A strategic information system are computer systems that helps companies change or alter their business strategy and/or structure. They apply information to strategic business opportunities in a way that has an impacts on the organization’s products and business operations.
Most information systems support business activities by automating business operations for better efficiency and effectiveness, but they do not increase the corporate profitability. These systems are simply used to provide the managers information for to ensure the smooth running of the business and for analysis to plan new directions. However, Strategic information systems not only has become an integral and necessary part of the business, they affect the profitability and growth of the company. They provide new markets, new businesses and affect other competitors.
Many organizations that have done substantial amount of work with computers since that 1950’s have long used the term “strategic planning”. This term is used for any computer development that directly affects the conduct of the business. If a manager is interested in the outcome of a systems development because they feel it would affect their profitability, then the system is strategic.
A strategic system matches the information services resources to the business strategic opportunities where the computer systems will have an effect on the products the business produces or the operation of the business. Planning for strategic systems is not marked on calendar cycles or routine planning, rather it is the effort that is required to have an impact on the competitive environment and the firms strategy at that time that the management wants to implement on the idea.
Strategic systems will be effective only if the company is able to gather data, evaluate possible equipment and software and manage the routine reporting of the status of the project.
The key features of a Strategic Information Systems are:
(1) Decision support systems that allows a company to develop a strategic approach to align Information Systems or Information Technologies within the business strategies.
(2) Primarily Enterprise resource planning solutions that integrates the processes of the business to meet the objectives of the enterprise for the optimization of the enterprise resources.
(3) Database systems that has the “data mining” capabilities can make the best use of the available corporate information for marketing, production, promotion and innovation. Strategic Information systems also identifies data collection strategies to optimize database marketing opportunities.
(4) The real-time information systems that maintain a rapid-response and the quality indicators.