formulating information system for large scale service firm

University of DhakaDepartment of Management Information Systems

MBA (Evening) ProgramPrepared For :Professor Md. Abul KashemCourse Name : Strategic Management& Information Systems Course Code : EMIS -531

Prepared by:Shaida Binte Shams ( ID:6152922039)

Welcome to the presentationon

Formulating Information System for

Large-Scale Service Firms

What is Strategic Information Systems (SIS)? • Strategic information system (SIS) is any information systems that can help an organization

achieve a long-term competitive advantage. SIS can gain the new opportunities to the business. • By using the SIS organization can plans the strategy of its future operations and strategic

decision making. • This system can make by developing or modifying the existing information system or used the

existing system for strategic advantages. • When the information system be a strategic information system it should be full fill the two

conditions:1. The information system must serve an organizational goal rather than simply provide

information.2. The organization’s IS unit must work with managers of other functional units to continue the

organizational goal.

Different Types of SIS 1. Outward systems: aimed to compete directly with other

companies in the industry2. Inward systems: directed to enhance the competitive

position of an organization by increasing employee productivity, improving teamwork, and enhancing communications between various components of the organization.

3. Hybrid systems: for e.g. CAT combined both outward (EDI and CAT TV) and inward (computer integrated manufacturing).

4. Strategic alliances: two or more companies share a SIS. Eg. Banks share the same ATM network.

Information Systems and Business Strategy

Why we need Strategic Information Systems (SIS)?• Businesses use these systems to achieve a competitive advantage on

their competitors as they seek to provide a good or service in a way that is better than that of their competition. • When try to achieve the organization business strategy the correct

information play the most significant roll. So it is essential to provide efficient information to the managers to do this task.

Relationship with IS and Business organization

Business strategy levels Organization can be seen main three level of strategies as: corporate levelbusiness level operational level

• The corporate level consider the selection of businesses in which the company should compete and with the development and coordination of that portfolio of businesses. This level have responsible for creating value to the businesses. • A strategic business unit can be a division, product line, or other profit

center that can be planned independently from the other business units of the organization. In this level, the strategic issues are less about the coordination of operating units and more about developing and sustaining a competitive advantage for the goods and services that are produced.

• Operational level consider the strategies of department such as marketing, finance, operations, human resources, and Research and development .Here involve the development and coordination of resources After develop the hire level strategies this level convert that in to the effective a discrete action plans.

Alignment of IS with business strategiesTo achieve the business strategies, we can use the type of information system according the organization strategy level. The Senior Managers and Chief Executive officers are involve make the cooperate level business strategies. So the Executive support system is most applicable for this level. It is help to address non-routine decisions requiring judgment, evaluation, and insight regarding organization. It incorporates data about external events as well as summarized information from internal MIS and DSS.

Model of an Executive Support System

Decision Support System

This IS provided facilities to the middle managers to take the non-routing decision. External information, information form the MIS and TPS are used by this system. Middle manager can make analytical decision regarding the business process.

Decision Support SystemThis IS provided facilities to the middle managers to take the non-routing decision. External information, information form the MIS and TPS are used by this system. Middle manager can make analytical decision regarding the business process.

• Management information system:This system also provides the facilities to the middle level managers to provide reports on firm’s current performance, based on data from TPS. Also provide answers to routine questions with predefined procedure .this system typically have little analytic capability.• Office automation system:These information systems can the make collaborations among the office functions.it digitally create, collect, store, manipulate, and relay office information needed for accomplishing basic tasks. Such as communication, printing, data filing, fax, report transferring, telephone and telephone switchboard operations. Especially local area network system to establish this system and it help to increase the efficacy of the office operation in organization.• Transaction processing systemData workers, operation managers, personal supervisor are involving the operational levelstrategic marking. So the transaction processing system can provide facilitates to this level.This TPS can perform and record daily routine transactions necessary to conduct business(Examples: sales order entry, payroll, and shipping) It allows managers to monitor status ofoperations and relations with external environment. It helps to predefined, structured goals and decision making

Strategies for the implementation of IT DepartmentIn the large organization we can identify below mention strategies to implement the IS department.

1.Decentralized:Implement Information Technology department in the each function area separately. Each department has to report to Chief information officer.

2.Separate department under centralcontrolUnder this organization, theinformation systemsdepartment is a unifieddepartment under the controlof the CEO and Board ofDirectors.

3.Each division has separate group butall under central controlIn this organization, usually found in very large companies, separate divisions each have their own information systems department dedicated to that division alone. These divisional groups are still centrally controlled.

Conclusion • Information system is most interactive concept. Business organization needs the

effective information to take the business strategic decisions. The IS is used by the organization to generate the information as well as archive specific business strategic objectives. • Among the different type of the IS, organization should use the most relevant IS

type with the most relevant Management levels. There are new strategic IS model to gain a competitive advantage to the business.• Strategic information system can provide the long time benefit to the

organization. It help to gain new opportunities for long time to the organization. So establishment of IS is require more fact to consider according to the business organization and the correct strategies can help to become overall success of the business

References• http://

www.slideshare.net/SusanthaKumara2/why-we-need-strategy-for-information-system-and-information-technology• 2.Strategic Information Management - Challenges And Strategies In

Managing Information Systems