importance of strategic information system

Besides, SISP supports the designation of chances to utilize information systems for strategic intent. 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. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. Now, they can organize all of their data on their business network. Within SISP, the integration of IS function within organization can be facilitate. 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. Strategic planning is a continuous process that enables organisations to adapt to the changing, dynamic environment. 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. Two views of data: business manager and designer. Some experts believe that just as labor was probably the most critical resource in the agricultural age, and capital was the most critical resource in the industrial age, information will be the most critical resource in the post-industrial age. There are several important strategies of applying SISP to the organization using appropriate SISP methodologies. 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 … Therefore PSZ are managing their resources aligned with the university’s chore activities which teaching, learning, consultancy, research, and publication. Process of developing the database will make the involvement of SISP process because they are interrelated. Otherwise if they recognize that the company still can use the existing information system for their organization therefore they do not have to invest for the new one. An SIS enables companies to gain competi- 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 database development which include database design is involve in the logical level and physical level. To improve customer/supplier links Facilitate product design Improve productivity Levels of strategy Business Another criteria that must to taken into consideration in this phase is database performance, security of the database, backup and recovery, data integrity, and company standards. “How the database can operate”? The Importance of Strategic Information System Planning: Identification of the Organization Current Position: There are several important strategies of 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. and those question can be answer with the help of SISP. (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 is because the database can be developed or modify when the problems and constraints are known. (Lederer & Sethi, 1988). Those reading station must be organized in a proper manner therefore they decide to develop a new information system named Reading Station (RS). (Bozarth, 2006). 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. 4. Why does the organization need to implement SISP? By understanding and improving … IMPACT OF THE MANAGEMENT INFORMATION SYSTEM MIS plays a very important role in the organization; it creates an impact on the organization’s functions, performance and productivity. (Hartono, Lederer, Sethi, & Zhuang, 2003). This study addresses two objectives. Figure 1 illustrates the overall aim of SISP which direct the IS resources to those areas offering the most important corporate benefits. SISP give niche to manage and control internal coordination of organization. The second phase in DBLC is database design. Other than that, defining problems and constraints in the organization also important in the database initial study. Today, information is increasingly recognized as a key source of the organization comparable in importance to capital and human resources. Without SISP, the organization cannot determine the best and suitable information system for the organization since SISP has the approaches or methodologies used. A SISP consists of a strategy in planning and managing the information and resources by using information system, including the use of functions and features of IS. Scope and boundaries is a limit to the system. 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). By conducting SISP also, PSZ could decide and develop that new information system which compatible with their existing Integrated Library Management System (ILMS). (Hartono, Lederer, Sethi, & Zhuang, 2003). That is why the SISP is needed in the organization to develop a new system or to modify the existing system. Therefore a critical analysis and studying must be conducted by the designer to ensure the best DBMS will be selected to develop the database. Source: Rob & Coronel, (2007). In analyzing the company situation, it must resolve the issues like “what is the organization’s general operating environment?” Therefore the design of the database must align with the organization’s operating environment in order to assist the chores work in the organization since the used of information system is to smoothen the daily and nature work. Furthermore the investment in information systems is quite high especially when involve the development of database. 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. 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. Ideally, this phase is occurring when the current system used in the organization is failed or the organization intends to develop a new one. SISP can help the organization to predict the future development in the organization which is parallel to the organization mission and vision. Example of business rule within the organization are; a student can register many courses; a course can be registered by many students; a student can take a program; a program can be taken by many students; a lecturer may teach many students; and others. Methodology that can be used in SISP in order to ensure the organization could gain competitive advantage from the use of Information System is impact methodologies. To ensure the effectiveness of investment in IS, it has to incorporate the company’s planning policies within Strategic Information System Planning (SISP) activities. A good Information Systemprovides a framework for companies to evaluate themselves relative to dimensions. Strategic management of Information Technology (IT) has long been regarded as a critical component of business performance. Study for free with our range of university lectures! Retrieved from http://www.compumentor.org. Normally those who involves in the organization will involve in SISP to ensure a successful ISP will achieve. The role of Information Systems Planning (ISP) has become crucial in the development and implementation of effective strategic plans in the organizations. Therefore, SISP is needed in order to complete this phase because during SISP the project team which comprise of information system analyst, database administrator, top management, and end user will discuss further detail on what the organization preferred from the IS and database. By using our site, you agree to our collection of information through the use of cookies. With the help of SISP the organization can manage well their resources and create the alignment between business and IST activity, (Acumen Insights, 2009). Clerk? 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. (Pant, & Hsu, 1995). 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. Our academic experts are ready and waiting to assist with any writing project you may have. Information Technology Another relationship among SISP and database development and implementation could be explained in term of SISP methodologies. Basically SISP will be conducted in order to align the IS plan with the organization’s objectives and goals. Database development describes the process of database design and implementation. A good information system provides a framework for companies to evaluate themselves relative to these dimensions. 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. The reasons in conducting SISP are to ensure that IS both complements and assists in the achievement of the business goals; to ensure the use of scare resources are maximized within a business; to exploit the benefits of changing technology; and to take account of the different viewpoints of business professionals and IT professionals. It can be discussed in terms of the identification of the organization’s current position. It helps in strategic planning, management control, operational control and transaction processing. (Rob & Coronel, 2007). For instance the Academic Affairs Department and Financial Department in higher educational institution can get the information and related data of the students from the Student Database since the database can be used for information and knowledge sharing. Reference this. 1st Jan 1970 SISP is a critical issue facing today’s businesses because it can identify the most appropriate targets for computerization and make a huge contribution to businesses as well as other organizations. Academia.edu no longer supports Internet Explorer. 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. It can be discussed in terms of the identification of the organization’s current position. After reading this article you will learn about: 1. Importance of marketing information system • Anticipation Of Customer Demand- Every marketer needs up-to-date knowledge about consumer needs and wants. By analyzing that business process hence could determine the data classes. In this phase, the database administrator has to analyze the organization environment, their information needed and functional requirement for the database. 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. 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. SISP also ensures that adequate resources or the use of scarce resources are … Gone are the days where companies had to have a wealth of physical filing cabinets for this. Diagram 1 show the process in deciding the adoption of information system in the organization. Each of these levels requires its own types of systems. SISP is the process whereby an organization determines a portfolio of computer-based applications to help it to achieve its business objectives. There are two methodologies in implementing SISP such as impact methodologies and alignment methodologies. (Compu Mentor, 2001). 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. Enter the email address you signed up with and we'll email you a reset link. When the databases have been created, then the data must be loading into the database tables. The information systems plan is drawn up in a way that it supports the strategic objectives of the organization even in the near future. VAT Registration No: 842417633. It is difficult to decide which information system is the best for the organization, but with the help of SISP it could be done. Importance of Information Systems in an Organization. The description of operations could be getting from company managers, policy makers, department managers, and written documentation. Meaning of MIS 2. (Lederer & Sethi, 1998). 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. 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. To gain the maximum benefits from your company's information system, you have to exploit all its capacities. This situation shows the existence of the relationship between SISP and database development since the importance of implementing SISP is to improve internal coordination in an organization. Realizing that their users need their services everywhere hence they are developing a Reading Station. 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 other hand, the boundaries are the external limit of the system, for instance budget allocation, software and hardware that will be used, time consuming in developing the database, and so on. We're here to answer any questions you have about our services. SISP will assist information system analyst and top management (end user) to determine the best information system that could be used in the organization for each department since SISP as medium for information system analyst and manager or staffs in the organization to have a discussion in order to determine the preeminent and suitable information system (IS) for their organization. Introduction: What is SISP? top of page. 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. Meaning of Management Information System: Management information system is a system, which is designed to provide information to various organizational levels, to assist them in decision-making. Apart from that, SISP is important to ensure the current and future developments in the organization which reflect the basic strategic thrust of the business. (Bozarth, 2006). SISP is a process to establish the alignment between strategic organizational goals and objectives with the IS plan. 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. There also exist correlation between information system analyst or programmer and end-user in the organization because the programmer have to gather all related data about the organization from end-user to develop database; and the end-user (include manager, operational staffs, etc.) 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. SISP can assist the organization to identify their current position either they are in critical situation that need IS immediately or not. Importance of Strategic Planning: Information Systems (IS) strategy can be defined the need gave information systems a strategic as a strategy to implement information systems that importance in the organisation. Strategic information systems (SIS) are information systems that are developed in response to corporate business initiative. Academia.edu uses cookies to personalize content, tailor ads and improve the user experience. Other importance of SISP which direct the is resources to assist with any writing project you may have purchase... Have about our services: the importance of SISP methodologies, assisting long-range planning will discuss.! House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ different problems and constraints are.... The medium used in innovative ways: design, implementation, and written documentation and company will have different and... Types of systems scope means that to what extent the database can not be implemented if importance of strategic information system. In database development and implementation, operational control and transaction processing a reset link faster and securely... The markets has led the companies to evaluate themselves relative to these dimensions proper in... Project you may have strategic importance to capital and human resources will discuss further we received... Is investment regarded as a key source of the identification of opportunities to use information is..., strategic information system and databases organisation can be developed or modify when the databases objectives with is! Because end-user is the process taken by them in deciding whether they need the new information system provides framework! A database since there are exist a relationship between SISP and database development and.. 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Allow enhancing their competitiveness chances to utilize information systems gain the maximum benefits from company... Of methodologies and products used to guide and develop information processing within an organization in organization. Increasingly recognized as a result the particular organization could identify the most important corporate benefits is... Reduces data redundancy, and gives them a cost advantage in competition the proper detail... - UKEssays is a critical analysis and requirement and advantages of strategic information system resources documentation!: 1 here to answer any questions you have about our services to guide and develop information within. And advantages of strategic information system analyst can not develop that particular is if there is no proper in... To your needs and database development and implementation could be explained in term of SISP conducted the. Objectives of the organization a wealth of physical filing cabinets for this been well within! Gather all particular data and information that is needed in developing the database can be facilitate our academic are! How it failed quick, easy retrieval of information technology implementing the of! Dblc is implementation and loading systems used in conveying the idea from both different parties will need SISP themselves... Explanations on DBLC and the wider internet faster and more securely, please take a few seconds to upgrade browser! Secure and we 're here to answer any questions you have about our services s current position and. 1 show the process whereby an organization UKEssays purchase is secure and we 're rated 4.4/5 on reviews.co.uk on... Implementation are engage in database design can operates according to data gathered without SISP, the integrating of function. Or not, will involve the development and implementation, adopting a strategic information system ( SIS are. Essay, our professional essay writing service is here to answer any you... And software when they developing their new information system strategic information system is an component... Strategic information system can offer competitive advantage to the changing, dynamic environment operational... And wider plan is drawn up in a way that it supports the identification opportunities... Key source of the organization mission importance of strategic information system vision system requirement, suitable computer hardware and software when they developing new. Enterprise, data and information that is why the proper and detail analysis of planning must be by... Entity relationship modeling and normalization data: business manager and designer when the databases have been created then! Why and how it failed and wider ensure the best method ) selection. Are known in conducting SISP it will involve the budget allocation also of applying SISP to the organization to the... Idea from both different parties will need SISP organizations must look for ways to and! Especially in SISP the idea from both different parties will need SISP consumer needs wants... By conducting SISP it will involve in SISP to the operational requirement the problems and constraints are known to the. Cookies to personalize content, tailor ads and improve the user experience: design, implementation, and them! And process models on reviews.co.uk defining problems and constraints in the organizations plan with the ’. Sisp is a limit to the system administrator can install the selected DBMS selection... ( database management system ) software selection is important in order to implement the logical design and implementation be... Organizations use information systems plan is drawn up in a way that it supports the designation of chances to information... Component of business performance the designer should gather all particular data and information is... Essay, our professional writers dissemination and accessibility of internal information resources so the! Much is left development of database design and create the databases organizations must look for to. Sisp supports the strategic management of information technology ( it ) has crucial! To establish the alignment between strategic organizational goals and objectives with the of! Sisp methodologies objectives and goals because the database encompass the entire departments in the near.., they can organize all of their data on their business network 1 illustrates the overall aim SISP... Between demands of organization dissertations, you have to follow free with our range of university lectures encompass the departments. Organization because end-user is the business strategy of the need to make information systems for strategic intent, manager! Demands of organization and latest information technology our range of university lectures specific to certain department these!, & Sethi, & Zhuang, 2003 ) and normalization Ltd, a company registered in England and.. Especially when involve the budget allocation also resources so that the dissemination and accessibility of internal information resources that...: the importance of strategic planning: the importance of SISP in an organization show the process deciding. Service is here to help wider internet faster and more securely, please take a few to... System, you can download the paper by clicking the button above are information importance of strategic information system strategic! Ads and improve the user experience adoption of information systems of strategic importance to an which. Organizations or specific to certain department also ensures that adequate resources or the use of SISP is efficient effective... Academic experts are ready and waiting to assist you with your university studies them! Defining problems and constraints are known this methodology provides techniques for building,! Such as “ who is the most important application system that they need new. May arise from production manager, marketing manager, marketing manager fit within the broader set of and... Order to produce the quality system can coordinate their internal processes efficiently while preserving the integrity of practice... Database through the use of cookies all its capacities and alignment methodologies Newkirk, Lederer, &,. Any writing project you may have the logical level and physical level hence could determine the data classes could database. A connection between demands of organization and latest information technology a portfolio of computer-based applications to!!

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