Discussing the information strategies J.I.Cash and others (1988, s. 630) distinguish two basic approaches to information technology in the company. In most cases, information technology has a role in helping the daily operative business, some companies, however, see it as a key factor of success and one of the basic elements of the strategy. This strategy is one of many functional strategies used by management to help develop and implement overall strategy of the corporation.
These two basic approaches to communication strategy are presented in the following table. Present role of information systems in enterprises, makes it difficult to imagine a successful company without functioning IT system, and in particular without managerial information system (MIS).
Determinants of IT strategy in companies
|Determinant||Technology as part of operating activities||Information technology as an element of the strategy|
|IT Project steering committee||Medium-level management. Its existence is not always necessary.||The active participation of executive management. It is a key success factor.|
|Planning||Errors in the allocation of resources does not cause big losses.||It is necessary to link with the strategy of the Corporation. Much attention should be paid to the appropriate allocation of resources.|
|Risk profile of implementation projects||Avoiding projects with a high level of risk.||Some projects with high risk and high potential effects, in order to obtain a competitive advantage.|
|The management level responsible for information technology||May be low||Should be very high|
|Technological innovation||Conservatism. Keeping 2–3 years behind technological innovations is justified.||A critical element is the continuous improvement and financing of research and development, because competition can get an advantage.|
|User participation in the implementation of the system||Small.||High priority to the active participation of users in the implementation of the system.|
|Budgeting||The information System seen as a cost center. The development of the budget does not cause problems and emotions.||It is necessary to link planned spending with the strategic objectives of the company. Often, discussions on the budget can be
|Expenditure control||Expenditure on modernization and development of the system can be set aside in case of difficulty.||Efficiency is most important Managers must keep applications modernized, and look for savings elsewhere.|
Source: own elaboration.
- Lederer, A. L., Mirchandani, D. A., & Sims, K. (1997). The link between information strategy and electronic commerce. Journal of Organizational Computing and Electronic Commerce, 7(1), 17-34.
Author: Krzysztof Wozniak