Реферат: Strategic Information Systems Essay Research Paper The

Strategic Information Systems Essay, Research Paper

The Path of Development of

Strategic Information Systems Theory

Zedrik Avecilla

Abstract

During the last 15 years, an area has developed within the Information Systems discipline which is generally referred to as ’strategic information systems’. It concerns itself with systems whose importance to the organisation extend beyond merely assisting it to perform its existing functions efficiently, or even just effectively. A strategic information system is instrumental in the organisation’s achievement of its competitive or other strategic objectives.

This paper presents a critical summary of the literature, and is accompanied by an extensive reference list. It begins by tracing the development of contemporary theory about strategic uses of corporations’ internal information systems, primarily from Porter’s theories relating to competitive strategy. This leads to discussion of systems which transcend the boundaries of particular organisations and are associated with cooperation between them. The process whereby strategic information systems are created or identified is then examined.

A number of weaknesses in the existing body of theory are identified, and suggestions made as to directions in which knowledge is or may be progressing.

Introduction

The topic of ’strategic information systems’ is concerned with systems which contribute significantly to the achievement of an organisation’s overall objectives. The body of knowledge is of recent origin and highly dynamic, and the area has an aura of excitement about it.

It is risky to attempt a historical exposition of such a recently emerged topic. On the other hand, the line of development which the conventional wisdom has followed is itself interesting and instructive. This paper is prepared as an introduction to the literature, but embodies interpretation in both its structure and its expression, and should therefore be read with at least as critical a disposition as any other paper in the area. It may also be compared with other critical interpretations such as Swatman & Swatman (1992), Galliers (1993) and Ciborra (1994).

The notion and its origins are first discussed. The emergence of the key ideas is then traced. The process whereby strategic information systems come into being is assessed. Finally, areas of weakness are identified, and directions of current and future development suggested.

Origins

The role of Information Systems (IS) has developed during the years. The original conception was of automation of existing manual and pre-computer mechanical processes. This was quickly succeeded by the rationalisation and integration of systems. In both of these forms, IS was regarded primarily as an operational support tool, and secondarily as a service to management.

During the 1980s, an additional potential was discovered. It was found that, in some cases, information technology (IT) had been critical to the implementation of an organisation’s strategy. The dominant sense in which the term is used is that a strategic information system (SIS) is an information system which supports an organisation in fulfilling its business goals.

An alternative interpretation of the term is that it is not necessary a particular IS, but rather the combination of those parts of an organisation’s cluster of information systems which provide information into its strategic planning processes (Higgins & Vincze 1993. p.93). The functions involved include the gathering, maintenance and analysis of data concerning internal resources, and intelligence about competitors, suppliers, customers, government and other relevant organisations.

A variety of interpretations of strategy exist, most of which have a great deal to do with competition between corporations. Chamberlin’s theory of monopolistic competition sees corporations as being heterogeneous, and competing on the basis of asset differences, such as technical knowledge, reputation, ability for teamwork, organisational culture and skills, and other ‘invisible assets’ (Chamberlin 1933, Itami 1987). Competition therefore means cultivating unique strengths and capabilities, and defending them against imitation by other firms. Another alternative sees competition as a process linked to innovation in product, market, or technology (Schumpeter 1950).

Porter’s Strategic Theory

The context within which SIS theory emerged was the competitive strategy framework put forward by Porter (1980, 1985), which was based on industrial organisation economics. For developments along that path, see Kaufmann 1966, Kantrow 1980, Pyburn 1981, Parsons 1983, EDP Analyzer 1984a, 1984b, McFarlan 1984, Benjamin et al 1984, Wiseman & Macmillan 1984, Ives & Learmonth 1984, Cash & Konsynski 1985, Porter & Millar 1985, Keen 1986, King 1986). This first section outlines the basis of that theory. Strategic information systems theory will then be shown to be concerned with the use of information technology to support or sharpen an enterprise’s competitive strategy.

Competitive strategy is an enterprise’s plan for achieving sustainable competitive advantage over, or reducing the edge of, its adversaries. In Porter’s view, the performance of individual corporations is determined by the extent to which they cope with, and manipulate, the five key ‘forces’ which make up the industry structure:

? the bargaining power of suppliers;

? the bargaining power of buyer;

? the threat of new entrants;

? the threat of substitute products; and

? rivalry among existing firms.

Porter’s classic diagram representing these forces is reproduced in Exhibit 1. Enterprises, through their strategies, can influence the five forces and the industry structure, at least to some extent.

There are two basic strategic stances that enterprises can adopt:

? low cost; and

? product differentiation.

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