Information Systems and Strategic Planning

Learning Objectives 
To 

understand 

what a Management Information System is what role a Management Information System plays within an organisation strategy and strategic planning what Strategic Management is  

information that is accurate. relevant and timely for the support of the process of management.  .The MIS Question ?  Question: What is a Management Information System ? Answer: The basic concept of a management information system is that of a system that provides. to all levels of management.

Budget advice & equipment options for MIS needs. USER Needs. MIS needs and master plans. BOARD Budget policies. choice of design & project control. . New service needs & nomination of project benefits. system problems.The MIS Triangle Policy on priorities. IS Options of project design. objective setting & monitoring. costs & benefits of proposals.

. Business Plan Alignment: IT business plans must be congruent with the organization¶s business plan or the worth of the IT plan will always be suspect. It guides how individuals and groups cooperate to achieve business objectives.Information Management  Information management depends on the following:   Governance: Governance or information politics. is used not only to exercise authority but is an art for achieving corporate consensus.

Management Information Systems  Within organizations today the most valuable commodity they possess is information.   . A management information system should be used by everyone within the organisation if they have the need. A management information system is a valuable resource to the entire organisation.

what its goals should be. and what policies will be needed to carry out those goals. (1980 ) ³ Strategic decisions are concerned with: ‡ The scope of an organization¶s activities ‡ The matching of an organization¶s activities to its environment ‡ The matching of an organization¶s activities to its resource capability ‡ The allocation and reallocation of major resources in an organisation ‡ The values.What is a Strategy ? Question: What is a Strategy? ³Strategy is a broad based formula for how business is going to compete. M. G. Porter. The essence of formulating competitive strategy is relating a company to its environment´. (1989) . E. Johnson & K Scholes. expectations and goals of those influencing strategy ‡ The direction in which the organisation will move in the long term.

Strategy  ³Strategy is the pattern of resource allocation decisions made throughout an organisation. it is always possible to see what an organisation¶s strategy is by inspection of the whole of what is does. . most critically. These encapsulate both desired goals and beliefs about what are acceptable and. unacceptable means for achieving them.´ (Robson.97)  Therefore.

Types of Strategy Corporate Strategy ‡ ‡ What businesses are we in ? What objectives and performance are we pursuing? ‡ ‡ Information Systems Strategy What systems does the business need ? What systems can provide competitive advantages ? Business Strategy ‡ ‡ What product-market position are we pursuing ? What goals must we meet ? Information Technology Strategy ‡ ‡ What technology policies do we need ? How should we manage the technology ? .

97) . (Robson.Corporate Strategy       Provides the framework for the business style that reflects the business strategy and influences the business strategy in terms of: Outsourcing Diversification Scale Scope Deals with the entire organisation.

a unit within the organisation Porter (1985) classified business strategies as either cost leadership or differentiation of products and may encompass an entire market or be focused on a particular part of it.e.Business Strategy    Business strategy is the intent of the business. that is. the way the business wishes to go. . It deals with a single business unit. i.

Ansoff. Addison-Wesley. Implanting Strategic Management.  W F Gleck & L R Jaunch. . Strategic Management.´ ³Strategic management is the decision process that aligns the organization¶s internal capability with the opportunities and threats it faces in its environment. (1984). (1989).´ A J Rowe et al. I.  ³Strategic management is a stream of decisions and actions which leads to the development of an effective strategy or strategies to help achieve corporate objectives.´ H.Strategic Management Question: What is Strategic Management ?  ³Strategic management is a systematic approach to a major and increasingly important responsibility for general management to position and relate the firm to its environment in a way which will assure its continued success and make it secure from surprises. (1984). Prentice-Hall. Prentice-Hall. Business Policy and Strategic Management.

.Strategic Management      Deriving and describing the strategy Applicable to all organisations ± large or small Includes the entire organisation Looks past the day-to-day running of the company Focuses on the long-term prospects and development.

Elements of Strategic Management (Robson.97) Expectations objectives and power The Environment Resources Formulation of strategy itself Strategic analysis Often referred to as tactics Generation of options Strategic choice Strategy implementation Resource planning Organisation Evaluation of options Selection of strategy People and systems structure .

physical. management style.ANALYSIS    What is occurring or will occur in the business environment and what will be its effect on the organisation. Culture or organisation. social. power of individuals and groups. financial skills available in order to determine strengths and weaknesses of organisation. Resources . Changes will be economic. technological and competitive. .

 The strategy must be a product of what the people involved want the organisation to be. to do and to achieve. evaluate and select.STRATEGIC CHOICE Generates number of possible strategies. analysis and implementation of changes needed in organisational structure.  . STRATEGIC IMPLEMENTATION  deployment of resources.

3. while strategic management is focused on producing strategic results: new markets. Strategic management consists of: formulating strategies. managing implementation of strategies and capabilities. Strategic management broadens the focus to include psychological. new products and/or new technologies. while strategic management is management by results. designing the firm's capability. while strategic management is about choosing things to do and also about the people who will do them. Strategic planning is an analytical process. strategic planning is about choosing things to do. 4. To paraphrase Peter Drucker. Thus. sociological and political variables. .What Is the Difference Between Strategic Planning and Strategic Management? 1. Strategic planning is focused on making optimal strategy decisions. Strategic planning is focused on business. while strategic management is an organizational action process. economic and technological variables. 2. strategic planning is management by plans.

 Aims to define and document an approach to doing business that leads to satisfactory profits and growth. (Robson.97) .Strategic Planning Process    This is not a linear activity Definition ³The process of developing and maintaining consistency between the organisation¶s objectives and resources and its changing opportunities´.

Model of Strategic Planning Process Planning element Strategic analysis Goals Strategic choice Strategies Policies Strategic implementation Decisions Actions What choices do we have? Where are we going? Plan component Mission Key question What should we be doing? What routes have we selected? How do we shape our decisions to get there? Shall we do it? .

strategic management and strategic planning have been covered.Summary This lecture has given descriptions of Management Information System and the role a Management Information System plays within an organisation. . Also strategy.

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