John B. Lacson Foundation Maritime University Arevalo), Inc.

GRADUATE SCHOOL
Iloilo City

Module 5

The Flow of Strategic Information

Lesson 1 Strategic Management Process

Introduction

Strategic management is all about identification and description of the strategies that
managers can carry so as to achieve better performance and a competitive advantage for their
organization. An organization is said to have competitive advantage if its profitability for all
companies in its industry.

Strategic management is the concept of identification, implementation and management

of the strategies that managers carry out to achieve the goals and objectives of their organization.

It is a bundle of decisions that a manager has to undertake which directly contributions to

the firm’s performance. The managers responsible for strategic management must have a
thorough knowledge of the internal and external organization environment to make the right
decision.

Learning Outcomes

At the end of the lesson, the students shall have been able to:

1. define Strategic Management process.

2. identify the basic concept of strategy management.
3. evaluate the importance of strategic management process.
4. explain the steps of strategic management process.
5. generalize the steps of strategic management process.

Pretest

Multiple Choice: Select the correct answer from the choices given below each question. Write
the letter of your answer on the blank provided before each number.

__________1. A branch of management that deals with an organization’s strategic objectives.

a. strategic Management
b. strategic Formulation
c. strategy Monitoring
d. strategy Implementation

__________2. An analysis that determines the Strength, Weakness, Opportunities and Threats.
a. pestle Analysis

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b. fishbone Analysis
c. SWOT Analysis
d. ISHIKAWA Analysis

__________3. Involves the key evaluation strategies like taking into account the internal and
external factors that are the root of the present strategies and measuring the team
performance.
a. strategy Implementation
b. strategy Monitoring
c. strategy Formulation
d. initial Assessment

__________4. The first and foremost stage in the process of strategic management requires the
organization to set the short term and long-term goals it want to achieve.
a. situational Analysis
b. initial Assessment
c. strategy Formulation
d. setting the goal

__________5. Describes why an organization is operating that helps provide a framework

within which the strategies to achieve its goals are formulated.
a. vision
b. mission
c. goals
d. objectives

Reading

Strategic Management refers to a branch of management that deals with deals with an
organization’s strategic objectives. This may include the development of the organization’s
vision, outlining its operational objectives and coming up with and implementing the
organization’s strategies. It may also include the formulation and application of deviation
corrective measures where necessary. Strategic management process should not be confused with
strategic planning process, a related but completely different branch of management. Strategic
management process is a continuous culture of appraisal that a business adopts to outdo the
competitors. Simple as it may sound, this is a complex process that also covers formulating the
organization’s overall vision for present and future objectives.

The way different organizations create and realize their management strategies differ. As
a result, there are different models of SMP that the organization can adopt. The right model
depends on various including:

The existing culture of the organization

Market dominance of the organization
Leadership style

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The organization’s experience in creating and implementing SMPs

Industry and competition

Strategic management is nothing but planning for both predictable as well as unfeasible
contingencies. It is applicable to both small as well as large organizations as even the smallest
organization face competition and, by formulating and implementing appropriate strategies, they
can attain sustainable competitive advantage.

It is a way in which strategists set the objectives and proceed about attaining them. It
deals with making and implementing decisions about future direction of an organization. It helps
us to identify the direction in which an organization is moving.

Strategic management is a continuous process that evaluates and controls the business
and the industries in which an organization in involved; evaluates its competitors and sets goals
and strategies to meet all existing and potential competitors; and then reevaluates strategies on a
regular basis to determine how it has been implemented and whether it was successful or does it
needs replacement.

Strategic Management gives a broader perspective to the employees of an organization

and they can better understand how their job fits into the entire organizational plan and how it is
co-related to other organizational members. It is nothing but the art of managing employees in a
manner which maximizes the ability of achieving business objectives. The employees become
more trustworthy, more committed and more satisfied as they can co-relate themselves very well
with each organizational task. They can understand the reaction of environment changes on the
organization and the probable response of the organization with the help of strategic
management. Thus, the employees can judge the impact of such changes on their own job and
can effectively face the changes. The managers and employees must do appropriate things in
appropriate manner. They need to be both effective as well as efficient.

One of the major role of strategic management is to incorporate various functional areas
of the organization completely, as well as, to ensure these functional areas harmonize and get
together well, Another role of strategic management is to keep a continuous eye on the goals and
objectives of the organization.

The basic Concept of Strategy Management Includes:

1. Strategy Management – Definition

2. Components of Strategy Management
3. Process of Strategy Management

The basic concept of strategic management consists of continuous process of planning,

monitoring, analyzing and assessing everything that is necessary for an organization to meet its
goals and objectives. In simple words, it is a management technique used to prepare the
organization for the unforeseeable future. Strategy management helps create a vision for an
organization that helps to identify both predictable as well as unpredictable contingencies. It

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involves formulating and implementing appropriate strategies so the organization can attain
sustainable competitive advantage.

Components of Strategy Management

Strategic Intent

Strategic intent of an organization clarifies the purpose of its existence and why it will
continue to exist. It helps paint a picture of what an organization should immediately do to
achieve the company’s vision.

Mission

Mission component of strategy management states the role by which an organization

intends to serve its stakeholders. It describes why an organization is operating that helps provide
a framework within which the strategies to achieve its goals are formulated.

Vision

The visual component of strategy management helps identify where the organization
intends to be in the future. It describes the stakeholder dreams and aspirations for the
organization.

Goals and Objectives

Goals help specify in particular what must be done in order to attain an organization’s
mission or vision. Goals make the mission component of strategy management more prominent.

Process of Strategy Management

The strategic management process includes 7 steps:

1. Setting the goal- The first and foremost stage in the process of strategic management
requires the organization to set the short term and long-term goals it wants to achieve.
2. Initial Assessment- The second stages say to gathers as much data and information as
possible to help state the mission and vision of the organization.
3. Situation Analysis- It refers to the process of collecting, scrutinizing and providing
information for strategic purposes. It helps in analyzing the internal and external
environment that is influencing an organization.
4. Strategy Formulation- Strategy formulation is the process of deciding the best course
of action to be taken in order to achieve the goals and objectives of the organization.
5. Strategy Implementation- Executing the formulated strategy in such a way that it
successfully creates a competitive advantage for the company. In simple words,
putting the chosen plan into action.

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6. Strategy Monitoring- Strategy Monitoring involves the key evaluation strategies like
taking into account the internal and external factors that are the root of the present
strategies and measuring the team performance.
7. SWOT Analysis- It helps in determining the Strengths, Weaknesses, Opportunities
and Threats (SWOT) of an organization and taking remedial/corrective courses pf
actions to fight these weaknesses and threats.

Why is Strategic Management Process Important?

The primary purpose of strategic management process is to help the organization achieve
a sustainable strategic competition in the market. When property conceived and implemented,
SMP creates value for the organization by focusing on and assessing opportunities and threats,
then leveraging its strengths and weaknesses to help it survive, grow, and expand as well as.
Strategic management process can help a business achieve this by:

1. Acting as the reference for any major decisions of the organization.

2. Guiding the business to chart its future and move in that direction. SMP involves
formulating the organization’s goals, fixing realistic and achievable objectives, and
ensuring that they are all aligned with the company’s vision.
3. Assisting the business to become proactive, not reactive. With the SMP, the business
can analyze the competitor’s actions vis-à-vis market trends and come up with the
steps that must be taken to compete and succeed in the market.
4. Preparing the organization for any potential challenges and explore possible
opportunities that the business must pioneer in. The strategic management process
steps also involve identifying the best ways to overcome the challenges and exploiting
new opportunities.
5. Ensuring that the organizations cope with the competition in a dynamic environment
and survives in an uncertain market.
6. Helping in the identification and maximization of the organization’s competitive
advantages and core competencies. These are responsible for the business survival
and future growth.

Steps of Strategic Management Process

There are five strategic management process steps that must be followed in their
chronological order.

1. Goal setting

This is essentially clarifying the organizations vision. The vision will include short-term
and long-term objectives, the processes by which can be accomplished, and the persons
responsible for implementing each task that culminates in the set goals.

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2. Analysis

Analysis involves gathering the data and information that is relevant accomplishing the
set goals. It also covers understanding the needs of the business in the market and examining any
internal and external data that affect the organization’s goals.

3. Strategy Formulation

A business will only succeed of it has the resources required to reach the goals set in the
first step. The process of formulating a strategy to achieve this may involve identifying which
external resources the business needs to succeed, and which goals must be prioritized.

4. Strategy Implementation

Since the purpose of strategic management process is to propel an organization to its

objectives, an implementation plan must be put in place before the process is considered viable.
Everyone in the organization must understand the process and know what their duties and
responsibilities are in order to fit in with the organization’s overall goal.

5. Evaluation and Control

The evaluation and control actions for the strategic management process include
performance appraisal as well constant review of both internal issues. Where necessary, the
management of the organization can implement corrective actions to ensure of the SMP.

In order for a business effort to have the most impact on a business bottom line, strategic
management process must be employed. This will also go a long way in helping a business to
survive stiff competition in the market.

Strategic planning can be a vital tool for a business as it provides companies with
measurable objectives that aid in daily decision-making. This planning process helps prevent
companies from aimlessly performing business tasks without set priorities or a real purpose.
Without a clear vision in mind for the future, employees may make wrong decisions for their
business and employees may be confused about their position in the company. A strategic
planning process is designed to drive business in the right direction and promote the exchange of
useful ideas between people with similar goals.

The strategic planning process is essentially a list of steps that managers should follow to
complete and implement a strategy within a company. There are several key components that
make up the strategy planning process, including common phases like strategic analysis and
strategic formulation, along with implementation and monitoring. Although the strategic
planning process requires great patience and can be a challenging undertaking, most business can
agree that the process can yield highly rewarding results. Here is a closer look at the individual
stages of the strategic planning process and how they affect your business.

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1. Identify your strategic Position

The first prepares you for the rest of the strategic planning process. To achieve your goals,
you, you must first have a clear vision. Start by defining both your short-term and long-term
objectives. In short, what don you hope to achieve? Next, determine what steps you will take to
accomplish these objectives. When identifying your strategic position, remember that your goals
should be realistic and measurable. For help with this step, look back to your mission statement,
corporate values, and work culture.

2. Gather People and Information

Once you have established your strategic position, you will want to bring in the people
who will be involved in the planning process. You will also want to bring in as much up-to-date
information to the table as possible. Ensure that any data you use is accurate so that you make
informed decisions backed up by facts. Once you have people and information to draw from,
examine any internal or external issues that could possibly affect your objectives. It may be useful
to ask other people in your business for their input, such as employees, customers, or partners.

3. Perform a SWOT Analysis

SWOT, which is an acronym for strengths, weakness, opportunities and threats, acts as a
powerful tool during the strategic planning process. A SWOT analysis is often performed to help
identity the strengths and weaknesses of as business, as well as identity any opportunities and
threats, you can work together to develop new goals that will help your business face these
possibilities in a more positive way. A SWOT analysis can also lead you in the right direction
and towards your goals.

4. Formulate a Strategic Plan

Once have successfully identified your strategic position and have a set of goals that align
with your company’s mission, you can begin working on your strategic plan. When developing
your plan, consider which initiatives will have the greatest impact on your business and which
will help improve your position the most. Also consider which initiatives are most urgent and
put these at the front of the line. To ensure that your strategic plan is working, you will need to
determine the best way to measure your progress. With measurable goals you can visibly see
improvements as they happen.

5. Execute our Strategic Plan

Once you have your strategic plan in place. You are ready to implement it. This step is
the action phase of the strategic planning process. Start by making everyone involved in the plan
aware of your strategy. Ideally, you want to distribute tasks among different individuals or
department to prevent one person or group of people from becoming overwhelmed. Also take the
time to check back with these individuals or groups to ensure that you are staying on track. If
you find that you are not meeting your objectives, make any necessary changes.

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6. Constantly Monitor Performance

Your strategic planning process will not be effective unless everyone is doing their part.
This requires you to constantly monitor and manage performance and tweak any components
that are not leading to satisfactory results. It is also important to hold those involved in the
strategic planning process accountable for their assigned tasks. Know that it may be necessary to
repeat the strategic management process if any corrective actions you take are not successful.
Continue to collect new and relevant data to help with any future strategic planning that may
occur.

Successful business has a plan in place and know where they are heading in the future. If
you are not yet one of these businesses, you can be. The strategic planning process is specifically
designed to lay out your company’s goals and define why they are important. Strategic planning
can also help you uncover ways to improve performance in the workplace and meet your unique
objectives. It is the ultimate way to help your business reach its full potential. Best of all, your
strategic plan can be continuously altered to meet your new and changing needs. For more
information about the strategic planning process, speak to the benefits consultants at BBG today.

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References

Deephouse, D. L. (1999). To be different, or to be the same? It’s a question (and theory) of

strategic balance. Strategic Management Journal, 20, 147–166.

Fahey, L. (1999). Competitors. New York: Wiley; Walters, B. A., &amp.

Geroski, P. A. (1999). Early warning of new rivals. Sloan Management Review, 40(3), 107–116.

Hitt, M. A., Ricart I Costa, J., & Nixon, R. D. (1999). New managerial mindsets. New York:
Wiley.

Khermouch, G. (2001, March 5). Grown-up drinks for tender taste buds. Business Week, p. 96.

Kuemmerle, W. (2001). Home base and knowledge management in international

ventures. Journal of Business Venturing, 17, 99–122.

https://open.lib.umn.edu/principlesmanagement/chapter/5-7-developing-strategy-through-
external

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Lesson 2 The Flow of Strategic Information System

Introduction

Market Orientation research has accumulated a variety of finding over the past two
decades during which researches have emphasized the importance of information flow within an
organization. Even though market information is very important for the organization’s adaptation
to its environment, the vertical flow of strategy process and knowledge creation theory. Although
these research streams share an interest in information flow with in an organization, they have
remained separate traditions up until now.

Learning Outcomes

At the end of the lesson, the students shall have been able to:

1. explain the meaning of strategic information system.

2. analyze the function of strategic Information Management.
3. illustrate the flow of strategic information system.
4. generalize the concept of organizational information system.
5. describe the types of information flow.

Pretest

Multiple Choice: Select the correct answer from the choices given below each question. Write
the letter of your answer on the blank provided before each number.

___________1. An information system that are developed in respondent to corporate business

initiative.
a. strategic Information Management
b. strategic Information System
c. information Technology System
d. strategic Information Technology System

___________2. Which of the following is not part of strategy framework of corporate

communication?
a. the organization
b. the constituency
c. the message
d. the system

___________3. The movement of instruction and communications within an organization.

a. information or communication flow
b. flow chart diagram
c. Ishikawa diagram

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d. external and internal flow

___________4. Which of the communication flow takes place when the person in top
management and leadership positions share instructions with employees
working the lower levels of the organization?
a. upward information flow
b. horizontal information flow
c. downward information flow
d. diagonal information flow

___________5. The process in which flow of information occurs between a manager and
outside group such as the various financial institutions as banks, financial
organizations or with the vendors and supplier of the business.
a. external information flow
b. internal information flow
c. diagonal information flow
d. horizontal information flow

Reading

1. Strategic Information System (SIS)

Are information system that are developed in response to corporate business initiative.
They are intended to give competitive advantage to the organization. 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.

Strategic Information Management (SIM) is a salient feature in the world of Information

Technology (IT), In a nutshell, SIM helps, business and organizations categorize, store, process
and transfer the information they create and receive. It also offers tools b for helping companies
apply metrics and analytical tools to their information repositories, allowing them to recognize
opportunities for growth and pin point ways to improve operational effecting.

The concept of SIS was first introduced into the field of information system in 1982-1983
by Dr. Charles Viseman, President of a newly formed consultancy called “ Competitive
applications who gave a serves of public lectures on SIS in New York City sponsored by the Data
nation institute, a subsidiary of Data Nation Magazine.

2. Flow of Strategic Information

It is possible to sustain and leverage and even improve the competitiveness of companies
by good flow of strategic information which can provide crucial support in communication of
the company. A good flow of strategic information will improve the efficiency of the
organization and increase the capability to respond faster to environment changes and correct
business decisions.

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The communication flow contains horizontal movement information flow, inward-

outward flow, vertical information flow, and downward information flow. First of all, the
horizontal flow of information occurs between divisions, units, teams or groups within an
organization that are working together to achieve a common task or objective. Second, inward-
outward information flow is information that is sent to and from customers, business partners
and shareholders is vital to the success and survival of an organization. Third, vertical
information is an upward information flow in which information is transferred from a lower level
of an organization to a higher level within an organization. Finally, the downward information
flow involves information being sent down from a higher level of management.

An organization or a company should plan and design an adequate communication

technique to increase communication skills and improve communication efficiency in the
organization/company. Some ways are as follows: First of all, an organization or a company can
set specific strategic goals which will improve the position of the company, rather than more
general goals such as increased profit or reduced costs. Second, an organization or a company
can measure performance in terms of defined goals, and make the information available to those
making strategic decisions. Third, an organization or a company can measure and manage
"intellectual capital", the skill and knowledge base of the company’s workforce. Last, Activity-
based management (ABM), which seeks to evaluate customers and projects in terms of their total
cost and benefit to the organization, rather than assuming that the most important projects are
those bringing the highest revenue.

One of the communication techniques is communication method. An organization or a

company can use different ways to communicate with each other. Like email, it can let coworkers
or supervisors and subordinates connect with each other. For example, a supervisor can send an
information to hundreds or even thousands of subordinates at the same time. Another example is
conferencing, a leader can convene the meeting of the subordinates, they can discuss the
problems about their jobs or relationship with coworkers or supervisors face-to-face.

3. Concept of organizational information flow

Information or communication flow within an organization refers to the movement of
instructions and communications within an organization. There can be several directions in which
it takes place within an organization such as downward, upward, horizontal, diagonal and
external. The direction of information within an organization depends on the size, structure and
the nature of the business. In the case of most of the traditional organizations, the flow of
information occurs in a vertical motion that is in a downward and upward direction. In such
situations, the managers give instructions to the subordinates and hence the flow of information
travels from an upward to a downward direction.

Then, the flow of information also takes place when the communication occurs from the
subordinates to the employees in the managerial positions that lead to a flow of information in
an upward direction. In the case of non-traditional or informal business organizations, like
technology start-ups, the flow of information happens mainly in the horizontal and diagonal
directions. It can be said that this form of information happens in the case of organizations with
a flat hierarchy and there is the need for some form of collaboration.

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Apart from these information flow, there are some unofficial communications in several
organizations like those that occur in the case of company grapevines and this type of information
might take place in the case of both formal and informal organizations. The success of an
organization depends on the effective communication flow or information that happens between
the internal stakeholders as also between the internal and the external stakeholders of the
organization. Therefore, there should be effective communication strategies in place for a
business to succeed in terms of growth, profitability, and sustainability.

4. Types of information flow

Information flow within an organization is extremely important in determining the
success or failure of the business in the long run. For example, it is essential for any type of
business organization to be able to share information with all the employees effectively by the
management. When the management takes an important decision then it should be communicated
to all the staffs that are within the organizational hierarchy.

This flow of information happens in a vertical direction at the time when the management
personnel give some instructions that flow from an upward to a downward direction. The
information must effectively flow from the management personnel to the senior managers,
middle-level managers, lower-level managers, senior executives and executives that are in the
lowest position of the organizational hierarchy. Then there can be a flow of information in
horizontal direction also in the case of communication between peers in an organization or in the
case of organizations that do not have the traditional hierarchical organizational structure.

Organizations with matrix organizational structure can depict signs of the flow of
information in a horizontal direction because there can be various departments that are at the
same level of the organizational hierarchy. Therefore, it is evident that for the success of a
business organization, irrespective of its size and organizational structure it is highly desirable
that the organization is able to demonstrate the effective flow of information within the business
premises and also with the external stakeholders of the business. This will ensure long-term
growth, profitability, and sustainability of the business. So, it can be said that out of the various
business strategies, the strategies for organizational communication are highly important for
ensuring the success of the business establishment in the long run.

5. Downward information flow

This form of information flow takes place when the person in top management and
leadership positions share instructions with employees working in the lower levels of the
organization. Unless there is any request, the top-level management personnel do not expect to
get a response from the lower-level personnel because they expect that the message that has been
shared from the top management will be observed diligently without any question. For example,
when the CEO of a company is changed and some new CEO is appointed in the business then
there is a downward flow of information within the organization.

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Furthermore, in the case of a merger with a competitor, the management undertakes

downward communication strategies where there will be a flow of information from the top to
the bottom. Apart from all these situations, other scenarios where downward communication
takes place are communications that are undertaken through videos, podcasts, blogs, and
speeches within the organization. Another relevant example of downward communication is
when the departmental managers or the line managers in an organization gives the daily directives
to their subordinates regarding their daily professional activities and targets that they ought to
achieve. Interestingly, the downward flow of information can also be in the form of company
handbooks or instruction manuals that are also shared within an organization on various
occasions.

Hence, it is evident that one of the major advantages of downward information flow is
that it enables the organization in sharing information that updates the employees about the major
organizational changes, and new strategic objectives and goals and it also helps in offering
performance feedback within the organization. There are some other key areas where downward
information flow takes place such as undertaking coordination, discuss an official policy such as
public relations and messages that are directed towards enhancing the morale of the workers and
consumer relations.

6. Upward information flow

In this type of information flow, the communication of information flows from the
downward to the upward direction such as from the lower-level employees to the higher-level
employees. This form of communication is also known as vertical communication. We can say
that in modern organizations, vertical flow of information is a very common incident to happen.
For example, there is upward communication in an organization at the time when the workers
report their day’s works to their supervisors or during the times when the team leaders report the
day’s proceedings to their departmental managers.

Upward information flow happens in an organization when communication takes place

in an organization encompassing sharing of progress reports, sharing estimates of budget,
communicating problems and grievances, communication improvement suggestions or
communicating project proposals. On many occasions within an organization, a downward
communication stimulates an upward response. For example, when a manager seeks a
recommendation from the subordinate or inquiries about the probable time when a project will
be completed. Today, many of the organizations encourage prompt upward information flow
through instant feedback from the subordinates without even asking for such feedback from the
juniors.

There are many organizations that even offer prizes and rewards to employees for their
prompt feedback to the superiors through creative solutions. However, the employees need to
feel absolutely confident on the management before taking part in such upward communication
in terms of the event that their contributions will be duly recognized and there will not be any
effort to undermine their efforts. In this context, it is worth discussing that there are
‘whistleblowers’ in many organizations that have been installed for reporting any unethical

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behavior by any employee to the top-level management. This also is a form of upward
communication.

7. Horizontal information flow

The horizontal flow of information happens within an organization when there is an
exchange of information across various departments of the business that exist at the same level.
This is also known as peer-to-peer communication. One of the major objectives of horizontal
communication is to ask for support or achieve coordination in several activities. Employees
functioning at same levels within an organization have the opportunity to work together and try
to solve various problems and achieve the organizational objectives. Here, the working of the
employees occurs in an informal approach and also as and when required.

For instance, the production manager can communicate with the purchase manager for
the purpose of dealing with shipment issues of products within a company. Again, the finance
manager of a company can coordinates with the inventory manager for achieving successful
strategic planning on behalf of the company. Another example of horizontal information flow
can be the process of interaction between two employees that report to the same manager.
However, there are some challenges in horizontal information flow within an organization.
For instance, if one of the managers at the same level of the organization is unwilling to cooperate
and share information with the other manager then that will lead to communication gaps and
naturally, the productivity of the organization will suffer. Often, managers can demonstrate
communal behavior or territorial behavior while interacting with another manager who belongs
to a different background. This will lead to a manager at the next higher-level intervening into
the issue and undertaking downward communication to solve the problem.

8. Diagonal information flow

Diagonal communication or information flow within an organization takes places when
there is a cross-functional communication between staffs working at different organizational
levels. For instance, when the VP of Sales Department shares an email with the VP of
Manufacturing Department seeking information regarding the availability of a product for
shipping then it is an example of horizontal information flow. However, when an email is
forwarded by a sales executive to the VP of Marketing then there is an instance of diagonal
communication within the organization. During the times when there is a flow of communication
from one department to another, the manager of the department that is sending the message
should be kept in the loop.

In this context, we can say that a manager might find himself or herself in an extremely
unsolicited position if he or she is not aware of all the proceedings that have been happening
within the department. This can lead to a devastating situation where there will be a lack of trust
between the employees and there might be a significant influence on the careers of the employees
if the communication protocols are not successfully observed. It is interesting to learn that today,
the diagonal flow of information has been gaining increasing popularity within the organizations
that have matrix organizational structures or much flattened or product-based organizational
structures.

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There are several benefits to the diagonal information flow such as it helps in developing
warm and hospitable relationships between the lower-level and the senior-level employees across
diverse departments of the organization. An informal flow of information within the business is
highly encouraging and it reduces the possibility of the message being tampered with by passing
through additional filters. Finally, diagonal communication flow reduces the workloads of the
managers at different senior-level positions within the business.

9. External information flow

The external flow of information or external communication is the process in which flow
of information occurs between a manager and an external group such as the various financial
institutions such as banks, financial organizations or with the vendors and suppliers of the
business. For example, for the purpose of raising capital for business, the Managing Director of
a company

might need to communicate with the Bank Manager which is a form of external communication
or external flow of information.

A business establishment has to interact with several external stakeholders for the purpose
of ensuring that the daily functions and processes of the business are being undertaken effectively
and at par with the set goals and objectives of the business. The better the communication process
between the organization and the several external stakeholders, the better are the chances of the
organization to gain competitive advantage within the industry.

Therefore, it is undeniable that the long-term success of a business depends not only on
the effectiveness of internal information flow but also on the external information flow. A
business needs to have proper communication with the external stakeholders to achieve long-
term growth, profitability, and sustainability. Now instant assignment help will tell you about
the success factors for efficient information flow.

10. Critical success factors for efficient information flow

For ensuring effective flow of information within an organization it is extremely essential
for the business to achieve the following critical success factors in the communication strategies:
The communication process model should be observed diligently by all the stakeholders engaged
in the communication process. These stages consist of: The sender developing an idea, the sender
formulating the message, the sender choosing a medium of communication, the sender
transmitting the message effectively across the chosen medium to the intended recipient, the
recipient receiving the message and decoding it effectively, and finally, the recipient offering
feedback to the sender such that the communication loop is completed.

The sender of the message should be an active listener also. This is because without being
an active listener the sender will not be able to formulate the message effectively that satisfies
the recipient. It is essential to acknowledge the ideas and thoughts of the recipient and then
develop the message accordingly that remains sensitive to the recipient and addresses the
concerns.

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 John B. Lacson Foundation Maritime University Arevalo), Inc.
GRADUATE SCHOOL
Iloilo City

Any barrier to communication should be effectively overcome in order to ensure that the
communication process has been able to achieve the desired objectives effectively. There needs
to be a cooperative tone in the message and the sender should empathize with the recipient of the
message.

communication procedures with various stakeholders. So, it is extremely important to learn from
the previous mistakes and ensure that those will not be repeated in the future such that the future
communication processes are even more effective.

Summary

Strategic Information System are information system that are developed in response in
response to corporate initiative. 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 flow of strategic information improves the efficiency of the organization and
increases the capability to respond faster to environment changes and correct business decisions.

Information or communication flow within an organization refers to the movement of

instructions and communications within an organization.

The communication flow contains horizontal movement information flow, inward,

outward flow, vertical information flow and downward information flow.

Self-assessment Questions (SAQ)

Answer briefly the following questions.

1. Discuss the meaning of strategies Information System.

2. Enumerate the functions of strategic information system.
3. Draw and discuss the flow of strategic information system.
4. Discuss the concept of the organizational information flow.
5. Describe the types of information flow.

Suggested Enrichment Activity

Discuss the strategic Information System Planning.

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 John B. Lacson Foundation Maritime University Arevalo), Inc.
GRADUATE SCHOOL
Iloilo City

References

https://iwenchangchien.blogspot.com/

https://flowofinfo.blogspot.com/

https://www.allassignmenthelp.co.uk/blog/information-flow-analysis-and-types-of-
information- flow/

https://doi.org/10.1016/j.ijinfomgt.2011.02.005Get rights and content

https://www.sciencedirect.com/science/article/abs/pii/S0268401211000235

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