Strategic Information System | Competitive Advantage & Market Research (2023)

Why do companies focus on information systems?

Businesses are increasingly relying on information systems, but what's the big picture? Which aspects of an organization are most important to measure? When we think of IT best practices, we usually think of software development; the processes behind building, testing, and implementing an app or system, business intelligence, etc. But that's only part of the picture. Business analysis and project management involve much more than isolated information systems. Workflow – this refers to the process of how a company moves from A to B, such as B. the handling of customer service requests, or the process of how a product gets from design to market and finally to support. Planning - a company must ensure that it has all the necessary resources, such as B. workers, has.

Strategic information system involves having a long-term vision, defining business goals, setting goals, and taking steps to achieve those goals and addressing organizational issues. Strategic information system keeps the organization focused on its vision and organizational transformation. It is used to provide information about the current situation of an individual, group or organization. It is a conceptual system that helps to understand the current and future environment in which a person or organization operates. A Strategic Information System (SIS) is a Business Information System (BIS) with the characteristics Systematic approach to collecting, storing and retrieving data; Integration with other systems. It is imperative for your business to have a clear vision, business plan, strategy and organizational structure. It's important to align your people with these strategies so everyone has the same goals in mind.

Systems management is the process of planning, implementing, and monitoring information systems that support an organization's mission, goals, and objectives. They provide competitive intelligence, help you improve organizational structure, enable you to address competitive forces, and prepare you for environmental change. The characteristics of a strategic information system are:

  1. information security
  2. data integrity
  3. data security

This is the process of aligning your brand across the different channels you use. Each channel has its own audience, and as a brand owner, you need to know who your audience is and what they want. New markets are constantly emerging, creating new products and thus requiring a new and better competitive strategy to succeed.

Understand strategic information system

A strategic information system is mainly developed to respond to the corporate world and many business initiatives. Strategic information is used to gain competitive advantage and formulate business strategies of organizations. It can deliver a service or product that is offered at a lower price, differentiated and mainly focused on a demanding market segment or innovative. It helps companies to formulate business and competitive strategies, make managerial decisions and thus achieve competitive advantage and reduce costs.

Strategic Information System is a management system that helps set goals and organize activities for an organization. It allows you to organize the information and ideas about how your company works. In the 1990s, several companies were founded on the idea of ​​"strategic information systems," which is a fancy way of saying they use computers to collect data that will help them make better decisions. The Strategic Information System (SIS) is a database of information collected by the government for national defense and security purposes.

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Strategic information system is a system that provides the right information to the right people at the right time. Strategic information systems can be used by businesses, governments and individuals to make better decisions in an increasingly fast-paced world. Today, strategic information systems are widely used in business. The online application of this system is, for example, the ERP (Enterprise Resource Planning). It is important to have a Strategic Information System (SIS) for your business. SIS is a system that allows you to track and store information about your company's performance as well as the performance of individual employees.

A Strategic Information System (SIS) is a system that assists an organization in identifying, acquiring, maintaining, utilizing, and disposing of its data assets. SIS helps organizations assess their data needs and maintain records with minimal cost and maximum effectiveness. Strategic Information System (SIS) is a type of information system designed to meet the specific needs of an organization. A Strategic Information System (SIS) is a tool used by law enforcement agencies to collect, analyze, and share information across jurisdictions. The SIS can be a database for crime reports, arrest records, warrants and more.

Strategic information system is a way to measure the value of information. A strategic information system can be used to make strategic decisions by measuring the value of information. The processes that collect data, strategic information systems are often used by governments to facilitate decision making and execution. Just as businesses use strategic information systems, governments use such systems to make important decisions and respond effectively to them. The importance of the Strategic Information System (SIS) cannot be overstated.

Information systems strategy is an essential feature in the world of business and information technology (IT) and gives them better bargaining power. In short, it helps companies and businesses to allocate, store,process data, move the data and information they develop and receive. It also enables and offers various tools and services to help the companies apply metrics and analysis tools in their information stores. Information systems allow them to see the imaginative opportunities for expansion and simple ways to improve operational and delivery efficiencies. Thus, with better chain management, knowledge management,data management practicesalong with more effectiveData presentation and analysisprovide better customer service at a reduced or lower cost.

Strategic Information System | Competitive Advantage & Market Research (1)

(Video) Business Strategies: Market Advantages Provided by Information Systems

You may also want to watch an in-depth Strategic Information System video that we found useful:

Importance and advantages of the strategic information system

Strategic information system creates a link between organizational requirements and the latest information technology. This tactic helps an organization to conquer the market by using the information technology to meet their demanding demands of the constant changes in the business environment. Helps them develop their business strategy, helps with knowledge management andoperational management.

Information systems strategy is a critical aspect of an organization's management decision for its growth, expansion, and supply chain management. Information technology and competitive intelligence can do wonders for a business. The integration of the data system and its function within the organization can be easily managed by allowing the open access and use of management systems. In addition, it also enables the classification of different possible uses of information systems for different strategies. It gives the certainty that the applications are only allocated meaningful or underused resources and that the scarce resources are used sustainably and with a better impact factor. With the system information strategy, it ensures that the information system functions accordingly and supports the business objectives and goals of the organization at the different levels.

There are several instances of strategic planning that has helped the organizations to create and maintain the resources in this competitive market in recent years and has bestowed several effective benefits and just keep on ensuring the survival of those organizations using these systems have. These systems are often referred to as "strategic concepts of the organization.’ In order to provide companies with maximum financial performance in a volatile market, the correlation between strategic management and information systems is fundamental. understanding ofmanagement information systemis equally helpful and an asset to the organization.

In addition to reducing product-related costs, it also helps increase market share, streamline business processes, create a better business environment, diversify functional areas, and provide high-quality products and services.


Related:Data-Mining,data mapping,Cycle of information processing

Types of Information Systems Strategies

1. Operation support system:In an enterprise, data execution is performed on the user side, which is later processed to generate useful data products and services like reports, used by different users. Such a strategy is called Operation Support. The main purpose of this system is to control transactions, operations, control, supply chain and delivery management. It also helps facilitate internal and external conversations and product differentiation, and updates the organization's central master database. The operation support system is further divided into three systems:

  1. Transaction Processing System (TPS)
  2. process control system
  3. Enterprise-Collaboration-System

2. Management support system
Firms need accurate data in a specific format to understand organizations' decisions. The management support system strategy enables the effective decision making and task operation process, which is more manageable for the managers. They are basically divided into different strategies such as management, decision-making, accounting and expert information system.
These systems facilitate and provide the manager with precise information and data for simple routines and decision-making processes. Decision support system that helps solve specific issues related issues. Strategic planning, information technology, information management and data collection can support the process of data analysis.

Strategic Information System | Competitive Advantage & Market Research (2)

Applications of the strategic information system

  • Creating barriers to entry for a competitor:It involves a company using information systems to provide products and services that are difficult to duplicate or that are primarily used to support highly specialized business networks. This strategy stops competitors from entering the market as they find the cost of providing such services at a very high price.
  • Improving marketing by generating a database:The information system also gives the companies and organizations a competitive advantage by generating stronger databases, using big data and product differentiation to improve their sales and marketing tactics. It treats existing information as a useful resource. For example, a business firm can use its updated databases to monitor customer purchases and locate many segments of the market.Strategic Information System | Competitive Advantage & Market Research (3)
  • Block customers and suppliers.:It is an essential way to gain competitive advantage by making customers and suppliers permanent. Strategies are implemented in this information system to provide advantages to the customers and the suppliers so that they can change their minds and it becomes difficult for them to switch to the other competitor to continue providing the services.
  • Product cost reduction:It can help the companies to reduce their costs and enable them to offer products and services at a much lower cost than their competitors. Thus, such a strategy can enable the expansion and growth of the company.
  • Use of technology in the value chain:In this way, the organizations locate the particular activities in the company where competitive market strategies can be applied and where the strategic information systems can be more effective.

Related:data processing cycle,Importance of data processing,data visualization


(Video) Strategy and Competitive Advantage

A strategic alignment with a strategic information system is a critical part of any business. Information systems are a critical part of any large business or organization. It is imperative for the success of any large company that the information system is aligned with the business objective. The success of SISP also depends on how well a company responds to change. Adapting to changing business scenarios is a critical success factor.

Strategic alignment is the degree to which an organization's business strategy is implemented in its information system. This can be achieved by ensuring that the business strategy is aligned with the goals, objectives and themes outlined in the information system. This can be accomplished by evaluating how the information system contributes to the organization's strategic goals, resources, capabilities, and environment.

Read more on:Strategic Information Systems Planning (SISP) - An IS strategy for ERP implementation


Before creating a new system, the strategy for smooth business operation and service is very important. First, the company should determine its requirements and then work on themStrategic AnalysisAndSWOT-Analyse. The development of a new information system should correspond to the needs and requirements; be it at the level of executing transactions or at some levels of complex data and support information systems. The normalization of requirements, information management, goals and authorization of the information system should be done first. These systems include financial metrics that primarily focus on the short-term implications of the manager's decisions on issues such as revenue growth, market inflation, asset utilization, resource management and cash flow in the volatile marketplace. They reinforce the company's goals with non-financial measures that help with operational performance to increase the organization's future financial growth. System strategy development should mainly identify the project resources and constraints for each application area. The necessary planning should be flexible to accommodate the organization's priorities.

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  • What is information management?
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  • STEEP-Analyse,Strategic Analysis,SWOT-Analyse


How strategic information system is used for competitive advantage? ›

Information systems aid companies in competing with other competitors by maintaining low costs, differentiating products or services, focusing on market niche, strengthening ties with customers and suppliers, and increasing market entry high competition.

What is competitive advantage in information systems? ›

In information systems, competitive advantage refers to the use of information to get leverage in the market. Competitive advantage can be realized in terms of gaining strategic, tactical and operational advantages. * These three levels of competitive advantage will work together.

What are competitive strategies in information systems? ›

The five competitive strategies are: cost leadership, differentiation, innovation, growth, and alliance.

What are the three 3 strategies for competitive advantage? ›

The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them, lead to three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus.

What are the 4 competitive advantages? ›

The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.

What is an example of competitive advantage using information technology? ›

Automating Processes As A Competitive Advantage

Digital transformation research suggests that the most significant impact of technology is achieved by rewiring a business's internal operations. For instance, technology can automate all the back-office functions to make workflows better, faster and cheaper.

What are the five key competitive advantages? ›

Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service.

What do you mean by strategic information system? ›

Strategic information systems (SIS) are information systems that are developed in response to corporate business initiative. They are intended to give competitive advantage to the organization.

What are the six competitive advantages? ›

There are six items that are considered very important to competitive advantage. They are: location, selection, service, quality, price, speed, and turnaround. If a business can focus on these six areas and develop an advantage over their competitors, they will have a safety net to protect them if the market turns.

What are the 4 major competitive strategies? ›

Here are four types of competitive strategy and an example for each:
  • Cost leadership strategy. ...
  • Differentiation leadership strategy. ...
  • Cost focus strategy. ...
  • Differentiation focus strategy.
5 days ago

What are the three elements of information systems strategy? ›

The elements of an information system are customers, business processes, product services and communication technology.

What are the three main types of competitive strategies? ›


Michael Porter defines three strategy types that can attain a competitive advantage. These strategies are cost leadership, differentiation, and market segmentation (or focus).

What is an example of competitive advantage in strategic management? ›

For example, if a company advertises a product for a price that's lower than a similar product from a competitor, that company is likely to have a competitive advantage. The same is true if the advertised product costs more, but offers unique features that customers are willing to pay for.

What are the 2 types of competitive advantage? ›

There are two basic types of competitive advantage: cost leadership and differentiation.

What are four competitive strategies enabled by information systems that firms can pursue? ›

There are four generic strategies for dealing with competitive force enable by using IT: low-cost leadership, product differentiation, focus on market niche and strengthen customer and supplier intimacy.

What are the main roles of MIS solutions to develop and gain competitive advantage for organizations and business processes and functions at all levels? ›

The MIS helps in strategic planning, management control, operational control and transaction processing. The MIS helps in the clerical personal in the transaction processing and answers the queries on the data pertaining to the transaction, the status of a particular record and reference on a variety of documents.

What is strategic use of information technology? ›

What is the strategic use of IT? Strategic use of IT refers to how companies integrate and use technology to meet business goals. Information technology strategies support the use of technology by outlining various factors that can affect a company's use of and investment in computer hardware and software solutions.

What are the key defining components of a strategic information system? ›

Often, the typical SISP process engages the following five stages; (a) strategic business planning, (b) setting the information systems' mission and vision, (c) current information system assessment, (d) resource guidelines for the new information system, and (e) long-term strategic proposal.

What are the key features of strategic information system? ›

Characteristics of Strategic Management Information System (SMIS)
  • An organized occurrence. ...
  • Goal-oriented approach. ...
  • Involvement of top executives. ...
  • Multidisciplinary approach. ...
  • Prosperity in the long term. ...
  • Multidimensional technique. ...
  • Future-orientated. ...
  • Multi-functional or multi-business ramifications.
Jan 9, 2021

What are the advantages of SIS? ›

Student information system is a software that helps the institutes to store, maintain, process and compile student data, keep track of their regular activities, attendance and performance and offer required guidance and feedback to them. The software is highly robust and easy to use to all the faculty members.

Which strategy is the most effective to create competitive advantages? ›

Innovative Strategy.

People can gain a competitive edge as they discover and offer innovative ways of doing things for the company. If your ideas consistently result in benefits to the company you'll have that essential edge.

What are the 7 sources of sustainable competitive advantage? ›

Sustainable competitive advantages are typically difficult to create and not easy to replicate. There are eight main sources of sustainable competitive advantage, including Brand Loyalty, Location, Scale, Intellectual Property, Innovation, Proprietary Information, Network Effects, and Lock-up Supply.

What is effective competitive strategy? ›

Competitive Strategy Defined

An effective competitive strategy will help a firm develop, enhance and exploit one or more competitive advantages. A competitive advantage is a point of difference between a firm and its competitors that is valued by potential clients.

What are 8 ways to achieve competitive advantage? ›

  • Reduce costs. ...
  • Raise barriers to market entrants. ...
  • Establish high switching costs. ...
  • Create new products or services. ...
  • Differentiate products or services. ...
  • Enhance products or services. ...
  • Establish alliances. ...
  • Lock in suppliers or buyers.

What are the two key pillars of competitive advantage? ›

Michael Porter defined the two ways in which an organization can achieve competitive advantage over its rivals: cost advantage and differentiation advantage.

What are the 6 strategic objectives for using information system? ›

Specifically, business firms invest heavily in information to achieve six strategic business objectives:
  • Operational excellence.
  • New products, services, and business models.
  • Customer and supplier intimacy.
  • Improved decision making.
  • Competitive advantage.
  • Survival.

What are types of strategic information systems? ›

The analysis is based on the fact that the Strategic Information System (SIS) provides three types of strategic information (environmental information, competitive information and internal information).

What are the four 4 major categories of information systems? ›

What Are The Types Of Information Systems?
  • Knowledge Work System. ...
  • Management Information System. ...
  • Decision Support System. ...
  • Office Automation System. ...
  • Transaction Processing System. ...
  • Executive Support System.
Jul 14, 2022

What are the 4 business strategies? ›

Four generic business-level strategies emerge from these decisions: (1) broad cost leadership , (2) broad differentiation , (3) focused cost leadership , and (4) focused differentiation .

What are the three stages of strategic-management? ›

The strategic-management process consists of three stages: strategy formulation, strategy implementation, and strategy evaluation.

What are the 4 types of strategic business units? ›

The types of strategic business units can be categorized from the Boston Consulting Group (BCG) Matrix. These four types include question marks, stars, dogs, and cash cows.

What are examples of strategic advantages? ›

The following are common types of strategic advantage.
  • Talent. The talent of your people including at the governance and executive management level.
  • Processes. ...
  • Capabilities. ...
  • Organizational Culture. ...
  • Brand. ...
  • Business Model. ...
  • Costs. ...
  • Capital.
Jun 2, 2018

What are the three types of competitive advantage give examples of each? ›

There are three generic types of competitive advantage that Michael Porter set out in his book, “Competitive Advantage: Creating and Sustaining Superior Performance.” They are Cost Leadership, Differentiation Leadership, and Focus, which is divided into cost and differentiation focus.

How supply chain information systems can provide a competitive advantage? ›

Supply chain analytics solutions can bring real-time data from every part of the business, from POS terminals to the mines from which raw materials are extracted. Companies can analyze large volumes of contextual data for accurate forecasting and shift plans according to rapidly changing market demands.

How data information and knowledge can contribute to organizational competitive advantage? ›

How can data, information, and knowledge contribute to organizational competitive advantage? Data - Data can help businesses get a competitive advantage by allowing them to gain a deeper understanding of their customers and improve the designs and implementation of marketing campaigns.

How are information systems contributing in adding competitive advantage in 21st century organizations? ›

Companies can use ICT to provide products & services of the highest quality at affordable prices and top-rated customer service, and help the companies to enter new markets through e-commerce. Globalization, collaboration, and integration have become the new drivers in this competitive arena.

What is the role of information system in competitive business environment? ›

Information systems is a set of interrelated components used to gather, filter, process, store and distribute useful data to help in operations, control and decision making in an organization. It also help management team in learning and solving problems, visualizing and creating new products.

What are the 6 factors of competitive advantage? ›

Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service.

What are the four competitive strategies enabled by information systems that firms can pursue? ›

There are four generic strategies for dealing with competitive force enable by using IT: low-cost leadership, product differentiation, focus on market niche and strengthen customer and supplier intimacy.

What are the strategic advantages of strategic supply chain management? ›

Important benefits of supply chain management
  • Better collaboration with suppliers.
  • Better quality control.
  • Shipping optimisation.
  • Reduced inventory and overhead costs.
  • Improved risk mitigation.
  • Stronger cash flow.
  • A more agile business.
  • Better visibility and data analytics.
Jan 26, 2022

Why is competitive information important? ›

The purpose of a competitor analysis is to understand your competitors' strengths and weaknesses in comparison to your own and to find a gap in the market. A competitor analysis is important because: It will help you recognise how you can enhance your own business strategy.

Does the human resources information system have impact on the organization's competitive advantage? ›

The literature concerning the relationship between HRIS features and gaining a competitive advantage claims that an effective HRIS helps organizations to gain a sustained competitive advantages through decreasing costs and wastes (Gurol et al.

What are the strategic advantages of information systems? ›

Strategic information system provides a connection between demands of organization and latest information technology. This tactic helps an organization to get hold of the market by utilizing Information tech to meet its challenging requirements to the continuous variation in the corporate environment.

What are 3 benefits from using an information system? ›

Other advantages of information systems

cost reductions. supply of information to decision-makers. better customer service. continuous availability of the systems.

How do information systems improve relationships between businesses and customers? ›

Provides more customer data

A management information system will reveal additional information about the customers and with this useful information about the customer needs, the management is better positioned to improve customer service and deliver highly effective and promotional and marketing campaigns.

What is the role of information system in business growth? ›

Information systems help you to communicate with your customers effectively, generate new income streams for your business, make better decisions, promote your products more efficiently and manage your business effectively.

What are the four roles of information system in business? ›

Decision making, operational management, customer interaction, collaboration on teams, strategic initiatives, and individual productivity are the six major roles of information systems in an organization (Wallace, 2015).

What are the five roles of information system? ›

Our exploration goes further and proposes five roles that an information system may be allowed to take in an organization: Bureaucrat, Manipulator, Administrator, Consultant and Dismissed.


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