Technopreneurship

Strategic Information System

A strategic information system is primarily designed, to adopt
organization environment and a variety of business incentives, they are
used to improve the competitive advantage of organizations they deliver
a service or a product that is at a reduced price differentiated and
focused mainly on a specific market segment or that is innvative
There are programs that help or form the strategic of the business or
the organization it is distinguished by its willingness to dramatically alter
the way in which it works. It can also adjust the strategies, the
procedures, the goods or environmental relationships to help the
company achieve the competitive advantage.
So, the strategic information system also enables and offers the different
resources and services to help businesses apply metrics and analytical
methods to their knowledge, database, and enable them to identify
resourceful opportunities for growth and easy ways to optimize
operations and supply performance it also improves the data processing
along with the more efficient presentations and the review of result.
So, what is are the importance of these strategic information system.
The strategic information system provides the links between
organization’s demand on the latest information technology so this
techniques allow the integration of the data system. So it allows the
company to get hold the competition
By using the information technology to fulfil the demand criteria for
continuous improvement in the business world the information
management strategy is crucial component of the organization’s
development and expansion. So the integration of the data system and
its role with in the company can be done easily within it.
So in addition it also allows the recognitions of the various incentives for
the use of the information system with specific strategies this
guarantees that the only available resources or the usage of resources
that are less committed to project and that’s resources are used in a
sustainable manner.
The system management strategy ensures that the management system
work correctly and meet the business goals and priorities of the
company at a various level. There are numerous example of strategic
information system that have allowed the companies to build and retain
the leverage in the dynamic environment in the past several years
That had been given some valuable benefits and have actually
continued to ensure the longevity of those entities that have used this
system. Such structure are also referred to as the strategic principles of
the organizations the connections between the strategic management
and the information system is crucial in order to give the companies the
best financial outputs in a placating environment
So, that’s the importance of the strategic information system. What are
the levels of the strategic information system. We have the operational
management level, we also have the tactical management level, and the
strategic management level.
The operational level is concerned in organization’s day-to-day business
transactions. Definition of users at this time, the level of management
include the cashiers at the point of sales, the bank tellers the hospital
nurses, the customer service workers, and others. The structured
decisions are made by the users at this stage, this means that they have
established rules that are govern with the making decision
So for example if a store sell good on a credit and has a credit policy. So
everything sales people need to determine whether or not to give the
credit to the customer which is based on the current credit of the
customers. Or the current credit details given by the program.
If we say tactical management level this is govern by the middle level
managers
Which are the department heads, and the supervisors. So the user at
these times usually oversee the activities of the users at the level of
operational management there is a semi-structured decisions that are
taken by situational consumers. Decisions are based in part on defined
criteria and judgmental calls as an example of a tactical manager that
can check the credit limit and the payment history of the customer
And decide to make an exemption to the raise of the credit limit for a
particular customer. So the decision is partly structured in the sense that
the tactical manager has the use of existing information to identify the
payments history that benefits the organization and un allowed
increased percentage.
If we say strategic management level, this is most on the levels of the
senior in an organization wherein the user at this level make the
unstructured decisions. The users or the senior level managers are
concerned with the long-term planning of the organization. They use
the information from the tactical managers and external data to guide
them when making the unstructured decision.
These are the types of strategic information system we have the
transaction processing system, decision support system (DSS), and
artificial intelligence, online analytical processing (OLAP)
The transaction processing system is a system that record the day-to-day
business transactions of the organizations. They are used by the users at
the operational management level and the main objective of the
transaction processing system is to answer the routine question such as
the how the printers were sold today, how much inventory do we have
at hand, and what is the outstanding balance.
By recording the day-to-day transaction, the transaction processing
provides answers to the question that are or should be in a timely
manner. the decision made by the operational managers are routine and
highly structured.
Example of the transaction processing system include that point of sale
system which records daily sales the payroll system, processing of
Employee salary or loan management. We have the stack control system
which is keeping track of the inventory levels we have the airline
booking system of the flight booking management and the management
information system.
If we say management information system these are used by the tactical
managers to monitor the organizational current performance status. So
the output from the transaction processing system is used on an input
to a management information system. This system analyses the input
with the routine algorithm.
And then we have the example such as the aggregate to compare and
summarizes the result to produce the reports that the tactical managers
users use to monitor control and predict the future performance.
The tactical managers are responsible for the semi-structured decision.
In MIS it provides the information needed to make the structured
decision.
And based on the experience of the tactical managers they make
judgment calls, they lean to predict how much the goods or inventory
should be ordered for the second quarter or the third quarter based on
the sale of the previous quarter. So examples of the management
information system includes the sales management system wherein we
have to get the input from the point of sale system.
We have the budgeting system that gives an overview of how much
money is spent with the organizations for the short or long period of
time and then finally we have the human resource management which
includes the overall welfare of the company or the third the start or the
beginning of the employee and the turn over of staff
And then we have the decision support system, the decision support
system are used by the senior management to make a non-routine.
decisions the decision support system used the input from the internal
system which are the transaction processing systems and management
information system and the external systems.
The main objective of this includes that the decision support system use
sophisticated mathematical models and statistical technique which is
includes the probability or predictive modelling to provide solutions
where they are interacting.
Artificial intelligence systems mimic the human expertise to identify the
patterns in the large data sets. The companies such as Facebook the
Google or the Amazon use the artificial intelligence technique to identify
the data that is most relevant to the users. So let’s say for example the
Facebook usually makes very accurate predictions of the people that
you might know or went with you to work or to the school.
They use the data that you provide to them and then the data that your
friends provide and based on this information make the prediction of
the people that you might know.
And for Amazon users the artificial intelligence techniques is to suggest
the products that you should buy also based on what you are currently
getting.
Also the Google give you the most relevant search results based on the
interaction with the Google and your locations.
So these techniques have greatly contributed in making these
companies very successful because they are able to provide the value of
their customers
And then we have the online analytical processing or the OLAP
This is used to query the and analyse the multi-dimensional data and to
produce the information that can be viewed in a different ways using
the multiple dimensions so let’s say for example there are company cells
such as the laptop, the desktop or the mobile devices
They many branches for example the xyz the OLAP can use to view the
total sales of each product in all the regions or sales locations and
compare the actual sales with the project paid sales so each piece of
the information such as the product and the number of sales values,
value represent the different dimensions.
The main objective of this OLAP is to provide the answers to ad hoc
queries with the short possible period of time regardless of the zone of
the data sets being used
The role of information and competitive forces.
Business and the competitive force business are said to be competitive
over the rivals when they are capable of reducing the revenues that
meet with the industry average. According to Michael Porter there are
two main ways gain the competitive advantage. We have the cost
advantage and then we have also the gap advantage.
So the question is how can information technology be a partner of these
approaches or both.
The value Chain and the Value Chain Analysis.
The value chain is a business model that defines the full range of the
activities required to produce a product or a service. So in the case of
the company selling products the supply chain consists of paces that
include taking the product from the creation to delivery and everything
else.
So for example the sourcing of the raw materials, the production
functions and the marketing activities it also represents the internal
activities a firm engages in when transforming inputs into an output.
An organization performs a value chain analysis by analyzing the
comprehensive process involved in such or each phase of its operation.
The goal of the value chain analysis is to maximize the production
efficiency so that the business can achieve the maximum level of the
lowest cost possible. So the value chain analysis helps a company
understand how it adds value to something and subsequently how it can
sell its product or service for more than the cost of adding the value.
Thereby generating the profit margin.
So originated in 1980s by Michael Porter. The value chain analysis is the
conceptual motion of the value added in the form of a value chain. He
suggested that the organization split into the primary activities and
support activities.
The value chain analysis model primary activities primary activities
consist of five components and all are essential for adding the value and
creating the competitive advantage.
The inbound logistics includes the functions like receiving warehousing
and managing inventory. Those are the functions performed to provide
the raw materials and other inputs required. The information
technology can be used to make these processes more effective such as
the supply chain management system which enable the manufacturers
to control their own inventories.
And then we have the operations.
Operations include the procedures for converting the raw materials into
the finished products. so any of the company that is involved in
transforming the raw materials to finish goods or services is part of the
project from manufacturing to business process management the IT can
be used to produce more productive process
And increase productivity through a knowledge.
How about the outbound logistics. Outbound logistics includes the activities to
distribute the final product to consumers they are functions that are required
to get the product out to the consumers as with the inbound logistics the IT
can be used to enhance the processes such as allowing the real-time inventory
checks, the IT may also be the distribution process itself.
Also be the distribution process itself. How about the marketing and
sales, it include the strategies to enhance the visibilities and the target
appropriate customers such as the advertising, the promotion and the
pricing. The roles that will inspire the consumers to purchase the goods
are part of the sales and marketing. Son the information technology is
used in almost every aspect of the operation.
From the online ads to the online surveys, the IT can be used to
innovate the products design and touch the consumer as never before.
The company’s website may be a distribution platform itself.
Service incudes the programs to maintain the products and enhance the
consumers experience.
The customer service, the maintenance, the repair the funds and
exchange.
The task that the company conducts after the product has been
purchased to sustain and increase the value of the product.
These are part of the service process. The service can also improve by
technology including the support services, by website, and information
bases.
Value chain analysis support activities.
The support activities are the functions in the organizations that support
and cut across all the primary activities. The support activities are the
firm infrastructure that includes the organization passions such as the
finance the accounting and the quality control.
All of which depend on the information technology. So the use of the
ERP system is the good example of the impact of the IT that can have on
these functions.
The we also have human resource management. This activity consists of
the recruiting, hiring, and other services needed to attract and retain
the employees. Using the internet the HR departments can increase
their reach while looking for a candidate. There is also possibility of
allowing the employees to use the information technology for more
flexible work environment.
How about the technology development here we have technological
advances and innovations that support the primary activities these
advances are then integrated across whit the firm and within one of the
primary activities to add the value. The information technology would
fall specifically under this activity.
And then we have the procurement. The activities involved acquiring
the raw materials used in the creation of the products and services are
called procurement. The business to business, e-commerce can be used
to improve the acquisitions of the materials.
Competition in the industry, the first of the five powers relate to the
number of rivals on their ability to undercut a company. The greater
number of rivals and the lower power of company along with the
number of comparable goods and services they sell.
And then we have the potential of the new entrants in the industry. The
dominance of the corporation is also influenced by the power of the
fresh entrance on its market. The less time and resources it may takes a
competitor to reach the market of a business and efficient competitor
and the more the role of the existing company will be sustainable or
substantially we can
The power of suppliers the next element of the five powers discusses
how quickly suppliers can push up into cost. So it is influenced by the
number of product or services. Maintaining input of suppliers.
How special these inputs are and how much it could cost a business to
turn to another supplier. The less suppliers to one industry the greater
the reliance of a market on a supplier.
So that is the power of supplier, again the less suppliers to the industry
the greater the reliance of the market on a supplier. As the result the
producers have more leverage and can drive up the cost of input and
press for the other trade benefits.
How about the power of customer.
One of the five powers is the capacity of the client to push rates lower
or their level of controls. It is influenced by how many customers or
consumers or clients a business has and how important their clients is.
And how much it will cost a business to find the new clients or markets
for its production.
And then we have the threat of the substitute products.
The substitute of goods or services can be used instead of the products
or services of the business post a hazard. The company’s manufacturing
good or services but do not have the similar alternatives would also
have leverages to lift rate and lock on the advantages trends
The customer would have the option to forgo the purchasing of a
company product. So those alternatives are available and then the
control of the company maybe we can. So those are the Michael
Porter’s five forces.