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Corporate strategy and logistics
Developing strategic information system
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Recommended: Corporate strategy and logistics
Successful logistics
Voortman came up with six objectives logistics should fulfill to be considered successful and named them the six ‘’rights’’ of logistics saying that logistics involves getting the right products or services to the right customer at the right time in the right condition at the right place at the right price.
(Coyle et,al 2012) figured that successful organizations can meet their customers need and build their competitive advantages and profitability through three principle types that can add value to the products or services through logistics which are, Place utility, Time utility and quantity utility.
Place utility means increasing the product availability in the market through transporting the product to a highly demand
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According to (Wiseman,1985) SIS is an information system that supports the organization in achieving its competitive or other strategic objectives.
V.S.Bagad defined SIS as any information system which directly assists an organization in achieving its organization strategy.Bagad mentioned three essential featured for SIS first SIS must be part of strategic plan of the organization, secondly it must be supported by the top management, finally it must not be owned by one department but must belong to all departments.
The need of strategic information system was clarified by (Pearlson and Saunders, 2003), through the information system strategy triangle which emphasize the role of the information strategy in supporting the business strategy and the organizational strategy.
Pearlson and Saunders defined the three element of the triangle as the following:
• Business strategy starts with a mission and is a coordinated set of actions to fulfill objectives, purpose and goals and serves to set limits on what business will seek to
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The role of SIS in achieving competitive advantages was investigated through the 80’s and the 90’s (Rackoff et al, 1985, BROWN,et al 1995, wiseman 1988)
Much attention has been directed toward strategic information system planning Lederer and Sethi,1991 define SISP as ―the process of identifying a portfolio of computer-based applications to assist an organization in executing its business plans and realizing its business goals.
Altameem et al, 2014 Strategic Information Systems Planning (SISP) is an important activity for helping organization to identify strategic applications and to align an organization’s strategy with effective information systems to achieve organization’s objectives. He also added that Effective SISP can help organizations to use information systems to reach their goals and objectives. It can also enable organizations to use information systems to significantly affect their strategies.
Cassidy 2005 mentioned several benefits of planning strategic information systems:
1- Effective management of an expensive and critical asset of the organization
2- Improving communication and the relationship between the business and IS
Asemi observe that Management Information System (MIS) is one of the information systems that is computer based. Besides, Asemi defines MIS as “an organizational method of providing past, present and project information related to internal operations and external intelligences. It supports the planning, control and operation functions of an organization by furnishing uniform information in the proper time frame to assist the decision makers,” (2011). The aim of MIS is to satisfy the general information need of the entire manager in an organization. Before the advent of computers, the process of decision-making was one that was full of built-in advantages and ad hoc methods. Computers technologies have changed the landscape of the decision-making process completely by making the process less demanding and easy to undertake. The reason for this situation is that information technology has made access to information more automated, efficient, effective, timely, and less ambiguous. Consequently, the ordinary t...
Kaufman, Roger. Strategic Planning Plus: An Organizational Guide. Sage Publications, Inc.: Newbury Park, California, 1992.
The data and information collected is used to improve the company’s operations and to serve the staff, managers and customers of the company the best that they can (What is MIS?). Management information
Firstly, there is a need to focus on the company competitive dimensions before embarking on the decisions. In this aspect, the Competitive capabilities are the Cost, Quality, Time, and Flexibility dimensions that a process or value chain actually processes and is able to...
Strategic management is the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment (Kreitner, G13). Strategic management serves as the competitive edge for the entire management process. It effectively blends strategic planning, implementation, and control. Organizations that are guided by a coherent strategic framework tend to execute even the smallest details of their mission in a coordinated fashion. The strategic management process includes the formulation of a strategy/strategic plans, implementation of the strategy, and strategic control. A clear statement of the organizational mission serves as the focal point for the entire planning process. People inside and outside the organization are given a general idea of why the organization exists and where it is headed. Working from the mission statement, management formulates the organization's strategy, a general explanation of how the organization's mission is to be accomplished. Then general intentions are translated into more concrete and measurable plans, policies, and budget allocations. Implementation is the most important part of the strategy. Strategic plans must be filtered down to lower levels to be success. Strategic plans can go astray, but a formal control system helps keep strategic plans on track. In the strategic management process general managers who adopt a strategic management perspective appreciate that strategic plans require updating and fine-tuning as conditions change. Given today's competitive pressures, management cannot afford to let strategic plans sit as is. A strategic orientation encourages farsightedness. Sun Microsystems Inc. is one company that developed a strategy to become the competitive leader and become the most reliable in the net business. I will explain how Sun's strategy integrates their marketing, management, technology, and service functions into one effective strategy. First I'll discuss who Sun is and what encouraged them to develop their strategy.
Delivering value. Finally comes delivering. It may be compared to place in the 4Ps approach. However, it is different because, while place requires just having a place where the customer can buy a product, delivering also involves making sure the customer will be able to get the most of the product.
This strategy assumes that an articulated business strategy is the driver of both organizational design choices and the design of IT infrastructure. The alignment is said to be the most common and widely understood perspective, as it corresponds to the classic, hierarchical view of strategic management.
Strategic planning is a critical process for any successful business. It outlines the framework in which the organization operates. Therefore, each area of the process should be carefully considered and developed, with the understanding that some areas are relatively static, whereas other areas change and grow depending upon the environment. By far, the most important part of the strategic planning process is its implementation. If the process is never implemented, its development is just wasted energy.
Strategic planning consist of four steps starting from defining the company’s mission. When talking about a mission were talking about a certain phrase or slogan for say, that is intended to draw attention to customers and make them want to be even more loyal to the company. For example Walmart says, “Save money. Live Better”. Therefore, Walmart’s mission would be to let people know that they have low prices all day every day, insinuating that their products are affordable for everyone. This is a good mission because it gets the majority of the people in this world to want to go out and save money on their everyday necessities and even luxuries. The second step would be to set certain objectives and goals for the company as well. For example, CVS did use “Health is everything” as their mission and this didn’t just set out for a name it became a goal as well. Sooner or later you must set goals on your mission to understand the level that you need to get to and reach. Another example of a goal that I believe CVS set was to start selling healthier products. In the chapter it says that CVS stopped selling tobacco and other products that
The strategic planning process is the formulation of the company’s major objectives and execution plans. This process is of particular interest in GE. Strategy formulation is the process of choosing the best methods for a company where customer needs; competitive position and internal capability are the three factors that play the main role in strategic planning. Every manager needs to have at least a simple notion of strategic planning to formulate his strategic plans. Strategic Planning is a wide and complex subject. Strategic Management background is an essential basis of any organization.
Strategic Planning is looking at where you are now, knowing where you want to be in the future and planning the steps to get you there.
Strategic planning is the continuous and systematic process of guiding members of an organization to make decisions about its future, develop the necessary procedures and operations to achieve that future, and determine how success will be achieved.
Strategic planning has a focus on stabilizing the current environment, and it also support the organization's business plans and goals. Strategic planning helps to implement new projects, new technology, consolidation of data centers, data warehouses, exponential data growth, cost of ownership, and resources available in an organization to assess the future requirements. Strategic planning analyzes the business plan, potential blockage or other issues in the current architecture, processes and their implementation in new initiatives, and processes. Strategic planning helps to formulate the ideas about the key factors that are affecting the present and future development of the organization and the opportunities offered by the environment and the competence of the organization.
Strategic planning is an organizational process in which it looks towards developing and sustaining success or balance in its ever changing environment.
Curtis G. & D. Cobham (2002: 4th edition) Business Information Systems: Analysis, Design and Practice. Essex: Pearson Education Limited