Developing Information Systems/Information Technology Strategies

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DEVELOPING INFORMATION SYSTEMS/INFORMATION TECHNOLOGY STRATEGIES

INTRODUCTION
Despite the ongoing deliberation about the strategic importance of IS/IT, the purpose of IS/IT within any organisation and people is rapidly evolving. Moreover invitation of IT/IS in boardrooms is being applied towards rendering top-line values and business transformations. Ward and Peppard viewed “Information system as a procedure of applying technology, gathering technology, processing technology and the utilization of technology to propagate information by means of people and organisations respectively”. Information systems is in relation to both social and technological developments which involve the study of theories and practices that determine the phenomena, purposes, and the effect of information systems in organisation and the society. For instance, Dell Company has a system where the necessity of human interference for taking customers order is void. With this model, information is perfective and demand and supply occur in real-time. Information Technology is greatly starting to be considered in organisations today as a tool for managing business information. This essay is aimed at making organisations cognisant to the benefit, the critical success factors, and the barriers of development of IS/IT strategies. Furthermore, it will give an insight on how change can be managed in an organisation. WHAT IS IT/IS STRATEGY

Organisations should have an idea of what the average profitability of the company is and how it changes over time. According to Porter “Understanding the forces that shape’s organisational competition is the starting point for development strategy”(Porter, 2008 P.12). Strategy in other words can be seen as a building defense against the competitive force or finding a position in the organisation where the forces are weak. It is also a process of determining how best to position an organisation in its competitive environment, in order to accomplish and sustain competitive advantage. Therefore, developing an IS/IT strategy is thus, thinking in a strategic way and planning for effective long term management for organisational growth and improvement. “IS/IT strategy is defined as the investment necessitated to achieve the ideal application portfolio, the nature of the benefits within the constraint of resources and systems interdependencies”. (Ward and Peppard, 2002 P.44).

THE RELATIONSHIP BETWEEN IS/IT STRATEGIES
BUSINESS STRATEGIES
* Business decisions
* Objective and Direction
* Change

IT STRATEGIES
* Activity Based
* Supply Oriented
* Application Focus
IS STRATEGIES
* Business Based
* Demand Oriented
* Application Focus
HOW IT CAN BE DELIVERED
WHERE IS THE BUSINESS GOING AND WHY
WHAT ARE THE REQUIREMENT

SUPPORT BUSINESS
DIRECTION FOR BUSINESS

INFRASTUCTURE & SERVICES
NEEDS FOR PRIORITIES

(WARD AND PEPPARD 2008, P.41)

The main reasons why organisations decide to start developing an IS/IT strategy.

The purpose of an IS/IT Strategy is to define the information requirements of an organisation as well defining a project charter and success criteria that will bring maximum returns, after deploying the proffered IS/IT Strategy for the organisation. The main reasons why organisations decide to start developing IS/IT strategies are: 1. To gain competitive advantage from business opportunity created: Gaining competitive advantage has to do with dealing with the strategic aspect of competitor in the market. Therefore using IS/IT helps the organisation get their requirement in real-time. 2. To build a cost effective infrastructure: It provides a cost effective systems that allows organisation gain more with less effort. For instance internet provision for selling products makes it easier for the customers to transact online, in any location they are.

3. For the alignment of IT with the business.
4. To deploy IT...
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