International business management Strategic Information Management Essay

International business management Strategic Information Management - Essay Example SIM is important because information tends to become vague and complicated and very often it can be Organisational Activity can demonstrate a lack of quality in the information.2 A Strategic Information System (SIS) aligns itself with the management strategy and the structure of a Firm and allows the timely response to changes recurring in the business environment and competition issues.3 Wiseman (1985) has defined the strategic information system (SIS) as, "The information system to support or change enterprise's strategy."4 The general perspective of Information management involves a reference to the management of any kind of information .This may involve document management, electronic document management records management, document imaging, process automation and digital asset management.(Wiseman 1985) Historically information management was subject to the nuances of bureaucratic procedures and had a limited role in management decisions.(Galliers 1991).The potential of profit by information management systems has only emerged in the recent decades and the modern businesses view information as a weapon against competition and a strategic resource. (Galliers 1991).The former attitude changed radically in the mid-sixties when organisations started viewing information as a tool for general management support. Until the decade of the eighties however information management was limited to weekly financial and management reporting and accounts of inventory and arrears.(Galliers 1991) During the early nineties these information systems emerged as serving a special purpose. At this point information systems like decision-support systems (DSS)5 and executive support systems (ESS)6 became popular with the main aim of support and the fast expedition of the decision-making process of organisations (managers and executives). (Swatman 1995). Prominent examples of Strategic information systems have included the use of SABRE and APOLLO by the US Airlines in the past for the increase in travel bookings of these Carriers by making sure their names appeared on the first screens of the travel agents.7 In the recent times Information has emerged as a strategic resource to gain competitive advantage, as well as to defeat and frustrate the competition. (Porter 1985).An important example quoted by Porter (1985) of information management is the Paperwork Reduction Act of 1980 the philosophy behind which was to manage information by requiring federal government agencies to develop an information resource officer's role. Such systems being an integral part of SIM ensure the organisations survival in the fast track corporate world. Porter(1985) has also identified a value chain model to help identify problem areas in information systems in order to supply a strategic advantage. Porter (1980) has also identified the competitive forces model which describes a number of external threats and opportunities which can be countered by competitive strategies. See below for a model diagram of both these concepts. The potential of information systems is immense as it can be developed to not only defeat rivals but also to counter the pressure from competing substitutes and an