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(Wheelen and Hunger, 2011) explained the positive impact of strategic information system as it creates barriers to the entry of the competitors. An organization use this technique in a way that the duplications of the products and services of the company are hard. This creates the barriers for the new company who wishes to offer the similar products as the competitors. Further, it has been evaluated that without using the proper strategies the decision making process can be reactionary which may result in number of mistakes and the company has to bear the expenses. The another positive impact of this technique is that it generates database to enhance the marketing. With the help of data base management strategies an organization is able to edge over its competitors with the generation of database. For an instance, the organization sure database for the controlling and supervision of the purchases done by the consumers. However, (Sidebottom, 2014) critically explained that it is very important to report the strategic information for the previous year so that they can evaluate the performance level of each individual and of the company as a whole. This concept allows the organization to make proper records of the performance of the employees in so that it can help in future context.
Models for Strategic Information System
According to (Wheelen and Hunger, 2011), Porters competitive advantage model can help the organisation to analyse the five factors such ass threats of new entries, threats to substitute of products, bargaining power of the suppliers and buyers. However, the analysis of these five factors allows a company identify the factors which can affect the performance of the industry. However, with the help of this model an organization may get all the information with good management. In addition to this, the stated model helps the company to focus on two factors such as lowering down the cost and differentiated products. Besides this, Porters provides an effective tool for the appropriate analysis named value chain. By considering this theory, the firm is able to focus on nine activities which helps the company to deliver the products to the customers.
Ways to Improve Effectiveness of Strategic Information System for Better Organizational Performance
The company can follow the steps which can help to develop with the effective strategies.
- Environmental Scanning- It is the process in which the data is been collected from different means after evaluating the internal and external factors. This will assist in determining the actual situation of the market so that the strategic plans can be developed according to it.
- Strategy Formulation- It is important to gather number of plans or strategies so that the best one among them can be selected to ensure the accomplishment of the goals and objectives of the company. For the same, the organization can adopt the management information system. With the help of this tool, the company will be able to maintain the important data through which the proper strategies can be formulated.
- Implementation of the strategy- In this step the chosen strategy is been intended to put under action to achieve the goals. Further, it mainly involves the organization's structure, segregating the resources, coming up with decision and lastly to manage the human resource in an effective manner. By considering the information system methods like MIS, customer relation management the company will be able to implement the strategy in an effective manner.
- Use of software: The organizations can use software like MYOB, Reckon and Saasu. These software will allow the organization to properly manage the data and information in the work premises.
From the above literature review it can be concluded that to grow and develop the organization, it is important to have an efficient strategic information system. This will help the company to make proper trace of the record so that it can implement its strategies in an effective manner. Further, it has also been evaluated that an effective management of the plan will assist in enhancing the performance level of the company. Hence, several methods are been determine to improve with the effectiveness of the strategy.
Books and Journals
Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge University Press.
Liao, S. H. and Wu, C. C., 2010. System perspective of knowledge management, organizational learning, and organizational innovation. Expert systems with Applications. 37(2). pp.1096-1103.
Liao, S. H., Chang, W. J. and Wu, C. C., 2010. An integrated model for learning organization with strategic view: Benchmarking in the knowledge-intensive industry. Expert Systems with applications. 37(5). pp.3792-3798.
Melville, N. P., 2010. Information systems innovation for environmental sustainability. Mis Quarterly. 34(1). pp.1-21.
Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy. Pearson Education India.
Zott, C. and Amit, R., 2010. Business model design: an activity system perspective. Long range planning. 43(2). pp.216-226.
Sidebottom, J., 2014. 10 ways to improve strategic planning. [Online]. Available through: <http://www.csemag.com/single-article/10-ways-to-improve-strategic-planning/9ad4ba79ad91a871b92614c03c9636a5.html>. [Accessed on 16th December 2016].