Strategic management is defined as "the set of decisions and actions resulting in formulation and implementation of strategies designed to achieve the objectives of an organization". The formality of strategic Management systems vary widely among companies. Formality refers to the degree to which membership, responsibilities, authority and discretion is decision making is specified. It is an important consideration in the study of strategic management. Because degree of formality is usually positively correlated with the cost, comprehensiveness, accuracy and success of planning. A number of forces determine the need for formality in strategic management. The size of the organization, its predominant management. styles, the complexity of its environment, its production processes, the nature of its problems, and the purpose of its planning system all combine in determining and appropriate degree of formality. in particular, formality is often associated with two factors: size and stage of development of the company. Methods of evaluating strategic success are also linked o he degree of formality.
[...] The organization shall define the information architecture and capture the data resources for effective strategic planning aligning them suitably with the business processes in the fast changing marketplace. While the information architecture should take care of the latest technology in developing the suitable applications for the business, the human resources aspect shall be kept in focus to specify, recruit and continuously develop the request knowledge and its upgradation in fulfilling the organizational needs in business. The strategy can be effectively implemented by incorporating the following IT structure in the organization. [...]
[...] A Framework for the Strategic Use of Information Technology The cost of acquiring a new customer has been estimated to be five times that of retaining an existing customer. By carefully examining transactions of customer purchases and activities, firms can identify products, and services to defend their customer base against inroads from competitors. Likewise, companies can use these data to identify non-profitable customers linking with CUSTOMERS and suppliers Information systems can counter competitive forces by “locking customers and suppliers. Strategic information systems can make the costs of switching from one product to a competing product prohibitive for customers. [...]
[...] One role of top management to establish and monitor policy for information systems. Users try to influence the formation of policy for information systems. Users try to influence the formation of policy and must execute the policy once it is established. The information services staff desires to participate in the development of policy and its execution. Top management must lead the planning efforts, formulate plans, and influence others in the organization. the information services staff must help formulate various alternatives and evaluate them, particularly where questions about technology are involved. [...]
[...] information TECHNOLOGY and corporate strategy A key task of top management is formulating corporate strategy. A firm can continue its present course, maintaining momentum where it is doing well. Alternatively, the corporation can change its strategy dramatically by deciding among competing alternatives for new ventures. Integrating IT and Strategy There are levels of integration of information technology with corporate strategy. At the lowest level of integration, we find independent information systems that help the firm implement strategy by creating greater operational efficiency. [...]
[...] Integrating these “islands of information” into a coherent architecture is now a priority The Information systems Investment Challenge: A major problem raised by the development of powerful inexpensive computers involves not technology but rather management and organizations. it's one thing to use information technology to design, produce, deliver, and maintain new products It's another thing to make money doing it. How can organizations obtain a sizable payoff from their investment in information systems? Engineering massive organizational and system changes in the hope of positioning a firm strategically is complicated ad expensive Is this an investment that pays off? [...]
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