Strategic information system


A strategic information system is a computer used by organizations to analyze market and competitor information in support of business planning. It contributes to corporate strategy by linking organizational requirements with information technology. This linkage is intended to assist organizations in responding to ongoing changes in the business environment, including competitive conditions.
In addition, SIS may support decision-making by providing data analytics, trends, and metrics. These capabilities can be used by managers to assess opportunities, evaluate risks, and examine operational efficiency. By integrating internal organizational processes with external market information, a strategic information system supports both operational decision-making and longer-term planning.

Importance

Strategic information systems consolidate data from internal operations and external market variables to assist in long-term planning. The integration of these datasets allows for the identification of competitive trends and the alignment of IT infrastructure with organizational goals.

Types

  • Cost strategy: It helps companies reach the lowest costs in the industry through business process engineering, reducing costs from suppliers, and reducing costs to customers.
  • Differentiation strategy: It involves providing products or services that differ from those of competitors.
  • Focus strategy: It helps companies focus on specific products or services within the organization.
  • Innovation strategy: It provides products or services with the latest innovations.
  • Alliance strategy: It creates cooperative relationships that benefit both suppliers and other companies, even with competitors.
  • Growth strategy: It helps companies develop and diversify their market.
  • Quality strategy: It helps improve the quality of products and services.
  • Market Penetration Strategy: Expanding sales of existing products in existing markets through pricing, promotion, or distribution improvements.
  • Product Development Strategy: Creating new or significantly improved products for existing markets.