Thursday, November 1, 2012

Lecture 2- Strategic Role of Information Systems

Information systems rely on information technology. Information system is a subset of a information technology and with the development with the information technology, information systems also go align with it and developing day by day.

Theory and Application:

As stated by Ward and Peppard (2002) information technology has become must or very essential because the effectiveness of the business depends on the  information technology . As an example industries like telecommunication, media, entertainment where the products have already digitized and the existence of the organization highly depend on the effectiveness of the application of information technology.

From above mentioned paragraph can see the importance of the information technology for now a day organizations. Now it has become a must to organization like organizations cannot survive without the information technology. Information technology fills the gap between software and hardware and help to do most of the organizational works in an efficient way.

Strategic Information System Planning

                                        Table 1: The Three Era Model of IS (Pant and Hsu, 1995)

Above table illustrated of the development of the information systems. It explains how the information used during different time period. Information technology helps to capture, create and use in communication in information system. Information system store data for future use. This called information processing. In previous post has discussed about 5 Cs which involves in data processing in information system.

Information System has main five components. They are, people, data, software,hardware and telecommunication.

People- end users, stakeholders
Data- internal and external
Software- Value addition, conversion (transformation for productivity and efficiency)
Hardware- Hardware depends on software
Telecommunication- voice, data and multimedia

Before implementing systems to companies first need to look at the objectives, goals etc. (Strategic planning) in the organization and align to those need to implement systems to the organization. Which means need to have a basic knowledge of internal and external behavior of the company.

Figure 1: Strategic Planning Process (Strategic Scenarios, 2011)
Above figure illustrates about strategic planning process in an organization. Which are mainly vision, mission, objectives. 

Vision:
 As mentioned in University of Washington States (2012) vision has defined as " The end result of what you want to have done.  It’s a future oriented, detailed description of outcomes you want to accomplish.  Ideally what you want to exist, or have happen as a result of your efforts".

Vision of Coca-Cola
As stated in Coca-cola (2012) "Our Road map starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference."


Vision statement is a long term achievement of an organization. In a vision statement it defines the company end goal and by seeing at a vision statement anyone would be able to get an idea of where is this organization heading to.

Mission:
As per University of Washington States (2012) mission statement is "a statement of why you exist (organization) or what you want to be (person)."

Mission Statement of Coca-Cola
As stated in Coca-cola (2012)"Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization".


Mission statements supports the vision of an organization. It describes how to achieve the vision by completing the mission of the company.

Objectives:
Smaller steps need to follow in order to achieve the mission and vision. Objectives are short terms achievements. By achieving short terms achievements the organization able to achieve mission and vision of the company in a very effective way.


Application:

Laptops Market
Table 2: Preliminary worldwide vendor Unit Shipment Estimates for 1Q12 (Gartner, 2012)

Above table illustrates of the market share of popular laptops in worldwide. The first place has got by HP which is 17.2 % and second and third places has gone to following Lenovo and DELL percentage of 13.1 % and 11.0%. The main reason for HP is being first place is the technology that they use in their laptops, the price and varieties they have. HP launch laptops for reasonable price and it always able to fulfill the customers needs. 

Reflection:

Day by day information technology get developed. As same as the development of the information technology the information systems also get developed. The main reason for this is information systems run the help of information technology. Information systems cannot survive without the information technology. Now technology has developed to the level of decision making in the standard of artificial intelligence. which means without any human interaction system able to take decisions by itself. 
Three era of information systems clearly shows the development of information systems. Any information system consists of main five components such as people, data, software, hardware and telecommunication.  These components fulfill the 5Cs of the process of information. But these components slightly differ in some information systems and some information systems have six components like in MIS, DSS database also has included as a components. Because for these information systems mainly does help to make decisions. For that these systems need to have a database in-order to give support facts to a decision. 
Strategic planning process of an organization clearly defines of the future of the organization. By defining objectives which are short term achievements help organization to achieve defined values. These are organizational small steps. From achieving these small steps organizations able to achieve long term plans which are vision and mission. These process the reflects the success of the organization. If the organization can achieve organization defined objectives which means  organization is on the right track and able to to have successful way.

References:

Coca-Cola. (2012). Vision and Mission.[Online]. Available at:http://www.coca-colacompany.com/our-company/mission-vision-values [Accessed 1st November 2012].

Gartner. (2012). Preliminary worldwide vendor Unit Shipment Estimates for 1Q12. [Online]. Availabel at:  http://lowendmac.com/newsrev/12mnr/0413.html [Accessed 1st November 2012].

Pant, S & Hsu, C. (1995). The Three Era Model of IS.[Online]. Available at: http://www.mis.boun.edu.tr/tamers/mis524/strpaper.pdf  [Accessed 1st November 2012].

Strategic Scenarios. (2011). Strategic Planning Process. [Online]. Available at: http://futurata.com/strategicscenarios/strategic_planning_process.jpg [Accessed 1st November 2012].

Ward, J & Peppard, J. (2002). The evolving role of information systems and technology in organization: A strategic perspective.[Online].Chichester: John Wiley and Sons. Available at: http://books.google.lk/books?id=YdjKt6DaV8C&printsec=frontcover&dq=strategic+information+systems+planning+by+ward+and+peppard&hl=en&sa=X&ei=bjqfUJnWGoyGrAeh84D4BA&ved=0CC8Q6AEwAA [Accessed 1st November 2012].

Washington States University. (2012). Definitions of Vision and Mission. [Online]. Available at: http://dsa.csupomona.edu/osl/studentmanual/files/Definitions_of_Vision_Mission_and_Goals_294.pdf [Accessed 1st November 2012].

No comments:

Post a Comment