Information Systems and Effective Management

Information technology (IT) is a huge part of effective management that managers have to know.  They have to as they build and put into place new decisions every day.  The information systems (IS) are for the most part completely built from scratch.  The main purpose of strategic information systems planning (SISP) is to create implement new systems to use for the agency that the managers work for.  This is something that has to be worked from the top on down or it will never gain fruition.  There are complications to building these new systems, but if done correctly, it can be a godsend.

SISP Research and Implementation

Steven L. Alter did some research into which agencies have the most success with SISP through adapting to it correctly and optimally.  He has found that applications being created and used now are now built to support the managers who have to make decisions, instead of replacing them.  This is called decision support systems and are used to greatly improve managerial effectiveness.  The problem is that there is a restriction of knowledge as to what kinds of systems are used now.    This means that information systems are out there that the manager and their superiors have not built it themselves, so they don’t know what these systems do.  Don’t just focus on the technical aspect, focus on how the new system will work with the agency in question.

6 Types of Systems

The types of systems used are:

  1. Used to retrieve isolated data
  2. Uses mechanisms for ad hoc analysis of data
  3. Gathers aggregations specified beforehand in standard reports
  4. Can estimate consequences of all proposed decisions
  5. Can propose decisions based off of data gathered
  6. Can help to make strategic decisions based off of the data gathered

Examples of SISP Being Used

Some examples of how SISP is used are:

  • For retrieval of information only – shop floor IS
  • Retrieval and analysis – portfolio analysis system
  • Multiple data bases and analysis – sales IS
  • Eval of decisions using accounting models – source-and-application-of-funds budgeting
  • Eval of decisions using simulation models – marketing decision system
  • Proposing decisions – optimize raw materials usage
  • Making decisions – insurance renewal rate system

Questions to Ask Yourself

There is a huge range of approaches that can be taken here that would be helpful depending on what is needed for said company’s business model.  What do they do?  What needs to be fixed that they would bring this up?  What improvements are going to be implemented?  What do they want the company to strive towards?  What systems are they going to use in order to implement their changes?

Build the System

These are just some of the questions that have to be answered before the company goes forward.  If there’s no clear vision on what is going to be done SISP can be a complete failure instead of being a bonus.  Build small prototypes first of specific areas in order to find where the bugs are.  Then they can be fixed with little or any cost before the big implementation begins.  Just remember as the author points out, building an IS makes sense when it is clear that changes are needed in how decisions are made in the company.  That and everyone learns what the role is of computers are in their workplaces, and helps managers to make decisions dealing with administration and competitive strategies against other companies in their industry.

 

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