Strategic IT System
Obtaining information and their skillful use in the process of decision making, determines rationality and affect the efficiency of the strategic management process.
Because company's strategic decisions is repeated in annual or perennial cycles, proper information is essential. It must be internally consistent, constantly renewed system, created by the company for their own needs.
This system is called a strategic information system - SIS. Its task is the acquisition, processing, storage, protection and transmission of information for repetitive strategic decisions.
Gathering information for SIS
The information on which the decision is based can be collected in an ad hoc manner by the company or purchased from external experts. Over time, some of them feeds the system database enriching its resources.
Range of information differs for small business, medium-sized and large companies. Therefore, in some companies the information system is just a methodical guide dealing with information resources and means of obtaining them, while in others it can be a very extensive, integrated, independent, computerized database system.
Features
Well organized strategic information system allows structuring of repetitive strategic decisions and reduce the risk of their making.
Fluctuations in environment during the strategic decisions, changes the scope of the information contained in the databases of an information system. The need for continuous updating, renewing and adapting it to the needs of strategic decisions is a prerequisite for proper functioning.
Scope of information analysed by strategic IT system
Depending on the financial capabilities and the needs of company, the scope of information included in the system can be more or less extensive.
It seems that the most important information that should be found in every strategic information system, regardless of the size of the company is:
- information about the strategic intentions of institutions impacting directly or indirectly the functioning of industry and sector,
- information about scientific and technical progress in industry and sector,
- information about the development of international economic and trade relations, affecting the sector,
- information about financial and economic considerations of the economy (price levels, tariffs, etc.),
- information about the level of attractiveness and opportunities of the sector (competitors, suppliers and customers, etc.),
- information about the potential new markets, the level of their attractiveness, barriers to entry and exit,
- information about the competitors, their intentions and strategies
- information about company's resources and assets, company's strengths and weaknesses,
- information about the progress of the implementation of the selected strategy, difficulties and critical points.
See also:
| Strategic IT System — recommended articles |
| Strategic risk — SPACE method — Managament of development — Strategy wheel — Global risk — Definition of strategic management — Product development strategy — ASTRA analysis — International corporation |
References
- Ross, J. W. (2003). Creating a strategic IT architecture competency: Learning in stages.
Author: Krzysztof Wozniak
