Strategic Information System | Competitive Advantage

Why do businesses focus on information systems?

Businesses are becoming increasingly reliant on Information Systems, but what is the big picture? What aspects of an organization are most important to measure? When we think of IT best practices, we tend to think of software development; the processes behind creating, testing, and implementing an app or system, business intelligence etc. But that’s only part of the picture. There’s a lot more to business analysis and project management than just siloed information systems. Workflow – this refers to the process of how a business moves from A to B, such as handling customer service requests, or the process of how a product moves from design to market and eventually to support. Planning – a business needs to make sure they have all the necessary resources, such as workforce.

Strategic Information System involves having a long-term vision, define business objectives, setting goals, and taking steps to reach those goals and address organizational issues. Strategic Information System keeps the organization focused on its vision and organizational transformation. It is used to provide information about the current situation of an individual, group or organization. It is a conceptual system that helps in understanding the present and the future environment in which an individual or organization operates. A strategic information system (SIS) is a business information system (BIS) with the features Systematic approach to collecting, storing, and retrieving data; Integration with other systems. It is essential for your company to have a clear vision, business plan, strategy and organisation structure. It’s important that your employees are aligned with these strategies, so that everyone has the same goals in mind.

Systems management is the process of planning, implementing, and monitoring of information systems that support the mission, goals, and objectives of an organization. They offer competitive information, help you improve organisational structure, allows you to tackle competitive forces and prepare you the environmental changes. The features of a strategic information system are:
  1. Information Security
  2. Data Integrity
  3. Data Security
This is the process of aligning your brand with the different channels you’re using. Each channel has its own audience, and as a brand owner, you need to know who your audience is and what they want. New markets keep on emerging which give rise to new products, thus requiring a new and better competitive strategy to success.

Understanding Strategic Information System

A strategic information system is mainly developed to respond to the corporate world and many business initiatives. Strategic information is used for gaining competitive advantage and formulating business strategies by organizations. It may deliver a service or product that is at a lower price, differentiated and mainly concentrates on a demanding market section, or which is innovative. It help companies frame business strategy, competitive strategy, take management decisions and thus gain competitive advantage and achieve cost reduction.

Strategic Information System is a management system that helps to set goals and organize activities for an organization. It allows you to to organize the information and ideas about the way your company works. In the 1990s, several companies were founded on the idea of “strategic information systems,” which is a fancy way of saying they use computers to gather data that helps them make better decisions. Strategic Information System (SIS) is a database of information collected by the government for the purposes of national defence and security.

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Strategic Information System is a system that provides the right information to the right people at the right time. Strategic Information Systems can be used by companies, governments, and individuals to make better decisions in an increasingly fast-paced world. Today, the strategic information system are widely used in business. For example, the online application of this system is the ERP (Enterprise Resource Planning). It’s important to have a Strategic Information System (SIS) for your company. SIS is a system that allows you to track and store information about the performance of your company, as well as the performance of individual employees.

A Strategic Information System (SIS) is a system that assists an organization in the identification, acquisition, maintenance, use and disposition of its data resources. SIS helps organizations to evaluate their data requirements and maintain records with minimum cost and maximum effectiveness. Strategic Information System (SIS) is a type of information system that is designed to meet the specific needs of an organization. A Strategic Information System (SIS) is a tool used by law enforcement to collect, analyze, and share information across jurisdictions. The SIS can be a database for crime reports, arrest records, warrants, and more.

Strategic Information System is a way to measure the value of information. A Strategic Information System can be used to make strategic decisions by measuring the value of information. The processes that capture data, Strategic information systems are often used by governments to facilitate decision-making and execution. In the same way that businesses use strategic information systems, governments use systems like these to make important decisions and act on them effectively. The importance of Strategic Information System (SIS) cannot be emphasized enough.

Information System Strategy is an essential feature in Corporate and Information Technology (IT) world and provide them with better bargaining power. In a nutshell, it helps firms and companies to allocate, store, process data, move the data and information they develop and receive. It also enables and provides various tools and services for aiding the firms to apply metrics and analytical tools in their information repositories. Information systems allow them to recognize the resourceful opportunities for expansion and simple ways to enhance operations and supply efficiency. Thus, firms with a better chain management, knowledge management, data management practices along with more effective data presentation and analysis can provide better customer service at reduced or less cost.

Strategic information system

You might also like to view a detailed video on the Strategic Information System which we found useful:

Importance and advantages of Strategic information system

Strategic information system provides a connection between demands of organization and latest information technology. This tactic helps an organization to get hold of the market by utilizing Information tech to meet its challenging requirements to the continuous variation in the corporate environment. Helps them evolve their business strategy, helps with knowledge management and operations management.

Information system strategy is a critical aspect of an organization’s management decision for its growth, expansion and supply chain management. Information technology and competitive intelligence can work wonders for a business. The integration of the data system and its function within the organization can be handled easily by enabling open access and use of management systems. Besides that, it also enables the classification of different opportunities for the use of information systems for different strategies. It gives the surety that only useful resources or the use of resources which are less are allocated to the applications and to use the scarce resources in a sustainable way and have a better impact factor. With the System Information Strategy, it ensures that the Information system functions accordingly and supports the business goals and objectives of the organization at the different levels.

There are several instances of strategic planning which have helped the organizations to help create and sustain the resources in this competitive market over the past years and has allocated several effective benefits and simply continued to provide for the survival of these organizations which have used these systems. These systems are often termed as ‘strategic concepts of the organization.’ To give the maximum performance of the firms financially in a fluctuating market, the correlation between Strategic Management and Information System is significant fundamentally. Understanding of management information system is equally helpful & an asset to the organisation.

In additional to the reduction in product related cost, it also helps in increasing market share, streamline business process, provide a better business environment, diversify functional areas, and deliver high quality product and services.

Related: Data MiningData MappingInformation Processing Cycle

Types of Information System Strategies

1. Operations support system: In a firm, data execution is performed by the user end, which is later processed to generate useful data products and services like reports, which are utilized by different users. Such a strategy is called Operation Support. The primary purpose of this system is to keep a check on transactions, operations, control, supply chain, and supply management. It also helps to facilitate internal and external talks, product differentiation and it updates the central main database of the organization. The operation support system is further divided into three systems which are:

  1. Transaction Processing System (TPS)
  2. Process Control System
  3. Enterprise Collaboration System

2. Management Support System
Firms require accurate data in a specific format to understand the decisions of the organizations. Management support system strategy enables the effective decision and task operation process more manageable for the managers. They are essentially divided into a different strategy like management, decision, accounting and expert information system.
These systems facilitate and provide precise information and data to the manager for easy routines, decision-making processes. Decision support system which helps to solve particular issues related problems. Strategic planning, information technology, information management and data collection can aid the process of data analysis.

Strategic information system - better management

Uses of Strategic Information System

  • Creating Hurdles for the Entry of a Competitor: In this, a firm uses information systems to supply products and services that are hard to duplicate or that are used primarily to aid highly specialized networks of business. This strategy stops the entry of competitors in the market as they find the cost of giving such services at a very high price.
  • Improving Marketing by Generating Database: Information system also gives the firms and organization an edge over their competition by generating stronger databases, utilising big data and product differentiation to enhance their sales and marketing tactics. It treats existing information as a useful resource. For instance, a business firm may use its updated databases to monitor the purchase of the customers and to locate many segments of the market.
  • Locking customers and suppliers.: It is an essential way of getting the advantage of competition by making the customers and suppliers permanent. In this information systems strategy are implemented to provide benefits to the customer and the suppliers so that it may change their mind and it becomes hard for them to switch over to the other competitor so that they continue to provide the services.
  • Lowering the costs of the products: It may help the firms lower their costs and allowing them to give products and services at a much smaller cost than their competitors. Thus such a strategy can provide the expansion and growth of the firm.
  • Leveraging technology in the value chain: In this way, the organizations pinpoint the particular activities in the business, where competitive market strategies can be applied and where the strategical information systems can be more effective.

Related: Data Processing CycleImportance of Data ProcessingData Visualization

Strategic alignment

A strategic alignment with strategic information system is a critical part of any company. Information systems are a critical part of any large company or organization. For any large company to succeed, it is essential for the information system to be aligned with the company’s goal. SISP success also depends on how well a company responds to changes. Adapting to changing business scenarios is a critical success factor.

Strategic alignment is the degree to which an organization’s business strategy is realized in its information system. It can be achieved by ensuring that business strategy is aligned to the objectives, goals, and themes that are represented in the information system. It can be accomplished by evaluating how the information system contributes to the organization’s strategic goals, resources, capabilities, and the environment.

Read More on: Strategic Information Systems Planning (SISP) – An IS Strategy for ERP Implementation


Before making a new system, the strategy is very essential for smooth business operations and services. First of all, the firm should identify their requirements and then work on strategic analysis and SWOT analysis. Development of new information system should be in response to the needs and requirements; whether at the level of executing transactions or at some complex data and support information system levels. The normalization of requirements, information management, goals, and authorization of the information system should be done first. These systems include financial measures that focus mainly on the short period consequences of manager’s decisions regarding queries such as revenue expansion, market inflation, asset utilization, resource management and cash flow in the fluctuating market. They boost up the objectives of the firm with nonfinancial measures that helps with operational achievements to raise the future financial growth of the organization. The system strategy development should mainly identify the project resources and constraints for every area of application. Necessary planning should be flexible to adjust the priorities of the organization.

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