Strategic Information System

A Strategic Information System (SIS) is a type of Information System that is aligned with business strategy and structure. The alignment increases the capability to respond faster to environmental changes and thus creates a competitive advantage. An early example was the favorable position afforded American and United Airlines by their reservation systems, Sabre and Apollo. For many years these two systems ensured that the two carriers' flights appeared on the first screens observed by travel agents, thus increasing their bookings relative to competitors. A major source of controversy surrounding SIS is their sustainability.

Strategic Information System (SIS) is a system to manage information and assist in strategic decision making. A strategic information system has been defined as, "The information system to support or change enterprise's strategy." by Charles Wiseman (Strategy and Computers 1985).

Strategic information system is different from other systems as: -

• they change the way the firm competes.
• they have an external (outward looking) focus.
• they are associated with higher project risk.
• they are innovative (and not easily copied).

Strategic Information System

• if it enables or supports changes in an organisation's products or service, or the way it competes in its industry.
• it has significant impact on business performance
• it contributes to attaining a strategic goal
• it fundamentally changes the way the company does business

Competitive Impacts of SIS

·         product development cycle

·         product quality enhancement

·         sales force and selling support

·         order cycle automation

·         office cost reduction

·         channel and inventory management

·         reduction of management levels

·         product features enhancement and threat of substitution

Factors characteristic of SIS

·         changes relationship between organisation and customers

·         facilitates being proactive to customers

·         more timely and reliable information

·         better communication within organisation

·         enables monitoring of performance of organization

·          gives management information for decision making    

Types of Application Systems ...

• Management Support Application Areas
• Transaction Processing Systems
• Decision Support Systems
• Group Support Systems
• Geographic Information Systems
• Executive Information Systems

• Functional Support Application Areas
• Office Automation
• Factory Automation

Types of Application Systems

• Technology-Based Application Areas
• Artificial Intelligence
• Virtual Reality

• Architecture-Based Application Areas
• Distributed Systems
• Client/Server Systems

• Computer Integrated Manufacturing (CIM)