Strategic planning for an organization involves long-term policy decisions, like location of a new plant, a new product, diversification etc. Show
Strategic planning is mostly influenced by −
Strategic planning sets targets for the workings and references for taking such long-term policy decisions and transforms the business objectives into functional and operational units. Strategic planning generally follows one of the four-way paths −
In this chapter, let us discuss the Strategic Business Objectives of MIS with regards to the following aspects of a business −
Operational ExcellenceThis relates to achieving excellence in business in operations to achieve higher profitability. For example, a consumer goods manufacturer may decide upon using a wide distribution network to get maximum reach to the customers and exposure. A manufacturing company may pursue a strategy of aggressive marketing and mass production. New Products, Services, and Business ModelsThis is part of growth strategy of an organization. A new product or a new service introduced, with a very fast growth potential provides a mean for steady growth business turnover. With the help of information technology, a company might even opt for an entirely new business model, which will allow it to establish, consolidate and maintain a leadership in the existing market as well as provide a competitive edge in the industry. For example, a company selling low priced detergent may opt for producing higher range detergents for washing machines, washing soaps, and bath soaps. It involves market strategies also that includes planning for distribution, advertisement, market research and other related aspects. Customer and Supplier IntimacyWhen a Business really knows their Customers and serves them well, 'the way they want to be served', the Customers generally respond by returning and buying more from the firm. It raises revenues and profits. Likewise with Suppliers, the more a Business engages its Suppliers, the better the Suppliers can provide vital information. This will lower the cost and bring huge improvements in the supply-chain management. Improved Decision MakingA very important pre-requisite of strategic planning is to provide the right information at the right time to the right person, for making an informed decision. Well planned Information Systems and technologies make it possible for the decision makers to use real-time data from the marketplace when making informed decisions. Competitive Advantage and SurvivalThe following list illustrates some of the strategic planning that provides competitive advantage and survival −
What are the strategies for applying MIS in business?MIS - Strategic Business Objectives. Decision of diversification i.e., expansion or integration of business.. Market dynamics, demand and supply.. Technological changes.. Competitive forces.. Various other threats, challenges and opportunities.. What are the types of strategies in management information system?It can be classified into four broad classes 1. Overall Company Strategy 2. Growth Strategy 3. Product Strategy and 4.
What is strategy in management information system?A management information systems strategy is a plan for developing management information systems, which maximize the ability of the organization to achieve its agreed objectives.
What are the strategic business objectives that could be achieved by using information systems?There are three ways an information system can add value to a business: Help managers make better decisions. Help make business processes more efficient. Increase profitability.
|