Key Aspects of Strategic Information Systems (SIS)
1. Characteristics of Strategic Information Systems (SIS)
- Understandability: Information must be clear, using appropriate terms and symbols for proper interpretation.
- Reliability: Data needs to be accurate, consistent, factual, and verifiable throughout the transmission process.
- Relevance: Information should be essential to the administrator’s area of responsibility.
- Integrity: Systems must include all facts necessary for decision-making and problem-solving.
- Conciseness: Irrelevant information should be excluded, focusing on key details and avoiding unnecessary data.
- Opportunity: Information must be available when needed, as delayed information can be less useful.
- Quality: Information should accurately reflect reality at a reasonable cost for processing and distribution.
2. Components of SIS
- Inputs: Data from internal and external sources, continuously added to the system.
- Processing: Data organization, processing, and archiving, often done through computers.
- Outputs: Reports, diagrams, tables, and summaries used for decision-making, presented in an accessible format.
- Feedback: Mechanisms for verification and adjustment, helping managers determine necessary information and measure results.
3. Formal Systems
- Formal systems use established definitions and procedures for data collection, storage, processing, distribution, and use.
Knowledge Level Systems
These systems rely on workers and information specialists to integrate new knowledge into the business.
Strategic Level Systems
These systems help managers address long-term strategic issues and adapt to changes in capabilities, employment trends, and long-term costs.
4. Changes Generated by Information Systems
- Increased Work Efficiency: SIS, particularly computers, enhance efficiency in various sectors like office reservations, banking, healthcare management, and accounting.
- Global Industry Transformation: Well-designed SIS enable businesses to operate directly with other companies, handling transactions in finance, stock, insurance, etc.
- Value Shift to Ideas and Information: Unlike the industrial age, where capital and tangible resources were paramount, today’s focus is on ideas and information.
5. Development Principles in Information Systems
- Involve the user.
- Apply a problem-solving method.
- Define phases and activities.
- Set standards for development and documentation.
- Justify systems as capital investments.
- Be prepared to cancel or revise projects.
- Divide and conquer complex tasks.
- Design systems for growth and change.
6. System Life Cycle
Perception of Need – Feasibility Study – Logical Design – Physical Design – Build – Testing and Implementation – Operation – Maintenance.
7. Spiral Development Method
- A risk-oriented life cycle method dividing software projects into mini-projects.
- Each mini-project focuses on controlling one or more significant risks.
- After controlling all major risks, the spiral model concludes similarly to the waterfall life cycle.
8. Control Security System
Automated systems are crucial in business, government, and daily life, requiring institutions to protect their SIS and ensure accuracy and reliability.
Businesses must develop contingency plans to address potential malfunctions or system failures.
Electronic data storage presents greater vulnerability compared to manual processing, as hardware errors can lead to system collapses.