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Strategic Planning of IS/IT: View on Strategic Resources

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Introduction

Strategic Planning of IS/IT: View on Strategic Resources This paper will discuss the relevance of strategic resource and information management in the context of strategic planning of information system and information technology. It will pay attention on the concept of core competences particularly and distinctive capabilities. Moreover, the difficulties will be revealed when the above concepts are introduced into an organisation's IM strategy. Introduction In the 80's and 90's, information has emerged as an agent of integration and the enabler of new competitiveness for today's enterprise in the global marketplace. It has been a growing realization of the need to make information systems strategically important. Consequently, strategic planning of information system and information technology (IS/IT) has been identified as the crucial issue of information management. Planning for information systems, as for any other system, begins with identification of needs. In order to be effective, development of any IS should be a response to need. Under the circumstance of today's competition, such planning for IS/IT is required to be long term oriented and serve as the framework for determining the product/market combination of a corporation, and therefore, becoming strategic. In the formulation of such a strategy, many approaches are introduced. In this paper, resource-based approach, the perspective one that emphasizes on content (on the other hand, descriptive is where process is prime), is going to be discussed. The plan for this paper is fourfold: first, to describe a proper definition of strategic planning of IS/IT and set it as the context of this paper; second, to review the resource-based perspective; third, to discuss the difficulties when this approach is introduced into information management and to offer some advice to tackle these problems, and finally, to draw a conclusion. ...read more.

Middle

However, the difference of core competences and distinctive capabilities will not distract their significance that represents strategically relevant resources; they are both the 'strategic resources'. Further, a term, 'architecture', introduced by Kay, is used to combine them. It is 'a system of relationship within the firm or between the firm and its supplier and customers, or both' (1993: 14). To create a distinctive architecture requires a number of core competences relating to task such as the selection of the most suitable suppliers, the fostering of relationships outside the organisations, the creation of an appropriate of culture, and an ability to response to change. Strategic Resources and IM The strategic value of an organisation's resources can be conceived only through the activities that they contribute to support or realize like the information management and SISP. By those strategic resources, as mentioned above, an organisation may deploy in the process of converting inputs into outputs strategically, which can be reflected in the every aspect of SISP and Information Management as they are simply seen as Input-Process-Output functions (Figure 2). The information management is aimed at 'to add value by exploiting information as a core business resource' (Ward and Griffiths 1996, 363) and therefore, it should to be based on core competences of an organisation. Analogously, IM needs to determine how they support, complement, enhance, or, as increasingly the case, create or potentially transform - 're-engineer'-the organisation's core competences. IM's core competences, once developed, will probably put an enhanced focus on the way in which core competences of the organisation can be re-engineered, which in turn will refine the understanding of IM's role. ...read more.

Conclusion

C. and Sifonis, J (1988) 'The Value of Strategic IS Planning: Understanding Consistency, Validity and IS Markets', MIS Quarterly, June, 187-200 Hitt, M.A. and Ireland, R.R. (1985) 'Corporate Distinctive Competence: Strategy, Industry and Performance', Strategic Management Journa, 6, 273-293 Hoffer J.A., Michaele S.J. and Carroll J.J. (1989) 'The Pitfalls of Strategic Data and Systems Planning: A Research Agenda', In Proceedings of the twenty-second annual Hawaijii International Conference on Systems Sciences, IV Kay J. (1993) Foundations of Corporate Success, Oxford University Press, Oxford King, W.R. (1988) 'How Effective is your Information Systems Planning?', Long Range Planning, vol. 21, no. 5, October, 103-112. King, W.R. and Grover, V. (1991) 'The Strategic Use of Information Resources: an Exploratory Study. IEEE Transactions on Engineering Management, 38, 4, 293-305 Lederer, A.L. & Sethi V. (1988) 'The Implementation of Strategic Information Systems Planning Methodologies', MIS Quarterly, September, 445-461 Mentzas G. (1997) 'Implementing an IS Strategy - A Team Approach', Long Range Planning, vol. 30, no. 1, 84-95. Porter, M.E. (1985). Competitive Advantage, The Free Press, New York Porter M and Millar V. (1985) 'How Information Gives you Competitive Advantage', Harvard Business Review, July-August, 149-160 Porter, M.E. (1987) 'From Competitive Advantage to Corporate Strategy', Harvard Business Review, May-June, 43-59 Prahalad, C.K. and Hamel, G. (1990) 'The Core Competence of the Corporation', Harvard Business Review, May-June, 79-91 Prahalad, C.K. and Hamel, G. (1994) Competing for the Future, Harvard Business School Press, Boston Rackoff, N., Wiseman C. and Ullrich W.A. (1985) 'Information Systems for Competitive Advantage: implementation of a planning process', MIS Quarterly, December, 285-294. Raghunathan T.S. and King, W.R. (1988) 'The Impact of Information Systems Planning on the Organization', OMEGA vol. 16, no. 2, 85-93. Ward J. and Peppard J. (1996), Strategic Planning for Information Systems, 2nd edn., John Wiley and Sons, Ltd., London ?? ?? ?? ?? 2 ...read more.

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