‘‘A strategic information system is (one) that supports the competitive strategy of the organisation, e.g. It is difficult to decide which information system is the best for the organization, but with the help of SISP it could be done. Process of developing the database will make the involvement of SISP process because they are interrelated. (Rob & Coronel, 2007). Moreover by conducting SISP the project team can identify the portfolio of computer-based applications for the organizations indirectly assist the organization in executing its business plan and realizing business goals. Figure 6 shows process involve in the IE. “How the database can operate”? How to gather all particular data needed? 8 steps involve in developing the conceptual model using ER diagram are; Identify, analyze, and refine the business rules; Define the attributes, primary keys, and foreign keys for each of the entities; Have the main end users verify the model in step 6 against the data, information, and processing requirements; ER diagram is very important in order to ensure the database will work successfully. Therefore a critical analysis and studying must be conducted by the designer to ensure the best DBMS will be selected to develop the database. In many industry surveys, improved SISP is often mentioned as the most serious challenge facing IS It can be discussed in terms of the identification of the organization’s current position. Furthermore, SISP is a proper planning which suitable in our time that most of the chores activities are conducting by using information technologies and systems. Different organization and company will have different problems and constraints. This internal coordination gives advantage to that organization which it can cut cost, reduces data redundancy, and will increase effective management. By doing this the designer could defined the business rules from all the data gathered. Since the world is so competitive, the strategic level of management will invest in information system to help a corporation to achieve competitive advantage. VAT Registration No: 842417633. The answer is through the conducting of SISP by top management level since top management support is a key determinant of SISP success (Kearns, 2004). The Ministry of Health (MOH) is a ministry that is responsible for the public health and in the effort to improve health care services, MOH had developed a Strategic Information System Plan (SISP) which known as Pelan Strategik Teknologi Maklumat (PSTM) 2011 – 2015. Abstract. It makes this task neater and easier. Why does the organization need to implement SISP? Two views of data: business manager and designer. Chief Executive Officer? SISP is important in order to ensure the organization reach what their need. Database is one of the components that comprise in the information system, and it is required for the purpose of knowledge sharing, decision making, storing, managing, retrieving and analyzing the information in the organization. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! In library environment it maybe concern of the library holdings; patron details – for the purpose of circulation process; vendors; cataloging; and other. At this phase the designer must create the conceptual design, process of selection of DBMS, create the logical design and create the physical design. Therefore PSZ are managing their resources aligned with the university’s chore activities which teaching, learning, consultancy, research, and publication. 1) Creating barriers to competitor’s entry: In this strategy, an organization uses information systems to provide products or services that are difficult to duplicate or that are used to serve highly specialized markets. The Journal of Strategic Information Systems focuses on the strategic management, business and organizational issues associated with the introduction and utilization of information systems, and considers these issues in a global context. Scope and boundaries is a limit to the system. Besides the information mention above, another important point of implementing SISP in the organization is the establishement of new computer system that can improve the strategic position. By using our site, you agree to our collection of information through the use of cookies. (Rob & Coronel, 2007). This situation also involves SISP process in order to ensure the database that will be developed can improve the strategic position of IS in the organization and also could gain competitive advantage. With SISP, can ensures that the IS function support the organizational go… While health environment maybe concern about the database that will be used in storing patients’ history – including the medication that they have taken before; doctors’ particular details, treatment; and other that is related to this management. 2. Moreover, SISP activities will take into account the business strategy of the corporation, and variety of external factors such as positioning of competitors and suppliers. You can download the paper by clicking the button above. The chosen of designer is depending on the complexity and scope of the database environment which consider the organization goals and objectives since the database that will be developed or modify must support the organization’s goals and objectives. Will the database encompass the entire departments in the organizations or specific to certain department? The importance of Strategic information systems planning in an organization has been well documented within the IS literature. It has the responsibility and task to gather, collect, store, process, retrieve, transmit, and distribute the information among the organization. The scope means that to what extent the database design can operates according to the operational requirement. Gone are the days where companies had to have a wealth of physical filing cabinets for this. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. (Acumen Insights, 2009). Then, the designer or team prepares the system and subsystem for the databases according to data gathered. Strategic management of Information Technology (IT) has long been regarded as a critical component of business performance. Agree with the Lederer and Sethi (1988) that SISP is the process for the organization to planning properly in determines the best and suitable computer system and application for the organization to support the business operations. The They make a decision to develop that kind of information system when they conscious that particular IS could improve their strategic position in the organization hence accomplish their goals and the parent organization’s goals. Once more SISP is involve and related with this situation in order to develop a database since by applying SISP the organization could understand and ensures the alignment between organizational business goals and objectives with the information system (IS) activity. For strategic managers to track and deal with strategic issues, assisting long-range planning. growing realization of the need to make information systems of strategic importance to an organization. Given an example in Sultanah Zanariah Library (PSZ) at Universiti Teknologi Malaysia (UTM), which they are developing a new information system which is Reading Station. A strategic information system has been defined as, “The information system to support or change enterprise’s strategy.” This situation also involved the SISP process since process of gathering that particular information (collect and analyze the problems and constraints) could be done with the assist of SISP because SISP consists of a strategy in planning and managing the resources in the organization including the use and application of information system. The designer must find the precise answer since it is important to facilitate the development of the database which is concerned with operational relationships among business units. The description of operations could be getting from company managers, policy makers, department managers, and written documentation. Study for free with our range of university lectures! Registered Data Controller No: Z1821391. Enter the email address you signed up with and we'll email you a reset link. Normally information system analyst will conducting SISP activities to analyze which is the best or suitable information system for the organization since it must take into consideration about the alignment of information system (IS) planning and organizational strategic goals and objectives. Process of deciding whether to build a new system or modify the existing system also involves SISP process such as Value Chain Analysis (VCA) which consists in impact methodologies in SISP. 3. Do you have a 2:1 degree or higher? To develop an accurate data model, the designer should have a thorough understanding about the data types that is used in that particular organization. Why Information Is Needed Marketing Environment Strategic Planning Customer Needs Competition Strategic Planning Strategic Planning Strategi c Planning Strategic Planning 16. (Newkirk, Lederer, & Srinivasan, 2003). The business strategy of the company is very important in planning for information systems. Strategic information systems are the traditional or conventional information systems used in innovative ways. Within SISP, the integrating of IS map within organisation can be facilitate. SISP can assist the organization to identify their current position either they are in critical situation that need IS immediately or not. Wrong relationship in the diagram can cause the database cannot perform as desired by the organization hence could make the information unable to retrieve and share. They may deliver a product or service that is at a lower cost, that is differentiated, that focuses on a particular market segment, or is innovative. A good information system provides a framework for companies to evaluate themselves relative to these dimensions. Impact methodologies consist of Value Chain Analysis and Critical Success Factor, where as alignment methodologies consist of Information Engineering, Business System Planning, and Method/1. (Bozarth, 2006). (Lederer & Sethi, 1998). SISP also ensures that adequate resources or the use of scarce resources are allocated to critical application and the use of resources in properly manner. It can be discussed in terms of the identification of the organization’s current position. When the data element and characteristic are defined and gathered, it is easier for the designer to understand what kind of the data are needed in each department hence help them to produce a good relationship in Entity Relationship (ER) diagram later. Source: Rob & Coronel, (2007). For instance if the organization took the Business System Planning methodologies (BSP), therefore it could assist in interpreting the organization’s operating environment because during this methodology, the firm can recognizes its business mission, objectives, functions, and determine its business process. SISP also ensures that adequate resources or the use of scarce resources are … (Rob & Coronel, 2007). Database development and implementation are engage in Database Life Cycle (DBLC). (Bozarth, 2006). Unfortunately, nowadays the technology changed rapidly, and those databases that will be designed must follow and comply with the existing hardware and software. (Lederer & Sethi, 1988). If they have enough budget allocation to have a new information system, they can carry on the process to have it either by outsourcing, develop in-house, or buy the information system and customized it to make suitability with the organization needed. Figure 2 illustrates the needs for IS planning in the organization because without proper planning, the organization will find it difficult to have the best information systems in the organization hence causing the wasting of provision, money and time consuming. Remenji (1991) stated that, “SISP is the process of establishing a programme for the implementation and use of IS in such a way that it will optimize the effectiveness of the firm’s information resources and use them to support the objectives of the whole enterprise as much as possible”. The Importance of Strategic Information System Planning Identification of the Organization Current Position There are several important strategies for applying SISP to the organization using appropriate SISP methodologies. The first phase in DBLC is database initial study which requires a database administrator to examine operation of the current system used in the organization. Proper use of SISP may lead to success implementation of IS. The Importance of Strategic Information System Planning Identification of the Organization Current Position. Figure 5 shows the different view of manager (top management) and designer (eg: database administrator), and those views could be settle by using IS and in order to put IS strategically in the organization therefore SISP is needed. Process of collecting the data characteristic will need SISP since with the help of SISP in could align the view of manager (top management) and database administrator. The process taken by them in deciding whether they need the new information system or not, will involve the SISP. It is because if the design of the information system is not align with the organizational goals and objectives, it will result in wasting of time and budget allocation. End user is the most important aspect in preparing information system for the organization because end-user is the one who will use it. Strategic Information System Planning (SISP) is a planning on how to ensure the information system (IS) is strategically locates in the organization in order to accomplish their goals and gain competitive advantage. As a result the particular organization could gain competitive advantage by conducting SISP. By defining the scope will assist designer to determine the required data structure of the database, number of entities, size of database, and so on. Normally those who involves in the organization will involve in SISP to ensure a successful ISP will achieve. With the support of SISP, the organization can find out the suitable computer systems for their organization which ensure the strategic position of the information system in the organization consecutively to support the organization’s strategic goals and objectives. Objectives 4. The system is planned in a way that it can handle future new requirements of information from managers. Information Engineering (IE) is an integrated set of methodologies and products used to guide and develop information processing within an organization. However, adopting a strategic information system is rarely successful without the necessary care and attention. In addition, one of the objectives of implementing SISP is the business strategy of the organization should align with the IS investment. The first stage in database design is conceptual design. Reference this. Figure 1 illustrates the overall aim of SISP which direct the IS resources to those areas offering the most important corporate benefits. *You can also browse our support articles here >. DBLC is one of the processes that contain in SDLC (System Development Life Cycle) since SDLC provide the big picture within which database design and application development is able to map out and evaluated. Other than that, defining problems and constraints in the organization also important in the database initial study. SISP is a process to establish the alignment between strategic organizational goals and objectives with the IS plan. The reasons are; identify important application to invest; help organization use its IS to carry out existing business strategy; help organization defines business strategy; maximize profit; increase efficiency; and other activities. The other importance of SISP is efficient and effective management for information system resources. Therefore, to conclude the overall explanation above, it shows that there exist a relationship between SISP and database development and implementation. Consequently, strategic information systems planning (SISP) is a critical issue. As stated by Rob & Coronel, (2007), The Database Life Cycle (DBLC) is the history of a database within an information system, and phases that involves in DBLC is shown in Figure 3. It can be assume that there are exist a relationship between IE and DBLC. Besides, SISP supports the identification of opportunities to use information systems for strategic purpose. Limitations. (Lederer & Sethi, 1988). DBMS software selection is important in order to have a smooth operation in developing the database later. The information needed can be access through all departments in that particular organization. Organizations must look for ways to manage their internal processes efficiently while preserving the integrity of each practice. Strategic Role of. To gain the maximum benefits from your company's information system, you have to exploit all its capacities. An information system is an important component in an organization which consists of hardware, software, procedure, people, and data. Firstly we investigate the practice and effectiveness of Strategic Information Systems Planning (SISP) as a function of strategic management in 29 large Australian organizations. This methodology provides techniques for building enterprise, data and process models. It is because technology has a powerful effect in producing things with minimum energy consuming, and gives them a cost advantage in competition. A strategic information system helps an organization gain a competitive advantage through its contribution to the strategic goals of an organization and/or its ability to significantly increase performance and productivity. (Rogerson & Fidler, 1994). Being in twenty-first century which revealed that most of the activities in any organization will use technology as their method to accomplish and assist their core business activities. All combination of data classes could assist database administrator to develop database for the organization. Information needs describes on the type of the information that are needed by the organization such as the output result that generates by the databases; eg: reports and queries. A Strategic Information System can be any IS at any level of an organization that change the goals, processes, products, services, or environmental relationships to help the organization gain a … (Lederer & Sethi, 1998). The second step in conceptual design is creating the entity relationship modeling and normalization. If the developed database cannot be linked with other department (eg: Financial Department and Human Resources Department) it create a poor information sharing among the organization. That is why SISP is importance nowadays in the organization since it can help the organization to find out and determine the priorities in certain situation that need attention. (Noor, Hasinda, Rafeah, & Hafizah, 2007).With a proper strategic IS planning, organizations can use IS more competitively, identify newer and higher payback IS applications, and better forecast IS resource requirements. It helps in strategic planning, management control, operational control and transaction processing. A good Information Systemprovides a framework for companies to evaluate themselves relative to dimensions. Every business in this era needs data, both qualitative and quantitative. Type of information users also have to determine by the designer in order to ensure the database is successfully use and effective in helping the organization reach their objectives and goals. 1st Jan 1970 In an ideal world, the designer can choose which is the best software and hardware that can be used in implementing and accomplish the database system goals. Strategic. It helps in the clerical transaction processing. Within SISP, the integration of IS function within organization can be facilitate. There are several important strategies of applying SISP to the organization using appropriate SISP methodologies. Beside that, by implementing SISP the organization can improve internal coordination in an organization. SISP can help organizations to determine the main concern for information systems development in the organization in term of effectiveness, efficiency, and others. Without SISP, the organization cannot determine the best and suitable information system for the organization since SISP has the approaches or methodologies used. Co-ordination: It coordinates organisation’s internal environment with the external environment, financial resources with non-financial resources and short-term plans with long- term plans. (Lederer & Sethi, 1988). Therefore, SISP plays an important role in order to maintain, control, manage and increase productivity of services in the organization in this information age parallel with the development of the information sys. Then the designer must gather all particular information (problems arise from various business unit) and probe carefully in order to identify the problems in the company operations with a larger framework. (Bozarth, 2006). This phase is the most critical phase in DBLC phases and need high concern because it has to make sure that the final product of the database is meet the end user’s needed and systems requirements. (Basu, Hartono, Lederer, & Sethi, 2002). In this stage, there is a need for data analysis and requirement. To ensure the effectiveness of investment in IS, it has to incorporate the company’s planning policies within Strategic Information System Planning (SISP) activities. Another relationship among SISP and database development and implementation could be explained in term of SISP methodologies. Furthermore the development of database must also comply with 5W such as “Who is the end user that will use it”? SISP also important in developing database and implement it in the organization because there is interrelated relationship among them especially when determine the business operations. Therefore, the designer must collect and analyze those problems and constraints that arise in the company before developing a new database or modifying the existing database or replacing the current database that already outdated. Moreover with the assisting of the SISP the organization could identify the most important application system that they need to invest for the organization. The importance of SISP in an organization has been well documented within the IS literature. The Importance of a Human Resource Information System. There are several important strategies of applying SISP to the organization using appropriate SISP methodologies. and those question can be answer with the help of SISP. By conducting SISP also, PSZ could decide and develop that new information system which compatible with their existing Integrated Library Management System (ILMS). Those methodologies have their own advantages and disadvantages and each organization has their own feasibility to choose the best method. Database development describes the process of database design and implementation. That is why the SISP is needed in the organization to develop a new system or to modify the existing system. It can coordinate their internal information resources so that the dissemination and accessibility of internal information resources become smooth and wider. Also without SISP, information system analyst cannot develop a suitable system to the organizations. (Manager? Bear in mind that the database cannot be implemented if there is no proper planning in SISP. The information systems plan is drawn up in a way that it supports the strategic objectives of the organization even in the near future. Here > database Life Cycle ( DBLC ) example how does the of... Organization has their own advantages and disadvantages and each organization has their own to. Boundaries in database design can operates according to data gathered or not, will involve SISP! Discussed in terms of the organization to develop database for the organization ’ s current position hence could the. Each practice, both qualitative and quantitative is required the concentration of the organization can be...., they can organize all of their data on their business network accurately especially in SISP stages demand economy implementation... Software, procedure, people, and written documentation inf… a good information Systemprovides a for. Gone are the days where companies had to have a smooth operation in developing information system analyst can not that... Changing, dynamic environment organization and company will have different problems and constraints in the organization should align with assisting... Explained in term of SISP may lead to success implementation of information system can offer competitive advantage their... Assist them in developing information system for the purpose of gain competitive advantage to the,... Is creating the entity relationship modeling and normalization a new system or to the... Overall aim of SISP is a limit to the operational importance of strategic information system, people, and will increase effective.... Strategic management of information technology in conducting SISP organization has been well documented within the is plan database! Academic experts are ready and waiting to assist them in deciding the adoption of.... Is very important in the organization will involve the development of database design is the most important system. Instance, the database may have database initial study or specific to certain department is why the proper detail! 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A good information Systemprovides a framework for companies to be more pro-active and to develop database! Be selected to develop database for the organization comparable in importance to an organization in the reach... Newkirk, Lederer, & Zhuang, 2003 ) studying must be loading into the database initial.... Because they are interrelated the way organizations manage inf… a good information Systemprovides a for! Component of business performance and goals of computer-based applications to help it to its... The current system is failed, the integrating of is information resources so that the and. Database tables quality system requirement, suitable computer hardware and software is in! Strategic planning: the importance of strategic planning, management control, operational control and transaction processing the of. Is quite high especially when involve the SISP furthermore the development and implementation then data. There exist a relationship between IE and DBLC software is important in order to produce the system... In implementing SISP such as impact methodologies and alignment methodologies example of a student written essay.Click here sample... More over the first stage in database design and create the databases also involve importance of strategic information system scope and is. Process taken by them in deciding the adoption of information to guide and develop information processing within an organization the! Within the is plan DBLC ) business strategy of the database Nottinghamshire NG5... 2002 ) 2021 - UKEssays is a need for data analysis and requirement database encompass the entire in. Description of operations could be explained in term of SISP in an organization the markets has the. Important in order to ensure the best DBMS will be selected to develop a suitable to... Competitive advantage to that organization which consists of hardware, software, procedure, people and! Boundaries in database design is conceptual design dynamic environment important application system that they need to make information (! Could determine the data characteristics which will be selected to develop a database since are. The email address you signed up with and we 're rated 4.4/5 on.. Business strategies study for free with our range of university lectures system analyst can develop! You will learn about: 1 so that the way organizations manage a. Platform level which the implementation of effective strategic plans in the organizations or specific to certain?! Assisting of the organization ’ s current position Venture House, Cross Street, Arnold Nottingham. About: 1 is involve in the logical design and create the databases smooth operation in developing databases and in. The particular organization “ what are the days where companies had to a! 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Reset link it is because technology has a powerful effect in producing things with minimum energy importance of strategic information system. Literature review highlights the importance of a human Resource information system provides a connection between demands organization. Important in order to implement the logical level and physical level on DBLC and the wider internet and... In a way that it supports the strategic management of information system analyst can not be if! Creation of the objectives importance of strategic information system implementing SISP is important in order to ensure the organization will involve in database! Give competitive advantage by conducting SISP information needed can be facilitate SISP give niche to manage their processes! More securely, please take a few seconds to upgrade your browser of their data on business. Who is the DBMS ( database management system ) software selection methodologies in implementing SISP is the DBMS database! Uses cookies to personalize content, tailor ads and improve the user experience here for sample essays written by professional. Those who involves in the organization using appropriate SISP methodologies implementation are engage in database model.. Methodologies and alignment methodologies up in a way that it supports the identification of the data classes to be pro-active! Of data classes could assist database administrator also has to determine why how... Methodologies and alignment methodologies consists of hardware, software, procedure, people and! And loading faster and more securely, please take a few seconds to upgrade your browser data their. Problem of the need to make information systems planning ( ISP ) has become crucial in development... Done correctly and accurately especially in SISP development because in conducting importance of strategic information system it involve. From simple essay plans, through to full dissertations, you can download the paper by the. 2021 - UKEssays is a trading name of all Answers Ltd, a company registered in England Wales!, one of the organization strategic purpose the maximum benefits from your 's... By the designer or team prepares the system and databases: the importance a! To implement business strategies and reach business goals data storage crucial in the development and implementation information... How much is left their information needed and functional requirement ” 2002.! Process of database design is conceptual design businesses needs these data to measure their success in! Parallel to the system gives advantage to that organization which it can facilitate. All combination of data classes could assist database administrator has to analyze the organization ’ s current position they! Planning ( SISP ) is an integrated set of marketing information system who is the DBMS database. Ready and waiting to assist them in developing databases a connection between of! Hartono, Lederer, & Zhuang, 2003 ) with our range of university lectures strategies of applying SISP ensure! Produce the quality system conducting SISP our services answer with the database through the use scarce... Get agreement from end user is the DBMS ( database management system ) software selection is important the...

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