In the business world, enterprise resource planning (ERP) helps to integrate and manage all parts of the firm for a common goal. An ERP information system incorporates areas such as purchasing, inventories, marketing, human resources, and planning (Alamri et al., 2016). Today, a good number of companies are reaping from Strategic Information System Planning (SISP). For instance, those companies who have implemented SISP are at an advantage in a highly competitive business environment. The primary intention of applying SISP in business is to identify a selection of computer-based applications which will help an organization to execute their plans and attain their goals with minimal defaults (Sidi, 2015). Therefore they are so many reasons why an organization should implement SISP in their strategies especially for them to retain their position and command in a transforming business world. Purposes of SISP includes:
Gaining competitive advantage
The economy today keeps encouraging the entrance of new companies in the business sector. Though this has an advantage mainly to consumers, it might act against those firm who were already operating in the industry. However, to adapt to the new environment, every business has to review their strategies now and then to incorporate new technology and encourage innovation. Mostly, firms with a competitive advantage over others benefit from access to unique resources, which results to higher stock market valuation than their competitors. Among the resources making this difference is the efficient utilization of information technology especially the SISP. SISP applications guide businesses on how to organize their information system infrastructures over time. At times a company may find it rough to launch a particular project. However, with SISP this is not difficult as it provides valuable information and guidelines on scheduling, funds, and personnel (Xu & Quaddus, 2013). For a company to retain its influence in the market, SISP can assist it in the formulation of new and perfect ways of creating barriers against new firms. Some of this plans include striking a balance between the powers of the suppliers and producing new products using more cost-effective methods that act at a disadvantage to competitors.
Other areas where SISP supports for a company to take control of the market are delivering of goods and services at a lower cost. However, this does not necessary mean selling at the lowest cost in the market but a price related to the quality of the product and service which will attract consumers and yield sufficient returns on investments. When it comes to cost SISP will help in analyzing overall expenses of corporate activities incurred in delivering the product or service. Moreover, in a market where the product is similar resulting in lower sales SISP is in a position to direct a business on features to change to differentiate their products from the rest. For new entrepreneurs and also existing businesses SISP will help them to identify in the market segment.
Integrating information system operators and professionals
The SISP brings the information system users and the professionals together and forms a mutual relationship to determine the value of the system and any problem associated with it. SISP helps an organization to develop priorities for the information system development by ranking a system by strategic principles, efficiency, and effectiveness. Such actions are for the benefit of the users as they can easily access the impact the surrounding has to their business. With this kind of relationship between developers and operators, as a worker, one will easily tell the outcomes of his or her actions in advance minimizing risks and losses.
Developing technology aligned with strategies of an organization
Since SISP is in a position to analyze the surrounding environment either from a political or economic dimension it offers relevant views on the best option a firm may take to remain productive. For instance, where a given strategy is prone to fail, the SISP will ensure parallel strategies are formulated to overcome the possibility of fail. The best and most productive plan is then selected for implementation. SISP provides that technology activities are perfectly affiliated with organizations growing requirements and their overall objectives.
Plans strategy application and action plan
After identifying the most suitable strategy to implement, a business may develop problems during the application. However, with SISP a more comprehensive strategy implementation process is among the priorities where in the case of any default the action to rectify the situation is immediately conveyed. With this kind of system, business reduces downtime and excessive costs which could have been incurred to retain the operations of the company.
Automation of business activities
Computerizing of strategic information systems enables a company to have a continuous production with minimal breakdowns. Mainly, the company uses proactive means of production where every process is monitored at ease. The result is high-quality services and goods free from defaults. Due to the use of information technology, SISP enables organizations to store, process and transfer helpful information in a more secure manner. Other importance of SISP is providing a platform for application of metric and analytical tools in information sources, identifies opportunities for growth and improves the overall operation of any organization.
Strategic Information System Planning (SISP) Issues
Problems with methodologies
Since 1990s SISP itself is a major issue in the information system management. In SISP they are various stages involved, and in case one of them is not properly implemented that could cause problems within the organization. One of the crucial issues is selecting the right methodology to enable the information system team to plan its SISP activities. Methodology entails the guideline for solving a particular problem within the organization. SISP methodology is an abstract system design used to transform organizational inputs into an actual information system strategic plan which is the output. Therefore, to help in management plans those involved have to decide the most productive technique combinations to implement which is time-consuming and involving.
Negative influence among the involved parties
Also, SISP comprises of some crucial information from data architecture planning, senior management leadership, and cost justification among others areas, which demands examination (Mckee, 2013). In case, a problem is detected planning can delay affecting the outcomes of SISP. As a planner, one should examine all practices as well as both dependent and independent variables. Where the influence of any of them is in excess or insufficient, the SISP objectives are negatively affected (Tavana, 2012). Employees can also act against the implementation of SISP and this call for a keen observer to ensure that everyone is complying with the procedures.
Lack of commitment from top managers
On the other hand, difficulties in securing top management commitment to supervise the implementation of a given plan will require a substantive analysis. In most cases, SISP produces satisfactory plans, but the organizations lack managers committed to controlling and supervise the entire operation. Where such failures prevail, the results are negative, and this impedes the SISP activities.
Initial installation of SISP is expensive. In some organizations, the process may take time before raising enough capital to see the SISP running. If a stage of SISP is skipped due to lack of resources, the outcome suffers from defects and therefore the system is not reliable. In specific software are quite expensive, and hardware plan requires specialists, which may strain an organization financially (Zijad, 2015). The overall implementation cost limits the use of SISP in most companies. Lastly, too much user involvement, the rigidity of planning procedure and lack of database development among other issues also impacts and are some of the major issues affecting the application of SISP.
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Alamri, S., Ballahmar, H., Zafar, A. and Almutiri, N. (2016). Strategic Information System Planning: A Case Study of a Service Delivery Company. [Online] International Advanced Research Journal of Science, Engineering, and Technology. Available at: http://www.iarjset.com/upload/2016/may-16/IARJSET%2018.pdf
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Mckee, J. (2013). Applying principles from IT architecture to strategic business planning.Hershey, Pa, Business Science Reference. Bottom of Form
Sidi, Z. (2015). Strategic Information System Planning (Concepts & Issues in the New Millennium). [Online] Available at: http://zulsidi.tripod.com/pdf/sisp.pdf [Accessed 30 Dec. 2016].
Tavana, M. (2012). Decision-making theories and practices from analysis to strategy. Hershey, PA, Business Science Reference.
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Xu, J., & Quaddus, M. A. (2013). Managing information systems: ten essential topics.Amsterdam, Atlantis Press.
Zijad, P. (2015). Major Issues in SISP: Insight into the Main Reason of SISP Failure. [Online] Available at: https://pdfs.semanticscholar.org/651a/1e8b3e3413ee86902789d15e5748b9c1080f.pdf.
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