1.4   Strategic Vision and Planning


IS enhances the procedure by which long term objectives are set, achieved and reviewed (See Figure 1.3).
A combination of information systems can be used in a sophisticated manner that facilitates a high level of data screening.
Objectives are set in a more systematic manner.
IS helps maintain a clear vision on how the overall business performance is.
The systematic and logical procedure IS follows helps businesses also seek for achieving their survival.
To be survival in business, it requires to be in progress and to keep up with different competitors, to develop, create, excel and expand at different business levels.
The other aspect of survival is the commitment of businesses to federal and state regulations and reporting requirements (we will discuss this in chapter 8)

1.4   Strategic Vision and Planning



Figure 1.3 The interdependence Between Organizations and Information Systems


1.4   Strategic Vision and Planning


Data analysis encountered through IS allows businesses to stretch and expand their functions through new and more advanced business ideas.
Globalization becomes an important and an achievable element of business vision.
The dynamic nature of IS grant businesses the opportunity to be more responsive to market changes.
The dynamic nature of IS grant businesses the opportunity to be more responsive to market changes.
The staff within the business entity feels more empowered, motivated and involved in the running of the business which raises staff morale and increases the business financial return.
Improved decision making are the natural result of IS.
Having the most appropriate IS in place can help obtain and process the most appropriate information that eventually leads to making the best decisions.
IS use necessitates a combination of human and technology thinking and acting powers - making up the perfect ingredients for the best decision making process.
For example, consider a business that has a strategic objective to market its food products in the Malaysian market.
A short term objective for 2012 is to a achieve sales of ten million US dollars.

1.4   Strategic Vision and Planning


Company managers can use a number of IT systems to enforce the execution of such objective including:
Order Management System: to manage customer orders including order preparation and delivery.
Inventory System: to track what is in stock and what orders are required from suppliers to meet the demand of different products.
Accounting System: to manage the financial aspects of client and supplier transactions.
Customer Relationship Management (CRM) System: to support the marketing of products.
The above systems can aid managers in the strategic planning and execution processes.
This includes the monitoring and analysis of sales, expenses, productivity and profitability.
Managers can easily evaluate how far they are from meeting their annual sales target.
They can react quickly to sale weakness in certain areas by e.g., enhancing staff productivity or executing more aggressive marketing campaigns.