To improve customer/supplier links Facilitate product design Improve productivity Levels of strategy Business The system has boosted productivity by up to 95% and has improved stock picking accuracy by 600%, resulting in a reduction of credit claims by 45%. SEJ has market driving business strategy of high density, consolidated store openings which is the key to efficiency and stability. mavengere@gmail.com. Management Information System – Management Information System uses input from the TPS and processes the data to convert it into actionable information or reports. Present usage of information systems and technologies of MBSL 2.1 Human Resource Information System (HRIS) HRIS is a management system designed specifically to provide managers with information to make HR decisions. Information system - Information system - Acquiring information systems and services: Information systems are a major corporate asset, with respect both to the benefits they provide and to their high costs. It was also selected by Computerworld magazine for three out of the past four years as number one place to work in information services. Running Head: ROLE OF STRATEGIC INFORMATION SYSTEM. (Weill and Nagayama, 2004) This paper reviews the recent literature and popular research to explain the strategic role of Information System (IS) in modern business. A strategic IS helps an organization gain a competitive advantage through its contribution to the strategic goals of an organization and its ability to significantly increase performance and productivity Information system can help strategize an organizations business model or enhance existing ones to give it an edge over its competitors. The analysis of IS strategy procedure done by (Porter and Miller, 1985) as cited in (Benova and Gregus, 2006) stresses that management of information systems can no longer be the individual aspect of the EDP function such as accounting and record keeping, focused on cost control and reduction). … Information system is simply a tool to achieve business strategy. A Strategic Information System (SIS) is a system to manage information and assist in strategic decision making. It was at this point that SPST members gravitated towards the Internet initiative. These systems include transaction processing systems (TPS) at the operational level, office automation systems (OAS) and knowledge work systems (KWS) at the knowledge level, management information systems (MIS) and decision support Systems (DSS) at Home Depot required to process and present information in terabyte (one trillion characters). They are the core of the information management discipline … Its role is to support the key aspects of running an organization, such as communication, record-keeping, decision making, data analysis and more. The literature also suggest generally an IS strategy and organization strategy are driven by business strategy. 4 | P a g e 2. Home Depot’s new approach resulted very profitable. Many other research also agree that while the IS/IT strategy has had a several positive impact on business, at the same time It has failed to understand the significant difficulties in implementing those complex system. The MIS generated reports can be used for various purposes, including operational control, short term, and long term or strategic planning, as well as management control and other types of managerial problem-solving. Based on literature point of view, the aim of the strategic management of information system is to determine the role of general managers in terms of taking decisions regarding IS strategy. (Handling-Network.com, 2013). (Peterson and Saunders, 2009) admit that decision about the IS strategy cannot be made totally relaying on information accumulated from the highly skilled professionals assigned in the field of IS. The case study describes how the Seven Eleven Japan (SEJ) one of the world’s largest convenience store chains headquartered in Japan strategically implemented Information system to become the leader of the retail business in Japan. Aspects of the role of information in strategic decision-making by executives in industry are hardly ever mentioned in management research publications. Process. By strategic we mean the long-term, far-reaching role of IT systems in an organisation. Strategic information system helps organizations to develop their generic strategies in order to attain competitive advantages. Businesses implemented numerous successful IT-based strategic systems during the period from 1970 - 1990s, the companies that owned them to gain a competitive advantage for several years before competitors make a replica of their systems (Turban et al, 2006; Hammatfar et al, 2010). (2001) over Home Depot helps to explain how IS strategy is linked with business strategy and how business can be benefited from the strategic use of IS strategy – Home Depot according to Albers, B. SIS helps organizations to evaluate their data requirements and maintain records with minimum cost and maximum effectiveness. The framework shows the relationship between the IS strategy with organisational and business strategy within an organization. Air Asia’s business strategy is centered on cost leadership§ and targets specific markets which are price sensitive customers (including 1st time fliers) who needing the short haul flights. SEJ has been very successful that it has never experienced any deficit since its first operation in 1974. (Turban et al, 2006; Hammatfar et al, 2010) believe that Implementing IS strategy could be a complex task due to the degree and the complex environment of the systems. Strategic information systems (SIS) are information systems that are developed in response to corporate business initiative. The speed of the product pickup has improved from 160 to 260 cases per hour. Management: Management is the art of getting things done through and with the people in formally organised groups. Toshifumi Suzuki, CEO of Seven-Eleven Japan (SEJ) said," Don’t rely on the Information system. In 2000, it made the record fiscal year sales of $45.7 billion. Roles of Information System in Airline Business. The highly integrated analysis system provided by the fifth generation total information system collects mass quantities of data and created value added information for original product development and store support services. The research indicates that the product selection and appropriate order quantity is not guaranteed by the accuracy of the data itself for strong sustainable sales rather the decision should be relied on analysis of the order variance upon whether and the temperature. The software system capable of handling this amount of data was developed by the help new innovative SPST, as a result the objective was achieved within six and a half weeks. The online products were available in all stores, online purchases could be returned to any outlet and Web site information was readily available for any customer who entered the bricks and mortar establishment. (Hemmatfar et al,2010) says that the use of advanced information systems in value chain activities allows companies to enhance competitive differentiation as well as attain cost leadership and consequently gain sustainable competitive advantage. A strategic IS helps an organization gain a competitive advantage through its contribution to the strategic goals of an organization and its ability to significantly increase performance and productivity Information system can help strategize an organizations business model or enhance existing ones to give it an edge over its competitors. Strategic ISs are designed to establish a profitable and sustainable position against the forces that determine industry competition. There must be constant adjustment between all three strategies. The Role of Information Technology in Management - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Many believe that the way organizations manage inf… According to the case 43% of SEJ’s gross profit is generated from the royalty that the franchisee pays to the franchiser. Nicholas Blessing Mavengere . GM often have to demonstrate a clear understating of the information system of the company compare with those of their competitors, they must be prudent about the consequences of improper use of IS/IT. Sorry, preview is currently unavailable. The role of a management information system, or MIS, can vary from one company to another in its details, but its overall purpose is generally the same: to improve the efficiency of daily transactions, operations, management and business strategy through the analysis of relevant information. Academia.edu uses cookies to personalize content, tailor ads and improve the user experience. The system has four major features; 1) High efficiency, maintainability and reliability of the total network system, 2) Internet shopping site, 3) In store intelligent copy machine and 4) The store information system which encourages all store staff to participate in ordering. A Strategic Information System can be any IS at any level of an organization that change the goals, processes, products, services, or environmental relationships to help the organization gain a competitive advantage. Information resources maximise the effectiveness of the firm’s business strategy, it reduces the firm’s cost of the production and increase efficiency in production and add value to the products and services to gain competitive advantages over competitors. study revealed that there is a significant role of strategic information systems on increasing operational efficiency, improving the quality of information and promoting innovation. Information system is simply a tool to achieve business strategy. SEJ has expanded its business internationally over 18 countries with 24,912 stores. Introduction. Role of Strategic Information System. The major problem that companies now face is how to sustain their competitive advantage. Strategic information system (SIS) is increasingly becoming important integration unit in many business application services. SEJ has been able to achieve competitive advantages over competitors because of the pursuing such IS/IT initiative. The case study also describes that how Seven Eleven Japan (SEJ) has effectively developed new business model to transform the retail sector in Japan. • Information systems that promote business innovation, improve operational efficiency. L Ch2: The Strategic Role Of Information Systems LEARNING OBJECTIVES LEARN ROLES OF 6 TYPES OF INFORMATION SYSTEMS DISCUSS TYPES OF INFORMATION SYSTEMS – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 3f7a39-N2NiM In June of that year, they faced a massive change as the Home Depot Web site was developed. The case study done by Albers, B. (2001). Hemmatfar et al (2010) believes that primary activities are directly concerned with the creation or delivery of a product or service, as primary activities and support activities are distinguished by Michel Porter (1985). According to the research SEJ stores serve 9.5 million customers in a daily basis, 5 million orders are processed daily and 35 million sales transactions are transferred to the Information systems centre (ISC) the whole process of data collecting, integrating and analysing is carried on. Consequently each has needs for different types of IT systems. In business, management information systems (or information management systems) are tools used to support processes, operations, intelligence, and IT. Abstract: The ability of a company to either adapt to the changes in the business environment or to influence the According to Porter’s generic … This information system team was initially created by comprising three members, in 1997 when the organization was involved in a large-scale legal case. Now that we have explored the different components of information systems, we need to turn our attention to the role that information systems play in an organization. Flat M2 School of Information Sciences, University of Tampere, Finland . Charalambous Tower SEJ have 700 private whether centres individually covering a radius of 13 miles, which sent 5 reports electronically every day at store terminals. Information Systems Strategy: is a plan to help organization outperform its competitors - Doing things differently - Provide value at lower cost ‘‘A strategic information system is (one) that supports the competitive strategy of the organisation, e.g. A Classification of the Strategic … We shouldn’t use the technology unless we can understand what the information means on paper." 3.Role of Information Technolog y in Strategic Information system Due to emergence of Information tec hnology, number o f businesses had to change their business model and Therefore, it evaluates which value each particular activity adds to the organizations products or services. The radio frequency based voice control device automatically converts the electronic orders in to speech which further transferred to the warehouse staff that uses secured wireless technology. By 2003 SEJ became the Japan largest convenience store chain with $17.5 billion revenue and 5061 workers. 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