The importance of strategic information

Table of Content


In a planetary market place, information has emerged as an agent and enabler of new fight for today ‘s endeavor. However the paradigm of strategic planning alterations sufficiently to back up the new function of information and engineering. The inquiry is, are alterations can back up the new function of information and engineering and what is the relationship between strategic information system planning with the development database in an organisation. Therefore, the development of strategic information system planning is importance in an organisation. Strategic information system planning ( SISP ) is the procedure of making a portfolio based on the usage of information system in order to accomplish organisational ends and aims. Within SISP, organisational can clearly specify their organisational ends, the critical success factor ( CSF ) and the job countries within the organisation activity. This article is to discourse the importance of SISP and its relationship with organisational database development and execution.


Strategic Information System Planning, SISP, DBMS, CSF, EI

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A win organisation will hold proper SISP to drive the organisation to accomplish their concern demands and concern ends. For that, SISP is developing to do certain that all activities support organisation ‘s concern program and at the same clip align with its concern demands and concern ends. SISP is besides usage to foretell the organisation hereafter. Within SISP, organisation can avoid from barrier that they predict in a long term planning. Rockart ( 1979 ) stated that top direction house does n’t non much involvement to the relationship between information system map and corporate scheme. He besides said information system is treated as some back-room operation in support of daily operation in an organisation.

As referred to Lederer A. L ( 1996 ) , strategic information system planning is one of the major issues because of it is frequently face the failure while implement it. Many applications recommended by strategic information system planning surveies are frequently disregarded while many other applications are implemented. Strategic information system planning is of import to an organisation because it can act upon an organisation favourably, and is hard to carry through, it is a legitimate mark for research.

Factor impacting strategic information system be aftering include top direction of IS that are IS directors and main information officer ( CIO ) emphasize the importance of their relationship with the Chief Executive Officer ( CEO ) . Those closer to the CEO have a better apprehension of the CEO ‘s outlooks. It is good to hold a good relationship between CIO and other concern unit for obtaining apprehension and support of current and possible clients. Lack of direction committedness and the absence of the control mechanism necessary to guarantee the success of the programs can hinder its execution.

Strategic Information System Planning

Harmonizing to Lederer and Sethi ( 1988 ) in 1980s, the construct of strategic information system planning ( SISP ) evolved. They come with the two construct of SISP. The first 1 is SISP viewed as the procedure of placing a portfolio of computing machine based applications that will help an organisation in accomplishing the concern program and at the same clip accomplish the concern organisation ends. Meanwhile the 2nd 1 is SISP involved seeking for application with a high impact and with the ability to make an advantage over rivals to derive competitory advantage. Based on the theory of SISP, it can be specify that the procedure of placing a portfolio of computer-based applications to be implemented aligned with the corporate scheme and has the ability to make an advantage over rivals.

Organization ends is analyze by specifying what precisely organisation hope in order to carry through the ends. After organisation ends have been analyzed, so critical success factor will evaluated so that it will impact the organisation ends and nonsubjective in long term. Critical success factor is the component that organisation should cognize and must work in order to last in the concern environmental. And in conclusion, place the job countries which are the failings that organisation already have.

SISP aid organisation in overall strategic planning procedure in efficaciously and expeditiously. Rogerson and Fidler ( 1994 ) , a survey on satisfaction utilizing SISP showed that most organisation that used SISP in running their operation more satisfied with the planning procedure and result than those who did non implement specific SISP method.

SISP participants include top concern, functional country, and information system direction. In an organisation, the success of IS program can be determined with the engagement and committedness of senior direction. Engagement of senior direction is really of import to find whether the success or failure of the undertaking. Senior direction was the backlog behind the success of the undertaking. Within SISP besides can be used to better the communicating between top direction and users sing IT. This really derive top direction committedness. Communication and committedness will besides assist in progressively the visibleness of IT in organisation.

The intent of SISP is to guarantee that the IT organisation align with the strategic ends of organisation. Alliance of IT organisation and concern ends has been used to command and guarantee that concern ends will accomplish and all the operation included the IT and IS that used in running the organisation will maintain in path. As referred to Earl ( 1993 ) , SISP alliance will besides assist in placing strategic applications, placing new and higher payback applications, and developing an information architecture. Organizations besides use the SISP to assist in prediction and apportioning IT resources. With SISP, besides can avoid loss of control of IS/IT in an organisation. SISP is needed for the system to guarantee the system that used in the organisation integrated with other system or non.

Without SISP in an organisation, may take to lost chance, extra system, incompatible system and otiose resources.

Importance of Strategic Information System Planning

The importance of SISP in an organisation has been good documented within the IS literature. Within SISP, the integrating of IS map within organisation can be facilitate. Besides, SISP supports the designation of chances to utilize information systems for strategic intent. SISP besides ensures that equal resources or the usage of scarce resources are allocated to critical application and the usage of resources in properly mode. With SISP, can guarantee that the IS map support the organisational ends and aims and besides the activities at every degree.

Having a good strategic information system planning in organisation, will find whether the organisation will success or failure. The ground why organisation needs good strategic information system planning is that it can assist organisation to avoid misused of scarce resources. By be aftering, merely undertakings that can bring forth good returns will acquire investors from the house. A good planning is really of import to avoid job such as the abuse and otiose resources in signifier of system that cipher likes and used the system efficaciously. When a new system developed, preexistent system can be used to pass on or interface decently and at the same clip avoid the job of “ Islands of mechanization ” . This can be go on if the organisation has proper be aftering for their organisation.

Before develop a new system, planning is really of import to do certain the smooth of concern operation. First of wholly, the organisation should place their demands. Development of system should be a response to necessitate whether at the dealing treating degree or at the more complex information and support system degrees. Precedences, aims and mandate for information system undertakings need to be formalized foremost. The system development program should place the undertaking resources that needed the processs, and restraints for each application country. Planning should be flexible to set the precedences if necessary. Furthermore, to ease apprehension of each application the program must be specific plenty. Harmonizing to King, ( King, 1995 ) in his article has argued that a strategic capableness architecture mu st flexible and continuously bettering substructure of organisational capablenesss and at the same clip addition company ‘s sustainable competitory advantage.

It is of import to hold SISP to maximise the benefits of altering engineering and to take history of the different point of views of concern professionals and IT professionals. System investings are made to back up concern aims and besides to derive unequal substructure. SISP is of import because it emphasizes the demand to convey IT to bear on and sometimes act upon strategic way of the corporation is widely accepted by research workers. This is peculiarly true in modern-day environments where tackling the power of engineering resources could be critical for fight.

Relationship with Organizational Database Development

Datas are the natural stuff from which information is produced. Therefore, it is non surprising that in today ‘s information-driven environment, informations are a valuable plus that requires careful direction. To entree informations ‘s pecuniary value, informations that stored in company database are informations about clients, providers, stock list, and operations and so on. Imagine that all the informations in the database loss. What will go on if the state of affairs like that go on? Data loss puts any company in a hard place. The company might be unable to manage day-to-day operation efficaciously ; it might be faced with the loss of clients who require speedy and efficient service, and it might lose the chance to derive new clients.

Datas are a valuable resource that can interpret into information. If the information is accurate and seasonably, it is likely to trip action that enhance the company ‘s competitory place and generate wealth. In consequence, an organisation is capable to a information information determination rhythm ; that is the informations user applies intelligence to informations to bring forth information that is the footing of cognition used in determination devising by the user.

A critical success factor of an organisation is efficient plus direction. Critical success factor involve the direction in an organisation to cognize the current position of the organisation in ICT. Based on the analysis of the concern environment of the corporation, the critical success factors refering the house are identified. Critical success factor is refer to the limited figure of country in which consequence, if satisfactory will guarantee successful competitory public presentation for the organisation. There are such country where thing ‘s must travel right for the concern to boom. Therefore, the factor that are critical for carry throughing the aims are identified at this phase.

To pull off informations as a corporate plus, directors must understand the value of information that is processed informations. Datas are used by different people in different sections for different grounds. Therefore, informations direction must turn to the construct of shared informations. Whatever the type of organisation, the database prevailing function is to back up managerial determination devising at all degree in the organisation. That ‘s why, SISP play a large function in organisation. SISP is an of import direction map. It can assist an organisation usage information engineering ( IT ) more competitively, place new, higher payback IT applications, and better prognosis IT resources demands.

An organisation ‘s managerial construction might be divided into three degrees which are top, in-between and operational. Top degree direction makes strategic determinations ; in-between direction makes tactical determinations and operational direction make day-to-day operational determinations. Operational determinations are short footings and affect merely day-to-day operations for illustration make up one’s minding to alter the monetary value of a merchandise to unclutter it from stock list. Tactical determination affect a longer clip frame and after larger graduated table operation ; for illustration altering the monetary value of a merchandise in response to competitory force per unit areas. Strategic determinations are those that affect the long term wellbeing of the company or even its endurance ; for illustration altering pricing scheme across merchandise lines to capture market portion. This shows that holding a good SISP will take the organisation to accomplish the end and aim in short or long term in an organisation.

Database: Particular Consideration

The company ‘s database is besides known as the corporate or enterprise database. The endeavor database might be defined as “ the company ‘s informations representation that provides support for all present and expected hereafter operations. ” Most of today ‘s successful organisation depends on the endeavor database to supply support for all of their operations from design to execution to gross revenues and services and from strategic be aftering to day-to-day determination devising. Having a computerized database direction system does non vouch that the informations will be decently used to supply the best solution required by directors. A DBMS is merely a tool for pull offing informations and must be used efficaciously to bring forth the coveted consequence.

The debut of a DBMS represents a large alteration and challenge. Throughout the organisation, the DBMS is likely to hold a profound impact, which might be positive or negative depending on how it administered. For illustration, one key consideration is accommodating the DBMS to the organisation instead than coercing the organisation to accommodate to the DBMS. The chief issues should be the organisation ‘s demands instead than the DBMS ‘s proficient capablenesss. However, the debut of a DBMS can non be accomplished without impacting the organisation. The inundation of new DBMS generated information has a profound consequence on the manner the organisation maps and, hence, on its corporate civilization.

The debut of a DBMS into an organisation requires careful be aftering to make an appropriate organisational construction to suit the individual or people responsible for administrating the DBMS. The organisational construction must besides be capable to good developed monitoring and controlling maps. The disposal forces must hold first-class interpersonal and communicating accomplishment combined with wide organisational and concern apprehension. Top direction must be committed to the new system and must specify and back up the informations disposal maps, ends, and functions within the organisation and that besides the demand of SISP in an organisation.

In the database development procedure, there have importance elements in order to develop the database. First, we need to place the strategic planning factors. The strategic planning factors are in term of the ends of organisation that want to accomplish, the critical success factor and the job countries in accomplishing the ends.

In 80 ‘s and 90 ‘s, there has been a turning realisation of the demand to do information system of strategic information to an organisation. In order to set the planning for strategic information system in position the development of information systems harmonizing to the three epoch theoretical account of John Ward, et Al. ( 1990 ) is pertinent. Harmonizing to this theoretical account, there are three distinguishable, albeit overlapping, epochs of information system, dating back to the 60 ‘s. The relationship over clip of the three epochs of information system is shown in table 1:

Data processing, direction information system and strategic information system demand to be planned and pull off efficaciously and expeditiously. Strategic information system needs to provide to the strategic demand of organisation. For illustration, functioning the concern ends and making competitory advantage every bit good as run intoing their informations processing and MIS demands. The cardinal point is, as I merely said before, organisation demand to hold proper be aftering non merely as tools for cutting cost but every bit agencies to adding value.

Database Development and Implementation.

For a company to win, its activities must be committed to its chief aims or mission. Therefore, irrespective of a company ‘s size, a critical measure for any organisation is to guarantee that its information system supports is strategic program for each of its concern countries.

The database disposal scheme must non conflict with the information systems programs. After all, the information system programs are derived from a elaborate analysis of the company ‘s end, its status or state of affairs and its concern demands. Several methodological analysiss are available to guarantee the compatibility of informations disposal and information systems programs and to steer the strategic program development. The most normally used methodological analysis is known as information technology.

Information technology ( IE ) allows for the interlingual rendition of the company ‘s strategic ends into the informations and application that will assist the company achieve those ends. IE focuses on the description of the corporate informations alternatively of the procedure. The IE rational is simple ; concern informations type tends to stay reasonably stable and do non alter much during their being. In contrast, processes alteration is frequently and therefore necessitate the frequent alteration of bing system. By puting the emphasize on informations, IE helps diminish the impact on systems when procedure alteration. The end product of IE procedure is an Information system architecture ( ISA ) that serves as the footing for planning, development, and control of the hereafter information system.


Associating IS to concern ends is the bosom of IS be aftering and without this nexus, the IS map will non hold major relevancy for the organisation. Choosing the right planning methodological analysis depends on the current usage and spread of engineering within the organisation and the importance of the current systems. Resources available such as staff, accomplishment, CASE tools, etc. will besides impact this procedure. It appears that the usage of more than one methodological analysis should be recommended. While new engineering can be advantageous, it can besides present terrible jobs if the right accomplishments and expertness are non available to utilize it decently.

The success of the overall information system scheme and therefore of the informations disposal scheme depends on the several critical success factors. Understanding the critical success factor help the database disposal ( DBA ) develops a successful corporate informations disposal scheme. However, no affair how comprehensive the list of success factor is, it must be based on the impression that development and execution of a successful information disposal scheme are tightly integrated with the overall information system planning activity of the organisation.


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