Competitive Advantage and Strategic Information System

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International Journal of Business and Management

Vol. 5, No. 7; July 2010

Competitive Advantages and Strategic Information Systems
Mahmood Hemmatfar, Ph. D. Faculty Member of Islamic Azad University, Brojerd Branch, Iran Mahdi Salehi, Ph. D. (Corresponding author) Assistant Prof. Department of Accounting and Management Ferdowsi University of Mashhad, Iran Tel: 98-912-1425-323 E-mail:

Marziyeh Bayat, Ph. D. Faculty Member of Islamic Azad University, Hamedan Branch, Iran Abstract

Information edge and 3rd millennium predisposed so many of revolutions. Business organization with emphasize on information systems is try to gathering desirable information for decision making. Because of comprehensive change in business background and emerge of computers and internet, the business structure and needed information had change, the competitiveness as a major factor for life of organizations in information edge is preyed of information technology challenges. In this article we have reviewed in the literature of information systems and discussed the concepts of information system as a strategic tool. Keywords: Strategic information systems, Information technology, Information sciences, Decision support systems, Competitive advantages 1. Introduction

The potential usefulness of different kinds of Information System (IS) for environmental management is well recognized (Díez et al, 2009). Perhaps we can say advances in information provision have led organizations to attempt to develop IS or information technology (IT) strategies which interrelate with their business strategies and which together support corporate missions (Rogerson et al, 1994). The three general types of IS that are developed and in general use are financial systems, operational systems, and strategic systems. Well-directed financial systems and operational systems may well become the strategic systems for a particular organization. Relationship between IS functions and corporate strategy was not of much interest to top management of firms in recent years and so many problems because of failure in achieving strategies and that disconnecting for organizations go to existence. Modern organizations are increasingly seen as knowledge-based enterprises in which proactive knowledge management is important for competitiveness (Holsapple et al, 2000). One of the hot research topics in new decades is research about strategic IS and its aspects and Project management IS has changed considerably over the last decade (Ahlemann, 2009). One of the major factors in competitive environment is knowledge management and companies for achieving the competitive advantages should concentrate in its IS. IS has a vital role in business operation and financial and non-financial aspect such as decision making as a big role of management. ISs were thought to be synonymous with corporate data processing and treated as some back-room operation in support of day-to-day mundane tasks (Rockart, 1979). Nevertheless, in the 80’s and 90’s, there has been a growing realization of the need to make ISs of strategic importance to an organization. Strategic SISs are systems that support or shape a business unit’s competitive strategy (Callon, 1996, and Neumann, 1994). Strategic ISs are touted throughout the trade press and the academic literature as the way to achieve the greatest benefits from an investment in new IT (Bajjaly, 1998). An SIS is characterized by its ability to significantly change the manner in which business is conducted, in order to give the firm strategic advantage (Turban et al, 2006). In literature we have many definitions for strategic IS such as: "The IS to support or change enterprise's strategy" (Wiseman, 1985). But clear definition is "a system that helps companies change or otherwise alter their business strategy and/or structure." It is typically utilized to streamline and quicken the reaction time to environmental...
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