MANAGEMENT

INFORMATION SYSTEM
Chapter 2

Dr. Nilima Patil

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Content
 Competitive strategy concepts
 The value chain and strategic
 Using information technology for strategic
advantage

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Competitive strategy
concepts
 Strategic information system planning (sisp) is one of the important management trouble.
The usage of information era related to proper making plans might growth commercial
enterprise fulfillment in the agency. Sisp is taken into consideration to be the pleasant
mechanism that might guide the employer to assure that it activities are attuned with those
of the rest of the organizational needs.
 Because the eighties, strategic information systems planning (sisp) has been identified for
its contribution to agencies and has grow to be a totally hard difficulty for scientists and
practitioners in the recent years. Sisp is important to assist corporations reach nowadays‟s
exceedingly aggressive worldwide marketplace. Severa studies were executed at the
strategic statistics systems planning (sisp) to assist in making the implementation and
effectiveness easier and more worthwhile.
 Measuring the effectiveness of making plans system success is a theoretical venture
throughout many fields of organizational studies. Many research have been performed to
guide fulfillment to organizations using sisp, but the venture even after two a long time
nevertheless is gift. Early sisp researchers hired single measurement measures of sisp
fulfillment. Extra currently multidimensional, multi-object measures of sisp fulfillment were
proposed. The manner sisp approach is used, the sisp objectives of agencies and key
dimensions of the sisp context relate together with sisp success. Important success
elements want to be implemented correctly to reach quality effects. Accomplishing the
targets of sisp system will manual the organization to accomplish competitiveness.
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Cause of strategic statistics
device planning
 The strategic data structures making plans technique is supposed to make sure
that technology sports are properly aligned with the developing needs and
techniques of the business enterprise.
 The objectives of strategic records systems planning are huge and cover all
aspects vital to clean the going for walks of Corporations. Those objectives
consists of: aligning it with the enterprise, gaining aggressive advantage,
figuring out new and better payback programs, increasing pinnacle control
commitment, improving communication with users, forecasting it aid
necessities, allocating it sources, developing records structure and growing
visibility of it.
 The significance of strategic facts structures making plans has expanded
because of the recognition of is in today‟s companies collectively with the
multiplied strain to manipulate it property. Also because corporations look to
acquire the maximum gain from their resources and decrease hazard as a
whole lot as possible. Importance of sisp arises to provide a strategic plan that
addresses the destiny desires for it/is assets in accordance with the commercial
enterprise objectives.

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Crucial achievement elements
in sisp
 The have an effect on of is making plans on sisp fulfillment has been investigated via a few
fashionable listing of organizational traits, such as the want to conduct comprehensive
planning in an volatile surroundings, the external it and commercial enterprise
surroundings, environmental evaluation, or the impact of the role of is within the business
enterprise.
 Sisp fulfillment or effectiveness desires to be measured dimensionally because of its
complexity . Most of the beyond research on sisp achievement considered two measures of
achievement: “aim-focused judgment”, which seeks to assess the diploma of attainment in
relation to targets, and “development judgment”, which seeks to assess hoe the making
plans machine stepped forward extra time in helping organizational planning wishes.
Rationalized that those angle constitute the „cease‟, (the output of the making plans
device) and „approach‟ (adaptability of the manner), view for comparing sisp blessings.
 In some other phrases, identified dimensions of sisp fulfillment achievement of is making
plans systems and is making plans structures capability.
 Meanwhile conceptualized sisp fulfillment in phrases of 4 interrelated dimensions which
can be; alignment, evaluation, cooperation and capability. The first 3 constructs represent
„desires‟ for sisp while the remaining assemble represents „improvement‟ in sisp over time.
Maximum of the current researches on sisp success are associated with the affect of
environmental factors, managerial elements and organizational elements.

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Sisp process

 Sisp has been described in phrases of phases and the specific sports within them. The
stages and activities constitute the components of the planning procedure, every having its
very own objectives, individuals, preconditions, merchandise, and strategies.
 Strategic attention involves the organizing and starting up of the planning method in an
prepared manner with sufficient top management support. Scenario evaluation is the
studying of the internal and external environments in which the deliberate statistics
structures could be expected to make a contribution. Strategy concept is the imaging of
numerous feasible statistics structures that might be applied. Method components is the
deciding on and prioritizing of the particular facts structures so that it will be applied.
Method implementation making plans is the making plans of the sports important to make
certain that the brand new facts structures are definitely positioned into production and
used.
 They could shape the premise for the evaluation of sisp each because they replicate
particular moves and because they constitute the entire range of the making plans effort.
Another look at defined sisp in phrases of procedure dimensions which include
comprehensiveness, formalization, consciousness, go with the flow, participation, and
consistency. The ones dimensions are useful in characterizing the interest of strategic
making plans.

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Sisp techniques
 Some of the famous planning techniques
are :
 Levels of increase
 Vital success elements
 Competitive forces version
 Cost chain evaluation
 Scenario making plans
 Swot

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methodologies
 Business system Planning (bsp)
 Critical success Factor analysis (csf)
 Information Engineering (ie)
 Value Chain Analysis
 Method/1
 Strategic Systems
 Planning (ssp) Pro planner

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Strategic information systems:
use of information technology in
a learning organization
 Current studies endorse we need to enlarge the variety of underlying metaphorical frameworks which we
use to talk how the organisation is associated its environment. Each framework highlights and hides
different elements of this courting, for this reason focuses and limits our views of the organisation, the
competitive surroundings and the usage of it by way of the agency. The paper examines the idea of the
getting to know enterprise as a manner to knowledge the function of records generation (it) in employer
approach.
 The idea of the mastering employer and using it to facilitate chronic getting to know transforms how we
think about competition.


 The use of the idea of the mastering organization, the function of opposition is much less an antagonistic,
combative change and extra a way of mastering. Competition allows learning through market comments
on product popularity and the overall performance of 1's personal company as compared with other
corporations. Strategic it applications are the ones which might be instrumental in this and different
organizational learning approaches. This paper suggests the usage of a hierarchical shape to classify
programs of information technology using a hierarchical structure. It packages can be considered as
evolving closer to "higher" applications through the years, with effective information systems at
successively higher ranges being enabled by applications on the decrease tiers. The higher stage
applications are the ones which allow strategic mastering, yet systems that have been diagnosed in the
past as strategic often might be classified at the decrease degrees on this hierarchy. The paper shows an
approach and shape for reading strategic packages of it in studying agencies.

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Contd..
 The remainder of the paper is prepared in four predominant sections
and a short summary. The primary section evaluations past
discussions about distinctive metaphorical frameworks for thinking
about strategy and strategic data systems in the nineteen nineties. It
outlines the concept of an adaptive, leaming corporation and
compares this with the greater generic war metaphor in terms of views
of aggressive ness and measures of fulfillment. The next segment
critiques latest paintings at the idea of the learning enterprise, defines
strategic getting to know, and indicates that getting to know may be a
strategic necessity for plenty companies. The 1/3 phase combines
those principles with a hierarchy of information generation packages.
The fourth section examines the implications of this -dimensional
framework for thinking about strategic uses of data technology.

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Organizational mastering

 Huber (1991) summarized and critiqued the literature on organizational

learning and articulated 4 constructs which might be related to
organizational getting to know: know-how acquisition, information
distribution, facts interpretation, and organizational reminiscence. Each
of these 4 constructs has its own literature and Huber notes that a
whole lot opportunity exists for systematic investigations which
integrate those relatively disparate bodies of take a look at. Such
integration, while beyond the scope of the cutting-edge paper, might
be initiated by means of thinking about the implications of these
constructs at the opportunities for strategic applications of it.
 The subsequent paragraphs look at the nature of studying, take a look
at its relationship to method, and review the position of information
generation in the four constructs related to gaining knowledge of. We
upload a hierarchical dimension to our consideration of facts and
knowledge. Collectively, those offer a conceptual shape for thinking
about strategic programs of it.
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The nature of gaining
knowledge
 Huber points out that the literature does not require that gaining knowledge of bring about
observable changes in conduct. Friedland (1983) notes that getting to know entails the
organism becoming aware about differences and alternatives and making choices. The end
result of studying can be a revision of information (e.g..A amendment of a cognitive map)
rather than an instantaneous behavioral trade. Revised know-how can be the idea for
specific choices, for that reason ensuing in later changes in conduct; the fundamental
change is in cognition, now not in determined movements. Consequently, Huber defames
getting to know as a method which adjustments the scope of capacity behavior. In his
phrases, an entity learns yf, through its processing of importation, the variety of its ability
behaviors is modified" (Huber, 1991, p. 89 [emphasis added]). On this definition, facts
processing is fundamental to the learning process. While the expectation is that the range
of behavior may be wider, information processing might reduce the range. As an example,
the business enterprise, thru learning, might be able to establish extra correctly the hazard
of a potential assignment and as a consequence decide in opposition to a specific motion.
 Huber in addition assumes that an organisation learns if any of its devices acquire
understanding that it acknowledges as probably beneficial. Which means an enterprise
leams if best one in every of its units learns some thing.

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Contd..
 Huber proposes four dimensions that may be used to degree organizational mastering: life
(defined above in the 4 constructs), breadth, elaborateness, and thoroughness. He asserts
that organizational leaming takes place when both of those measures boom. As an
instance, greater organizational getting to know occurs when extra organizational units
broaden uniform comprehensions of numerous interpretations. Those dimensions have
implications for each approach and statistics enterprise, as mentioned underneath.
 Getting to know, organizing, and approachstudying is not imposed on the enterprise from
the outdoor. It's miles completed by the business enterprise itself, though it need not be
conscious or intentional. It arises from the agency's interacting with its surroundings (the
supply of statistics, assuming an open gadget), and it's far performed through records
processing.
 On this context, organizational gaining knowledge of is intently allied with the concept of
organizing as a social process of sense making, the technique by which an corporation
learns about and reacts to its surroundings. As defined by weick (1979) and later by way of
ansoff (1987) and mintzberg and waters (1985). An business enterprise makes feel of its
surroundings via a complex social process of interacting with its stakeholders, and this feel-
making hobby is the manner both of "organizing" and "enacting approach."

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An information hierarchy and
learning
 The knowledge of how daily be instrumental in enhancing an organization's functionality
for strategic getting dayeveryday every day replicate the numerous interrelationships
amongst huber's four constructs. As an instance, employer-vital facts from the environment
will now not be saved in reminiscence if it is not received inside the first location. It's going
to not be acquired except there is a few frame of reference that gives the information
importance; the corporation daily apprehend that the records has that means. This requires
some preliminary interpretation, every day on a few saved set of criteria, that allows those
with access everyday the statistics (or folks that first have an possibility every day
accumulate the data) day-to-day apprehend the capacity price of the facts, this
understanding a system of interrelationships a number of the processes that provide for the
waft of control along side the waft of records itself. There shouldeveryday be a few method
of differentiating among "noise" and "sudden variety which conveys statistics," as referred
dayeveryday with the aid of migliarese (1985).
 Huber (1991) uses information and records interchangeably, acknowledging in a footnote
@. 89) that he tries to use information to refer to information that supply that means by
lowering uncertainty, ambiguity, or equivocality and understanding to refer to greater
complex products of studying, including interpretations of facts
("bdd5b54adb3c84011c7516ef3ab47e54"). This remedy of information and information is
insufficient for growing the linkages among possible strategic programs of it in the studying
agency; a difference and expansion of those thoughts is possible through adding the idea
of a hierarchy of facts processing.
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Contd..
 Mason (1992) advised that powerful sensible businesses require a few type of better order know-
knowknowledge constructing and daily abilities than presently is available everyday. He understanding a
revision in our vocabulary to reflect the opportunities for it applications at these better ranges, reflecting
the evolution of it applications through the years. In the early days of lapdayeveryday structures,
applications have been taken into consideration information processing programs; these days they may be
taken into consideration statistics processing. More appropriate terms for a few superior packages is
probably "information processing" and "information organizing" systems, reflecting the stages of
information organisation which such structures can also allow. Without such abilities, agencies can be
"mentally poor" in some methods despite the fact that they'll have great understanding.
 Nonaka (1991) describes some groups as "know-knowknowledge creating" companies. Through powerful
methods for growing information, such organizations are capable of expand modern merchandise and set
up marketplace benefits. This paper takes the location that every onebusinesses are expertise developing
agencies. Some perform the expertise introduction hobby more efficiently than others, and some effective
businesses use their expertise growing abilities day-to-day develop revolutionary merchandise. Expertise
can be produced via the exercises of everyday transactions and particularly by taking pictures the
exceptions to these workouts. The 66b34c3da3a0593bd135e66036f9aef3 transactions produce data
which can be used day-to-day confii or query the tacit, models-in-use standards which mirror the
organization's illustration of the sector and manual its decision- and feel-making methods. In this
experience, the organisation which maximum efficiently learns from its stories and interactions with its
environment is the one we would assume everyday have a competitive advantage.

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Levels of information and
knowledge
Utility/ability Requirements
Level Type What is included

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Knowledge acquisition

 Knowledge acquisitionis the system with the aid of which an organization obtains knowledge. As huber
notes, this technique may involve what the person units of an organisation already realize ("congenital"
getting upupdated), revel in and designed experiments, self-value determinations, and acquisition of
devices (hiring new personnel or obtaining an current organization).
 It's far sizable that huber makes use of the time period "understanding acquisition." merely obtaining data
is inadequate for mastering; the employer's range of capability conduct isn't always greater with out further
processing of this facts. Knowledge acquisition can take vicinity in two approaches: knowledge may be
brought updated the agency via shifting know-how inupdated the company (horizontal motion of
information), or the corporation can acquire understanding with the aid of processing decrease ranges of
information in methods that make contributions updated the increase of higher levels within the hierarchy.
This leads us up-to-date the subsequent proposition:


 Corporations that may manipulate facts, even upupdated additional irgformation, do not necessarily have
the capabiliry up-to-date examine. Sports updated expertise advent (stage four) or better are involved in
up to date knowupdated. Processing at the decrease stages (underneath level 4) is a essential but
insufficient situation for mastering.

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Contd..
 In other words, up-to-date does no longer occur truly up to dateupdated extra facts and facts, and nor is
studying constrained up-to-date the importation of understanding from outdoor the organisation. Up to date
is also possible from the rearranging of know-how, the revision of previous know-how systems, and the
building and revisions of theories. An agency learns through understanding acquisition, however it could
also learn from a restructuring of its know-how base and the,processing of its information inupdated
information and better types of the information-understanding pyramid. This type of up-to-date is up-to-
date leaming via huber's interpretation construct, as discussed beneath.
 Strategic applications of it for obtaining expertise consequently can take paperwork: capabilities for
assimilating understanding from out of doors, and abilities for growing new information via reinterpretation
and reformulation of consolidation of existing and newly-received facts.
 An instance of a capability of the first kind is the ability up-to-date collect and merge systems up-to-date
guarantee the assimilation of an obtained company's information base. In a single mnt case, the is
corporation of a huge bank is developing it capabilities updated control the mixing activities required
through their acquisition approach. "we intend up-to-date have a bonus up to datewhen it comes
upupdated merging the operations of our obtained banks," up to datep of the is feature stated.
 Different packages of it offer strategic gain by using substantially improving the organization's capabilities
for obtaining expertise via scanning the environment (a traditional venture of strategic making plans) ana
enabling managers updated be aware what's critical in these environmental sensing activities (e.g.. See
starbuck and milliken, 1988). As cited below, this up to date overlaps extremely the process of data
interpretation; a few environmental facts in no way gets via the organizational "filters." the development of
shrewd, adaptive filters and an automated "alerting mechanism" might be an possibility for a strategic
application of it. (see additionally the discussion of organizational memory and data interpretation,
beneath;

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Facts distribution

 Information distribution is the technique by which an employer up-to-date data among its devices, thereby
producing new knowledge or understanding. Good sized research on statistics distribution has been
conducted (huber terms up-to-date "mature"), but there is a lack of have a look at on how corporations can
extra correctly guarantee that applicable facts is shared through faraway gadgets. The trouble, as up-to-
date by means of huber. Is that a few units may need statistics however no longer recognise they want it
nor recognize that it's far up to date be had some other place in the agency. An intelligent records machine
(e.g., paradice, 1988) that might recognize the want
 For information and be up-to-date up to date it although it have been in any other organizational unit could
certainly be a strategic application of it.
 Some other course for the development of strategic packages of it is through using "expertise processors"
and "know-how networks" which allow the change of know-how among human beings (or different
intelligent retailers). A few work is being carried out in this am via dec (smart, 1991; rogers, 1992), but
there's no extensively commonplace widespread even though which organizations can alternate
information.
 Acquiring and distributing better tiers of information and knowledge presently might appear updated
require new conceptual models for supdatedring organized facts. This place could benefit from research
which joins library and records scientists with control records researchers. Conceptual models up-to-date
on an expertise of how knowledge hisupupdated has been codified and indexed, coupled with more recent
principles of hypertext linkages and object-orientated databases, may provide new perception inupdated
what sort of it utility might permit agencies up to date examine. What might be useful could be systems
which preserve 3177227fc5dac36e3e5ae6cd5820dcaa indexes of the information base. Newly acquired
understanding and information might be connected logically up to date present information, up-to-date as a
library assigns name numbers up-to-date books, accordingly allowing related up to datesubjects up-to-date
be located easily. Up-to-date consider linkages in order that newly evolved knowledge is mechanically
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routed updated 13, practical organizational
MIS devices.
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Organizational reminiscence
and information interpretation
 Organizational memory is the name given up to date the manner via which understanding is up to
datesupupdated for destiny use. One hassle is up-to-date the issue of deciding which records is suitable
for storage (the acquisition issue). This requires that some interpretation be attached as records from the
environment is scanned. As up to dateupdated via argyris and schon (1974) and argyris (1990). Agencies
often set up protecting mechanisms which filter data which might stimulate exchange, so one assignment
is up-to-date find approaches up-to-date examine what's being filtered out this is relevant up-to-date the
company.
 Current data structures can keep hard statistics and records pretty effectively, however managers depend
not simplest on those sorts of records however additionally on so-referred upupdated "tender" facts which
up-to-date be up-to-date and retrieved, often in non-up-to-date-based upupdated systems. Huber (1990)
outlines some crucial research questions which up-to-date be addressed on organizational use of up-to-
date-up-to-date smooth facts. What is needed are progressed methods up to date codify, shop, and allow
up-to-date up-to-date such information. One up to dater of the hassle is that sup to datering information
with out meaning soon yields an unwieldy mass of data. Sup to datering meaningful records reduces the
scope of the trouble. Interpretation is required.
 Statistics interpretation, as described with the aid of huber, is the system by way of which distributed
information is given one or more usually undersupdatedod meanings. Weick (1979) and others might
argue that there is no normally undersup to dateod that means without a social interplay up to date offer
the statistics context and consequently which means, and it is in this region that there up-to-date big
possibilities for strategic packages of it. As huber notes, it is properly-mounted that individuals and
organizations have previous notion systems which shape their interpretation of statistics and consequently
the formation of meaning. If the truth of observations is socially constructed (weick, 1979; ansoff, 1987;
mintzberg and waters, 1985), then earlier perception structures mediate or maybe egect the development
of that means in a set. This shows that the sharing of prior perception structures by means of stakeholders
may be useful
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Dr. Nilima It is in this
assemble that the maximum big strategic applications of up-to-date emerge. Programs which permit
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Contd..
 Current studies is investigating the sharing of cognitive maps among interdependent decision-makers in an
organization, increasing the richness of conversation (daft and lengel, 1984) considerably over traditional
up-to-date verbal exchange (te'eni, schwartz, and boland, 1992). The interplay between up to date models
(i.e., the memory construct) and interpretation is important updated know-how how organizations may
additionally research. Senge (1990b) explores the function of discussion in crew studying, noting the need
for individuals accomplishing communicate updated "suspend assumptions." harri-augstein and thomas
(1991), building on kelly's idea of "learning experiments" which challenge or confii non-public constructs
(kelly, 1963), broaden the idea of leaming conversations. Each senge and harri-augstein and thomas
make use of the ideas of a hierarchy of knowledge and comments from interactions with the surroundings
as key principles. Which means is attributed up to date facts and statistics; that means and importance get
up from an interactive procedure of checking out records upupdated prior fashions and contemporary
statistics. As they word, mastering in speak comes not only with the aid of the transfer of know-how from
the alternative celebration, it also comes from one's changing one's very own previous constructs with the
aid of reexamining them. As tanner (1990) has noted, talk can be up-to-date for plenty reasons. Possible
imagine structures which facilitate multicultural exchanges via showing contextual facts analogous up to
date cognitive maps.
 This "embedded" expertise (badaracco, 1991) can rework the corporation by presenting information than
cannot be captured and moved, as in books or technical artifacts. Ultimately, as in the up to date
knowupdated from talk, the embedded information up-to-date instrumental in organizational renewal. As
one supervisor in a joint undertaking positioned it, when asked about what have been found out, "we found
out so much. Now not just the generation from the [japanese partner], however we re-tested our very own
ways of doing things." this indicates every other proposition:

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