Strategic business objectives of information systems pdf
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By: Zeeshan Ahmed Bhatti. Strategic business objectives of information systems. Strategic Business Objectives of IS. Entire sectors of economy are nearly inconceivable w/out substantial investment in IT E.g., Google, Ebay etc. - PowerPoint PPT Presentation Show
Strategic business objectives of information systels Strategic business objectives of information systemsBy: Zeeshan Ahmed Bhatti Strategic Business Objectives of ISEntire sectors of economy are nearly inconceivable w/out substantial investment in ITE.g., Google, Ebay etc. Today no industry can exist without the use of Information TechnologyFinance, Insurance, Real Estate, Aviation etc. IT has now become the core competence of a firmE.g., HR, Finance etc. 2Strategic Business Objectives of ISThere is an interdependence b/w a firms ability to use IT and its ability to implement corporate strategies and goalsDepends on what technology it uses?What is that technology capable of doing?E.g., Is that technology capable of achieving what the firms wants to achieve in next 5 or 10 years? Specifically, Businesses invest heavily in IS to achieve 6 strategic business objectives:Operational excellence, new products, services, Customer and supplier intimacy, decision making and competitive advantage 3 1) Operational ExcellenceBusinesses continuously seek to improve efficiency of their operations IS helps managers to achieve that E.g., Wal-Mart (Rev. $447 Billion) has a RetailLink system As soon as a customer purchases an item, the supplier monitoring the item knows to ship a replacement52) New Products, Services, and Business ModelsIS a major tool for firms to create new products & services Apple Inc. transformed an old business model of music distribution based on vinyl records, tapes, and CDs into an online, legal distribution model based on its own iPod technology platform. Blockbuster and Netflix !! 6 3) Customer & Supplier IntimacyBusiness wants Customer Loyalty Repurchase behaviorEx. Mandarin Oriental Hotels use IS to keep track of their guest preferences Room temp., Lights; frequently dialed nos. etc Similarly, Business needs to be engaged with suppliers more engagement : less costs JC Penney stores in US sales record appear in Hong Kong (Supplier). They know what sizes, colors and styles are needed. 84) Improved Decision MakingMany business mgrs operate on an information fog bank Never having right info at the right time to make the right decisionE.g., Consider the outage of your Broadband or Cellular Connection Result: Over or Under-production of goods & services, misallocation of resources, and poor response times IS makes it possible to use real-time dataE.g., Verizons Web-based digital dashboard for customer complaints, network performance, line outages etc. 95) Competitive AdvantageDoing things better than your customersE.g., Toyotas TPS (Toyota Production System) focuses on organizing work to eliminate wastes IS help Toyota implement the TPS and produce vehicles (customized) based on what the customers have actually ordered 106) SurvivalNecessity of doing businessNecessities are driven by industry-level changesE.g., Citi Banks ATM initiative in NYC in 1977 urged other banks to do so as well Similarly, some govt. regulations make it necessary e.g., in Pakistan PTAs initiative about customer SIM cards information 11SoWhat is an IS?Information technology (IT) consists of all the hardware and software that a firm needs to use in order to achieve its business objectives An Information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organizationInformation Vs DataData: Streams of raw facts Information: interpretation of data Functions of an ISInput: Collects raw data from within the organization or from external environment Processing: coverts raw data into meaningful form Output: transfers processed info to its users Feedback: by the members to evaluate or correct the input stage E.g., London2012 Website about number of medals; Inputs? Processing? Outputs? W.r.t. Countries, Players etc.Functions of an IS Dimensions of IS Organization / ManagementFirst Line, Middle Mgrs, Top Executives, Knowledge workers Technology:Hardware: Physical equipment for input, processing, and output activities in an ISSoftware: pre-programmed instructions that control and coordinate the computer H/W Networking & Telecommunication Tech: links various pieces of H/W and transfers dataInternet: Network of networksIntranet: internal corporate networksExtranet: private intranet networks extended outside the firmContemporary Approaches to IS Strategic planning for an organization involves long-term policy decisions, like location of a new plant, a new product, diversification etc. Strategic planning is mostly influenced by −
Strategic planning sets targets for the workings and references for taking such long-term policy decisions and transforms the business objectives into functional and operational units. Strategic planning generally follows one of the four-way paths −
In this chapter, let us discuss the Strategic Business Objectives of MIS with regards to the following aspects of a business −
Operational ExcellenceThis relates to achieving excellence in business in operations to achieve higher profitability. For example, a consumer goods manufacturer may decide upon using a wide distribution network to get maximum reach to the customers and exposure. A manufacturing company may pursue a strategy of aggressive marketing and mass production. New Products, Services, and Business ModelsThis is part of growth strategy of an organization. A new product or a new service introduced, with a very fast growth potential provides a mean for steady growth business turnover. With the help of information technology, a company might even opt for an entirely new business model, which will allow it to establish, consolidate and maintain a leadership in the existing market as well as provide a competitive edge in the industry. For example, a company selling low priced detergent may opt for producing higher range detergents for washing machines, washing soaps, and bath soaps. It involves market strategies also that includes planning for distribution, advertisement, market research and other related aspects. Customer and Supplier IntimacyWhen a Business really knows their Customers and serves them well, 'the way they want to be served', the Customers generally respond by returning and buying more from the firm. It raises revenues and profits. Likewise with Suppliers, the more a Business engages its Suppliers, the better the Suppliers can provide vital information. This will lower the cost and bring huge improvements in the supply-chain management. Improved Decision MakingA very important pre-requisite of strategic planning is to provide the right information at the right time to the right person, for making an informed decision. Well planned Information Systems and technologies make it possible for the decision makers to use real-time data from the marketplace when making informed decisions. Competitive Advantage and SurvivalThe following list illustrates some of the strategic planning that provides competitive advantage and survival −
What are strategic business objectives of information system?Specifically, business firms invest heavily in information systems to achieve six strategic business objectives: operational excellence; new products, services, and business models; customer and supplier intimacy; improved decision making; competitive advantage; and survival.
What are the six important business objectives of information system?The six important business objectives of information technology are new products, services, and business models; customer and supplier intimacy; survival; competitive advantage, operational excellence, and: improved decision making.
Which is not a strategic business objectives of information systems?Improved employee morale is not the strategic objective of an information system. Thus, it is the correct option.
What is the best strategic business objectives of MIS?Competitive Advantage and Survival
Planning for an overall growth for the company. Thorough market research to understand the market dynamics involving demand-supply. Various policies that will dominate the course and movement of business. Expansion and diversification to conquer new markets.
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