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Corporate Information Systems Strategy

The introduction of an information system will modify an organisation. However the organisation will also greatly influence the design of the information system. If the system is to meet the needs of the management then its design must take account of management methods and needs. It must recognise the different levels of decision making appropriate to different management levels and roles:

Strategic Strategic decision makers plan long term objectives and policies. Whether or not to extend operations to a new part of the country or to whether to take over a company would be strategic decisions. Strategic decisions are made by a small number of managers at the highest level.
Management Control Management control decision making is to do with monitoring the way in which existing resources are being used and how well the organisation is performing to achieve the goals identified at the higher level.
Operational Control Management decision on how to carry out the tasks specified by higher levels of management.

In addition to the level of decision making that goes on, we can identify the type of decision making which may be either structured or unstructured. Structured decisions are made for repetitive and routine problems or situations such as what to do when a particular stock item is low. Unstructured decisions are made in one off or innovative situations and normally require insight into the problem. Deciding whether or not to extend into a new market would require an unstructured decision - i.e. a decision where there was no structured framework to provide a stock answer.

The development of an information system must take account of the way in which decisions are made within the organisation to ensure that the correct type of information is available at the right level to support the decision making process. In addition it must be remembered that organisations are composed of individuals who will wish to manipulate any new system to gain political advantage within the system or who may see such a system as a threat and oppose its use.

   

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