Answer:
A Strategic Information System (SIS) 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 changes and aid it in achieving a competitive advantage.
Key features of the Strategic Information Systems are the following:
- Decision support systems that enable to develop a strategic approach to align Information Systems (IS) or Information Technologies (IT) with an organization’s business strategies.
- Primarily Enterprise resource planning solutions that integrate/link the business processes to meet the enterprise objectives for the optimization of the enterprise resources.
- Database systems with the “data mining” capabilities to make the best use of available corporate information for marketing, production, promotion and innovation. The SIS systems also facilitate identification of the data collection strategies to help optimize database marketing opportunities.
- The real-time information Systems that intend to maintain a rapid-response and the quality indicators.
The Strategic Information Systems (SIS) can give a business a competitive advantage. Strategic position is recognized by observing competitive indicators. A business with good competitive indicators is usually in a good competitive position.
- Information Systems can be Strategic (SIS) if they:
- Support the competitive strategy of the firm.
- Change the way a firm competes.
- Change industry structure.
- SIS can provide a competitive advantage.
Characteristics of SIS
Some characteristics of successful SIS are:
- They are innovative, unique, original in some way.
- They are not easily copied (combine IT leverage with organizational resources).
- They are developed through some pre-existing resources of the organization.
For example, special skills of the employees, or protected market segment (patents), brand name (reputation), product scope, etc.
- The SIS system is supported by top management.
- Strategic partnerships. (R and D is expensive, standardization requires cooperation, reduce technical risks and training, allow global access, etc.)
- Can be analyzed by strategic frameworks.
