Strategic Information System Management

Background/Review

Technological developments are completely transformed the way in which business organisations function. The growth of digital systems and use of internet have changed the entire information system. The processes and applications which are running with this fast pacing technology, despite of having many advantages, there are certain contemporary issues faced by Deloitte while implementing the strategic information system or strategic information management (SIS/SIM). With growing business operations, the number of customers and business relations have developed largely (Galliers and Leidner, 2014). This implies the amount of information and computers which are aligned in this process are also increasing.

Strategic information systems helps in attaining competitive advantage. Apart from this benefit, firm also acquires low cost production and distribution of products and services (Cassidy, 2016). Since, Deloitte deals completely in information and provides other clients with random professional services, the use of technology is very high. On the other hand, Strategic information management is an integral part of information technology and is based on the internal processing of data that is acquired by the company. For example, storage, transfer, creation and reception are some of the functions of SIM. Issues faced in information systems by organisation is to manage the bulk of information appropriately and also utilising it for future growth.

Despite of the presence of various tools and techniques for handling operational efficiency, there is a strong contemporary issue faced by organisation regarding profitability of company. Deloitte's international presence has been possible due to effective information management (Tsang, 2014). But the company faced a significant problem of maintenance in terms of monetary benefits. Since, there is no exact system which can bring in 100% productivity, the company relies on the tactics which are more suitable in on the practical basis and hence, there is a need to analyse the information systems.

Methodology

Aim: The aim of this study is to critically evaluate the information system and the contemporary issues associated with it at Deloitte.

Objectives:

• To study the information system at Deloitte.
• To analyse the issues existing in current information systems of Deloitte.

This study is completely based on the information systems which are implemented by organisations with help of skilled human resource and certain technologically advanced devices. The data for this study is collected from books and journals that are entirely based on strategic information systems and strategic information management. The previous works of great authors and analysts have depicted that strategic information systems when applied in the business organisations can bring in certain issues which can hinder the progress or growth of company if not correctly managed. On the other hand, it is important to develop practical relevance of these collected information from books and various information system journals. This increases the validity and reliability of information produced in this research.

Henceforth, primary research has been conducted by collecting information from the experiences of previous and currently working employees of Deloitte. They helped in providing deep insight about the contemporary issues which are faced by the company when considering strategic information system/information management. The secondary research was also aided with some internet sources that helped in undermining facts and details regarding the various aspects of information systems and their management.

Literature Review

Strategic information systems as mentioned before are basic information systems that are implemented as corporate business initiatives (Peppard and Ward, 2016). Companies applying such a procedural concept in their functioning have more chances of gaining a competitive advantage. According to Bernus, Mertins and Schmidt (2013), computerisation has led to decrease in human efforts and increase in skills and knowledge levels. The quality of services or products which are provided to clients and customers is increased when such arrangements are applied in business functioning. Although Seidel, Recker and Vom Brocke (2013), stated that purpose behind application of these systems varies according to requirement of the company. For example, Deloitte requires high-tech, good quality information system which can used for delivering uninterrupted services to clients.

On the contrary, strategic information management, as the name suggests helps companies dealing with information to store, categorise, transfer and process data efficiently. The basic purpose of this strategic arrangement is to organise every task and bring in more flexibility in organisation. Petter, DeLone and McLean (2013) declared that a balance is required in both internal and external atmosphere for gaining stability in operational markets. This aspect can be achieved when data or information is managed and handled error-free. Deloitte can experience a significant change in time and efforts that are applied for maintaining customer relations when strategic information systems are introduced.

According to Galliers and Leidner, (2014), there cannot be any system which works ideally with 100% precision and accuracy. On the contrary, Cassidy (2016) relied on the fact that idealistic environments of effective system functioning can be activated when concerned conditions can be made or produced. Today's business environment is transforming on a greater speed. This speed has mainly developed due to fast pace technological advancements. Deloitte is also one such organisation that is growing dependent on information technology. Rainer and et. al. (2013) stated that maintenance and correct usage are the major challenges which are faced by companies when considering strategic information systems.

Maintenance refers to updating information regularly so that piling up of data doesn't take place. According to Petter, DeLone and McLean (2013), company generates data on different aspects i.e. sales, revenues, marketing, expenses and supplier relations, customer relations, etc. This informative content is used by analysts in developing annual reports which estimate company's progress or developments. However, many a times it is considered wastage of space and resources when very old informations are preserved. It is the duty of information analysts and data interpreters to store and process only those data which are valid and reliable. Others should be dispose regularly for avoiding mismanagement Rainer and et. al., (2013).

When equipment or software which is implied in the execution of different business operations are of high quality and technicalities, then the labour or human resource applied for the purpose should also be highly skilled and knowledgeable. On the contrary, it is considered that Deloitte might not go for more recruitments for handling strategic information systems if proper training and development opportunities are provided to the current staff itself. This totally increases the cost of application of strategic information systems and strategic information management (Common Problems in Management Information Systems. 2017). Enterprises are facing this contemporary issue whenever SIS/IM are considered. Apart from the cost of application, goals are the secondary problem which is faced by business organisations.

The objective and goal which is developed by companies have to be communicated and aligned with every activity which is executed and implemented in and out of the business environment. According to Morecroft (2015), there are certain tools and methodologies defined in strategic information management which helps business enterprises in applying metrics or for retrieving analytical information. These tools and techniques are helpful in estimating the opportunities of growth and barriers which are limiting company efficiency (Palvia and Palvia, 2013). This implies that strategic information management is a more efficient tool when it comes to data handling and organising.

Stair and Reynolds (2015) stated that sustainable competitive advantage is a situation in which a company holds no or minimum threats from its competitors and new entries when functioning in a particular market with specific products and services. Customers and their requirements keep on changing with market trends. This constraint brings in difficulty for the company to implement changes if informations are not collected regularly (Willcocks, 2013). For example, Deloitte is dealing with Hiton hotels as the primary outsourcer of customer care facilities. The company enquires with customers regarding current requirements and past dealings. It was evaluated that Hilton did not maintain records and the company had no information about the customer. This implies Deloitte is now facing a difficulty in managing the demands of customers. On the contrary, if strategic information system was initialised by Hilton then, it would have become easier for company to deal with customer appropriately (Common Problems in Management Information Systems. 2017).

Over time, there have been significant developments in information technology. This has given business organisations an opportunity to find ways that can bring in more development and growth to the company. Hence, Deloitte developed its idea of applying strategic information systems in its functioning so that bulk of data is handled and stored for gaining more stability in competitive environments. According to Galliers and Leidner (2014), the age of modernisation is highly guided by computers and computer based applications. Goals and objectives can be achieved with greater accuracy when concerned business activities are performed in a strategically better way (Cassidy, 2016).

Contemporary issues which have been experienced by Deloitte when strategic information systems and management are considered include increase in database problems. Once all the concerned information is provided or uploaded on the database then there are certain hardware limitations and software errors which can only be fixed technically (Palvia and Palvia, 2013). This implies there is still a need for major developments in this context so that database problems can be resolved simultaneously. However, (Peppard and Ward, 2016) stated that strategic information system can be handled efficiently when implemented with strategic information management. This system not only helps in processing the collected information but also brings in more techniques which shall identify the opportunities of growth and future developments (Bernus, Mertins and Schmidt, 2013).

A significant contemporary issue which is faced by Deloitte in context of strategic information systems is change management. Whenever a change is being introduced by the company internally, it is to be handled and implemented in such a way that there is no adverse effect experienced on other operations (Seidel, Recker and Vom Brocke, 2013). Change management plans and strategic approaches can be developed and implemented by business analysts according to their findings and current situation of the company. Information systems lack this feature but strategic information management can be a technique through which changes can be revised or improved according to requirement of the company (Common Problems in Management Information Systems. 2017).

Findings

From the above study and researches, it has been realised that information technology is need of hour. The growing demands of customers and business organisations to inculcate technology in their daily operations has made it difficult for firms in terms of information handling (Petter, DeLone and McLean, 2013). Hence, strategic information systems and strategic information management is considered significant in current scenario. Deloitte provides professional services to various multinational firms. This implies, there has to be huge databases when considering customer information and company details (Rainer and et. al., 2013). For every specific client and business there has to be some sort of space required in the assigned information system.

It was found that this organisation- Deloitte was facing major issue of maintenance in strategic information system. The management of information includes various processes which have been described before. This implies that any sort of negligence in these processes can create a lot of problems in real time applications (Stair and Reynolds, 2015). This reflects the importance of maintenance and timely upgrade of the system which is implied for collecting information. Hence, maintenance is a significant issue of strategic information management. Apart from this problem, it was identified that the company cost of implementation and usage is very high as compared to the installation cost. The reason behind this fact is large scale development in technology. With internet the size of data that is being collected is increasing (Ogiela, 2015). This implies there is more requirement of space and high skilled labour who have the efficiency of handling such volumes of data.

The company has to up-date its functioning from general computers to cloud computers so that entire database can be optimised to a greater space. Although the cost of this application is quite high, it would be fruitful for the company to opt for this option. Another contemporary issue which was identified during the analysis was that change management approach which is provided by the company is not at all suitable currently (Common Problems in Management Information Systems. 2017). Strategic information management and strategic information systems both are not appropriately utilised for bringing in growth and effectiveness when it comes to change management. It has been realised that main reason behind this disability is the lack of proper skills and knowledge to individuals who are handling or operating these systems.

An arrangement that is developed by company with an aim of large scale growth and long term benefits can be correct or applicable effectively only when there is proper usage. The human resource has to be skilled enough in handling such situations where certain controllable errors occur (Ogiela, L., 2015). If not handled correctly, the technology starts loosing its effectiveness. Hence, a usage issue was identified in strategic information systems and strategic information management. Deloitte has to maintain its relations with suppliers, distributors and other stakeholders. When information systems which have been applied for managing these variables are efficient, there is a requirement of strategic information management which helps in evaluating the situations which can turn out to be profitable for the company in long run (Willcocks, 2013).

The use of strategic information systems can be made more effective if it is applied with the tactics of strategic information management. No situation can be more fruitful for the company if it gets to recognise the opportunities and threats which can be utilised for future growth and development. This is possible with help of strategic information management. It not only helps in improving operational efficiency but also generates the factors that have been responsible for limiting the growth and development of company. Henceforth, it is found that strategic information management is important for organisations so that they can sustain their competitive advantage and increase profitability of the company which is further aided with strategic information systems.

Conclusion

This study reflected that modern day business organisations are growing due to efficient information management and control. This has been possible due to effective decision making and strategic choices which organisational heads make before implementation of the respective systems. This report has critical data regarding the issues which are faced by Deloitte after studying its strategic information system and strategic information management. The major issues which are identified in this research include high maintenance cost and improper usage of data. Hence, it can be inferred that strategic information systems and strategic information management are integral part of business functioning especially for large enterprises.

References

• Bernus, P., Mertins, K. and Schmidt, G. J. eds., 2013. Handbook on architectures of information systems. Springer Science & Business Media.
• Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.
• Galliers, R. D. and Leidner, D. E., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.
• Morecroft, J. D., 2015. Strategic modelling and business dynamics: a feedback systems approach. John Wiley & Sons.
• Ogiela, L., 2015. Advanced techniques for knowledge management and access to strategic information. International Journal of Information Management. 35(2). pp.154-159.
• Palvia, P. C. and Palvia, S. C., 2013. Understanding the global information technology environment: representative world issues. Strategic Information Management, p.151.
• Peppard, J. and Ward, J., 2016. The Strategic Management of Information Systems: Building a Digital Strategy. John Wiley & Sons.
• Petter, S., DeLone, W. and McLean, E. R., 2013. Information systems success: The quest for the independent variables. Journal of Management Information Systems. 29(4). pp.7-62.
• Rainer, R. K. and et. al., 2013. Introduction to information systems. John Wiley & Sons.
• Seidel, S., Recker, J. C. and Vom Brocke, J., 2013. Sensemaking and sustainable practicing: functional affordances of information systems in green transformations. Management Information Systems Quarterly. 37(4). pp.1275-1299.
• Stair, R. and Reynolds, G., 2015. Fundamentals of information systems. Cengage Learning.

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