A strategic information system (SIS) is a computer system used by organisations to analyse market and competitor information, helping them plan and make their business more successful. It shapes the corporate strategy of an organisation by providing a connection between the organisation's demands and the latest information technology. This connection helps the organisation adapt to the continuous changes in the corporate environment; thereby gaining a competitive advantage [1]
Importance of strategic information systems
SIS supports in decision making by providing useful information to executives and managers. It integrates data from various internal and external sources to give a comprehensive understanding of organisations performance and market trends[2]
It can give a business competitive advantage by offering insightful data, also helps in identifying opportunities and risks giving business advantage over its competitors[3]
It aids in achieving company's long-term goals and objectives[4]
Types of Strategic information systems
- Cost leadership strategy: Helps company reach the lowest costs in the industry through business process engineering, reducing costs from suppliers, and reducing costs to customers [5]
- Differentiation strategy: Provides products or services unique and offering more value to customers compared to competitors [5]
- Focus strategy: Helps companies focus on specific products or services within the organisation.[5]
- innovation strategy: Provides products or services with latest innovations[5]
- Alliance strategy: Creates cooperative relationships that benefit both suppliers and other companies, even with competitors[5]
- Growth strategy: Helps companies develop and diversify their market[5]
- Quality strategy: Helps improve the quality of product and services [5]
References
