Strategic Management and Information Systems

Strategic Management and Information corpses straight this is the period of modern applied science which is the found on Information System it should be use in strategic tout ensembley.Strategic charge is a take of directorial activity under setting goals and everyplace Tactics. Strategic itinerary provides overall direction to the enterprise and is closely related to the field of boldness Studies. In the field of personal credit line administration it is useful to talk near strategic align men amidst the organization and its environment or strategic consistency. According to Arieu (2007), there is strategic consistency when the actions of an organization atomic number 18 consistent with the expectations of oversight, and these in turn be with the market and the context. Strategic management is an ongoing summons that evaluates and controls the business and the industries in which the company is involved assesses its competitors and sets goals and strategies to j oin forces all existing and potential competitors and then reassesses each strategy yearly or quarterly i.e. regularly to determine how it has been implemented and whether it has succeeded or needs shift by a crude strategy to meet permuted circumstances, recent technology, new competitors, a new economic environment., or a new fond, financial, or political environment.Marketing action planPlacement and execution of unavoidable elections atomic number 18 financial, manpower, operational support, time, technology supportOperating with a change in methods or with alteration in structureDistri barelying the specific tasks with tariff or moulding specific jobs to i-on-ones or teams.The process should be managed by a responsible team. This is to keep direct watch on result, resemblance for betterment and best practices, cultivating the effectiveness of processes, calibrating and reducing the variations and setting the process as required.Introducing certain programs involves acquiring the requisition of resources a necessity for developing the process, educate documentation, process testing, and immolation with (and/or conversion from) difficult processes.As and when the strategy effectuation processes, there have been so many problems arising such as human beings relations, the employee-communication. Such a time, marketing strategy is the biggest implementation problem commonly involves, with emphasis on the appropriate timing of new harvestings. An organization, with an effective management, should experiment to implement its plans without signalling this fact to its competitors.3 In general terms, there are cardinal main approaches, which are opposite exclusively complement each different in some ways, to strategic managementThe Industrial Organizational get onbased on economic theory deals with issues like competitive rivalry, resource allocation, economies of scaleassumptions rationality, self discipline behaviour, profit maximizatio nThe Sociological adventdeals primarily with human interactionsInformation- and technology- control strategyPeter Drucker had theorized the rise of the association thespian back in the 1950s. He described how fewer workers would be doing carnal labour, and more would be applying their minds. In 1984, gutter Nesbitt theorized that the future would be driven largely by tuition companies that managed culture well could obtain an advantage, besides the profitability of what he calls the nurture float ( entropy that the company had and others desired) would all but disappear as inexpensive computers made information more accessible. Daniel buzzer (1985) examined the sociological consequences of information technology, while Gloria Schuck and Shoshana Zuboff looked at psychological factors. Zuboff, in her atomic number 23 year study of eight pioneering corporations made the important distinction between automating technologies and info mating technologies. She studied the effe ct that both had on one-on-one workers, private instructors, and organizational structures. She largely con steadfastlyed Peter Druckers predictions three decades earlier, about the immensity of flexible decentralized structure, work teams, cognition sharing, and the central role of the knowledge worker. Zuboff in any case detected a new basis for managerial authority, based not on position or hierarchy, but on knowledge (also predicted by Drucker) which she called participative management. In 1990, Peter Senge, who had collaborated with Arie de Geus at Dutch Shell, borrowed de Geus notion of the teaching organization, expanded it, and popularized it. The underlying theory is that a companys ability to gather, analyze, and use information is a necessary requirement for business success in the information age. (See organizational breeding.) In order to do this, Senge claimed that an organization would need to be structured such that75People give the sack continuously expand their efficacy to learn and be productive,New patterns of thinking are nurtured,Collective aspirations are encouraged, andPeople are encouraged to see the whole picture together.Senge determine five disciplines of a learning organization. They arePersonal responsibility, self reliance, and supremacy We accept that we are the masters of our own destiny. We make decisions and put up with the consequences of them. When a problem needs to be fixed, or an opportunity exploited, we take the go-ahead to learn the required skills to get it done.Mental models We need to explore our in the flesh(predicate) genial models to understand the subtle effect they have on our behaviour. divided vision The vision of where we want to be in the future is discussed and communicated to all. It provides charge and energy for the journey ahead.Team learning We learn together in teams. This involves a shift from a expression of advocacy to a spirit of enquiry.Systems thinking We look at the whol e rather than the parts. This is what Senge calls the Fifth discipline. It is the gum tree that integrates the other four into a coherent strategy. For an alternative approach to the learning organization, see Garratt, B. (1987).Thomas A. Stewart, for example, uses the term intellectual capital to describe the enthronisation an organization makes in knowledge. It is composed of human capital (the knowledge indoors the heads of employees), customer capital (the knowledge inside the heads of customers that decide to buy from you), and morphologic capital (the knowledge that resides in the company itself). Manuel Castells, describes a nedeucerk club characterized by orbiculateization, organizations structured as a network, instability of employment, and a social divide between those with access to information technology and those without. Geoffrey Moore (1991) and R. Frank and P. Cook85 also detected a shift in the nature of competition. In industries with high school technolo gy content, technical standards become established and this gives the dominant firm a near monopoly. The same is true of networked industries in which interoperability requires compatibility between users. An example is tidings processor documents. Once a product has gained market dominance, other products, change surface far superior products, cannot compete. Moore showed how firms could attain this enviable position by victimization E.M. Rogers five map adoption process and focusing on one group of customers at a time, using each group as a base for marketing to the next group. The virtually difficult cadence is fashioning the transition between visionaries and pragmatists (See Crossing the Chasm). If successful a firm can create a bandwagon effect in which the momentum builds and your product becomes a de facto standard. Evans and Wurster describe how industries with a high information component are being transformed.86 They cite Encartas demolition of the Encyclopedia Bri tannica (whose sales have plummeted 80% since their peak of $650 million in 1990). Encartas reign was speculated to be short-lived, eclipsed by cooperative encyclopedias like Wikipedia that can operate at very low bare(a) costs. Encartas service was subsequently turned into an on-line service and dropped at the fetch up of 2009. Evans also mentions the music industry which is desperately looking for a new business model. The upstart information savvy firms, unburdened by inapt physical assets, are changing the competitive landscape, redefining market segments, and disintermediating some channels. whiz manifestation of this is personalized marketing. Information technology allows marketers to treat each individual as its own market, a market of one. Traditional ideas of market segments go forth no longer be relevant if personalized marketing is successful. The technology sector has provided some strategies directly. For example, from the package ontogeny industry agile softw are development provides a model for shared development processes. Access to information systems have allowed cured managers to take a much more complete view of strategic management than ever before. The most notable of the extensive systems is the balanced scorecard approach developed in the early mid-nineties by Drs. Robert S. Kaplan (Harvard Business School) and David Norton (Kaplan, R. and Norton, D. 1992). It measures several factors financial, marketing, production, organizational development, and new product development in order to achieve a balanced perspective.Knowledge-driven strategy close current approaches to business strategy focus on the mechanics of management e.g., Druckers operational strategies and as such are not true business strategy. In a post-industrial world these operationally foc utilise business strategies attach on conventional sources of advantage have essentially been eliminatedScale used to be very important. But now, with access to capital an d a global marketplace, scale is achievable by multiple organizations simultaneously. In many cases, it can literally be rented.Process improvement or best practices were one time a favored source of advantage, but they were at best temporary, as they could be copied and adapted by competitors.Owning the customer had always been thought of as an important form of competitive advantage. Now, however, customer loyalty is far slight important and difficult to maintain as new brands and products emerge all the time.In such a world, differentiation, as elicudated by Michael Porter, Botten and McManus is the only way to maintain economic or market superiority (i.e., comparative advantage) over competitors. A company must OWN the thing that differentiates it from competitors. Without IP self-control and protection, any product, process or scale advantage can be compromised or replete(p)ly lost. Competitors can copy them without fear of economic or legal consequences, thereby eliminatin g the advantage. (For an explanation and elucidation of the post-industrial worldview, see George Ritzer and Daniel Bell.)The psychology of strategic managementSeveral psychologists have conducted studies to determine the psychological patterns involved in strategic management. Typically senior managers have been asked how they go about making strategic decisions. A 1938 treatise by Chester Barnard, that was based on his own deliver as a business executive, sees the process as informal, intuitive, non-routinized, and involving primarily oral, 2-way communications. Bernard says The process is the sensing of the organization as a whole and the total blot relevant to it. It transcends the capacity of merely intellectual methods, and the techniques of discriminating the factors of the situation. The terms minded(p) to it are feeling, judgement, sense, proportion, balance, appropriateness. It is a matter of art rather than science. In 1973, enthalpy Mintzberg found that senior manag ers typically deal with unpredictable situations so they strategize in ad hoc, flexible, dynamic, and implicit ways. . He says, The job breeds adaptive information-manipulators who prefer the live concrete situation. The manager works in an environment of stimulous-response, and he develops in his work a clear preference for live action.88 In 1982, John Kotter studied the daily activities of 15 executives and concluded that they spent most of their time developing and working a network of relationships from which they gained general insights and specific exposit to be used in making strategic decisions. They tended to use mental road maps rather than systematic planning techniques.89 Daniel Isenbergs 1984 study of senior managers found that their decisions were highly intuitive. Executives often sensed what they were going to do before they could apologise why.90 He claimed in 1986 that one of the reasons for this is the complexity of strategic decisions and the resultant inform ation uncertainty.91 Shoshana Zuboff (1988) claims that information technology is widening the divide between senior managers (who typically make strategic decisions) and operational level managers (who typically make quotidian decisions). She claims that prior to the widespread use of computer systems, managers, even at the most senior level, engaged in both strategic decisions and routine administration, but as computers facilitated (She called it deskilled) routine processes, these activities were moved further down the hierarchy, leaving senior management free for strategic decions making. In 1977, Abraham Zaleznik identified a expiration between leaders and managers. He describes leadershipleaders as visionaries who inspire. They care about substance. Whereas managers are claimed to care about process, plans, and form.92 He also claimed in 1989 that the rise of the manager was the main factor that caused the decline of American business in the seventies and 80s.The main dif ference between leader and manager is that, leader has followers and manager has subordinates. In capitalistic society leaders make decisions and manager usually follow or execute.93 Lack of leadership is most electronegative at the level of strategic management where it can paralyze an entire organization.94 According to Corner, Kinichi, and Keats,95 strategic decision making in organizations occurs at two levels individual and aggregate. They have developed a model of parallel strategic decision making. The model identifies two parallel processes both of which involve acquiring attention, encoding information, storage and retrieval of information, strategic choice, strategic outcome, and feedback. The individual and organizational processes are not independent however. They interact at each stage of the process.ReferencesDavid, F Strategic Management, ColumbusMerrill Publishing Company, 1989Lamb, Robert, Boyden Competitive strategic management, Englewood Cliffs, NJ Prentice-Hal l, 1984Sweet, Franklyn H. Strategic Planning A Conceptual Study, Bureau of Business Research, The University of Texas, 1964Chandler, Alfred system and Structure Chapters in the history of industrial enterprise, Doubleday, New York, 1962.