Strategic information system

From CEOpedia | Management online

An important role of such systems is to build a lasting bond between employees, by creating of a high level of so-called. organizational culture. Organizational culture includes patterns of conduct, behavior and responses of workers in a variety of situations.

Daily use of standards and values, facilitates the functioning of the productive worker in the enterprise and allows appropriate identification with it, resulting in a growing level of employee motivation. Creating and cultivating the right organizational culture requires an efficient information system (for internal communication), enabling the management to put the issues of adequate organizational culture in the area of planning of the development of the company, and adapting its strategies to the changing conditions of the environment.

According with the definition proposed by C.K. Laudona and J.P.Laudon, strategic information system results in a change of objectives, processes, products, services, relationships with the environment in order to obtain a competitive advantage (2000, p. 48). Strategic information system becomes the basis for the operation of the company, often becoming more important than the basic activities such as production, sales, customer service, etc.

This is the most striking example of the integration of information systems and strategic business activities. The company that decides to implement high level of communication strategy, must change organization and processes to a new way of functioning.


The functions of the strategic information system (SIS) are as follows (B. O'Brien 1995, p. 412):

  • the establishment of lasting ties with suppliers and customers,
  • strengthening and integration of internal systems,
  • creating new products or services on the basis of the information gathered,
  • generation of the appropriate management information,


Characteristic features of SSI are as follows:

  • focus on the environment,
  • the benefits of functioning of the system are common to companies, suppliers and customers,
  • a better understanding of customer needs,
  • innovation in the area of business processes,
  • allows to manage organizational knowledge
  • are developed by evolving, adapting to the changing conditions of the environment,
  • quality is more important than price in the process of choosing and implementing this type of systems.

Importance in management of changes

Importance of gathering information is crucial in overcoming resistance to the changes in the organization. Tactics of educating employees and better communication helps to break resistance due to lack of information on the dynamics of transformation or wrong assessment of the situation. Also SIS is important for creating participation, it is necessary to ensure the inclusion of a large proportion of employees in the system of exchange of information about the process of transformations and the progress of the organizational changes.

See also:

Examples of Strategic information system

  1. Enterprise Resource Planning (ERP) - ERP is a software system that integrates multiple business processes and provides a platform for data sharing and analysis. It is used to facilitate the flow of information across departments, allowing for more efficient operations and improved decision-making. ERP systems can support a variety of business operations, including accounting, inventory management, customer relationship management, procurement, and human resources.
  2. Customer Relationship Management (CRM) - CRM systems are used to manage customer information and interactions. The system allows businesses to track customer data, gain insights, and improve customer service. It also helps businesses identify new leads and opportunities.
  3. Supply Chain Management (SCM) - SCM systems are used to track and manage the flow of materials, products, and services from suppliers to customers. It includes processes such as order processing, inventory management, and logistics. SCM systems help businesses optimize their operations and reduce costs.
  4. Business Intelligence (BI) - BI systems are used to analyze and visualize data in order to gain insights into a business. It helps businesses make more informed decisions by analyzing trends and patterns in the data. BI systems can help businesses identify new opportunities and develop strategies.

Limitations of Strategic information system

A Strategic Information System (SIS) can be a powerful asset for any organization. However, it is important to recognize that there are some potential limitations of an SIS. These include:

  • High costs - Implementing an SIS requires a significant financial investment in hardware, software, and personnel training.
  • Lack of flexibility - As an SIS is designed to meet specific strategic goals, there may be limited flexibility to adjust to changing circumstances.
  • Limited scope - An SIS may be built with a narrow focus, making it difficult to be used for other purposes.
  • Data integrity - If the data used to power an SIS is inaccurate or incomplete, the results of the system may be unreliable.
  • Difficulty in changing technology - As technology changes, SIS may need to be updated and replaced, which can be a costly and time-consuming process.

Other approaches related to Strategic information system

One of the most important components of a Strategic Information System is the use of other approaches, such as:

  • Business intelligence which involves the use of data analytics to gain insights into the performance of the organization and make decisions for the future.
  • Customer Relationship Management (CRM) is an approach to managing customer interactions and relationships in order to maximize customer satisfaction and loyalty.
  • Enterprise resource planning (ERP) is a system used to manage the data and processes associated with the organization’s operations.
  • Supply chain management is a process of planning, organizing, and controlling the flow of goods and services from the point of origin to the point of consumption.
  • Document management is the process of organizing and storing electronic documents and files.
  • Process automation is the use of software to automate manual processes, such as accounts payable, accounts receivable, and payroll.

In summary, a Strategic Information System is a system that uses a variety of approaches to help organizations effectively manage their data, processes, and customer relationships.

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Author: Krzysztof Wozniak