Strategic Information System
In present days, most of the business organizations are using the strategic information system to gain more competitive advantage and also for better management of the organization. The implementation of information system generally improves the overall performance as well as the profitability of the organization. The key intention of all organizations is to increase and maintain corporate profitability by using different strategies and SIS generally helps management in case of a decision-making process (Upadhyay et al., 2017). This particular section of literature review mainly focused on the importance of strategic information system. At the same time, this study also highlights different problems faced by an organization at the time of implementing Strategic Information System (Wiegmann and Shappell, 2017). Some remedies also discussed in this section that generally helps to avoid the problems during implementation of SIS for structural and functional development of the organization.
1.2 Overview of Samsung
Samsung is one of the largest smartphone and electronics Manufacturer Company all over the world. This organization is also using Strategic information system and it is the major part of management information system. A strategic information system is essential for this organization to improve financial as well as structural position. According to the viewpoint of Sligo et al., (2017), all the companies need to take different innovative strategies due to the increase of competition in the market. Brand image is one of the major strength of Samsung. The product quality of this organization is world class. The headquarter of this company is in Seoul, South Korea. More than 450000 employees are working in this organization. The overall revenue of this organization is $174 billion in the financial year 2016. The main vision of this organization is to provide the better experience to the customer in future (SAMSUNG, 2017). At the same time, the main intention of this organization is to be the leading smartphone brand all over the world.
To provide better quality products and service it is important for an organization to select and implement different innovative ideas to manage the daily workforce in a proficient manner. As per the viewpoint of Kasemsap, (2017), proper service of an organization mainly helps to gain more loyal customer from the market. The high price range in comparison to other companies also reduces the sales of this organization. Similar products are available in the market at a lower price and it is one of the major weaknesses of this organization. The Implementation of proper strategic information system help this organization in decision making to reduce the product price for the better response as well as grab the attention of customers. At the same time, proper innovation, using of different upgrade technologies also helps this organization to capture the large market in a proficient manner.
1.3 Identification of Different Issues
Samsung also faced various problems with a view to Strategic Information System. the higher official ad the management of this organization is not used proper business planning in case of dealing with new suppliers for that reason it also hampers the overall profitability and production cost of the organization. In Accordance with Upadhyay et al., (2017), the system capabilities of customer and supplier generally depend on the strategic information system. To identify the capability of system usage it is important for all organization to implement upgrade information systems. At the same time, it is important for Samsung to evaluate the current market position to implement a project in the market. This company also used the world-class designers and engineers to design their products. This company also needs to maintain proper ethics and corporate culture in their organization.
Apart from that Samsung also missed different business opportunities from the market and that generally hamper the overall financial condition of Samsung. As per the viewpoint of Ho and O'Sullivan, (2017), the information system can be categorized into three different parts such as financial information system, operational information system and strategic information system. The first two information systems generally depend on SIS. The entrance of new electronic and smartphone companies are entered in the market and most of the companies are offering better features and quality in the affordable price range and that also reduce the sales of Samsung. For that reason, SIS is essential for Samsung to increase the sales volume and grab the attention of more customers. In present days, the young generation mainly compares the specification, design and price (Lee, 2017). To increase the sales and compete with other companies it is important for Samsung to provide upgrade specification in low price range to grab the attention of more customers. Misuse of resources is one of the major problems in Samsung and that also hampered the overall economy of this organization.
1.4 Role of Information System to Maintain Overall Organizational Strategies
There are different facilities of Strategic information system and it also provides the organization competitive advantages in operating market. All the organizations are now using different information technologies for better market research. Market research also helps the organization to keep the database update and that is important for an organization to understand the current trends and buying patterns of customers. Identification of current trends generally helps organizations to fulfill their potential customers (Sligo et al., 2017). To gain more customer loyalty from the market and improve the brand image, implementation of an information system is essential. Not only market research but it also improves the overall performance of the organization. Decision making is one of the important processes for every organization. Financial profitability and organizational performance mainly depend upon decision-making process of the organization. The higher official and the management plays the key roles in decision making and formation system generally provides the management with the details information with a view to the current position of this organization and the details analysis of operating market (Chen et al., 2017). On the other hand, the details information with a view to the current financial position also helps the organization to take different actions and implement various strategies to avoid upcoming threats to this organization.
According to the viewpoint of Alshubaily and Altameem, (2017), SIS generally supports the organization to identify different opportunities for the company. This type of information system also ensures different resources that generally needed in the organization to improve brand image as well as increase financial profitability. SIS can predict the future success and failure chances of an organization. That means it mainly indicates the upcoming threats of an organization. The company can strengthen their position and take different strategic actions to avoid all the upcoming threats (Lee, 2017). On the other hand, proper information with a view to different resources also reduces the misuse and increase the profit percentage. That also can generate a huge return by planning on different projects. It is essential for Samsung to manage the day to day workforce in a proficient manner and that is needed to maintain perfect corporate culture and environment in the workplace. The comfortable workplace also increases employee retention and the employees are one of the major assets of an organization. Support for more complex information; generalize all the data of the organization, in case of storing all the valuable information such as historical financial data is essential for an organization. Historical financial data are required to measure the overall financial performance of an organization. Most of the organizations mainly identify their basic needs to run the business actions in a smoother manner.
Database development of an organization is essential because information is more valuable in case of selecting different strategies to compete with different rival companies. The managers understand the basic values of single information, for that reason they store all the information in a proficient manner for future use (SAMSUNG, 2017). In case of expanding the business in foreign market data-driven technologies are essential to identify the potential market as well as customer buying patterns. Critical success factor generally provides the organization successful competitive performance. SIS usually delivers different information technology and highly payback applications for better identification of IT resource requirements (Upadhyay et al., 2017). This particular system supports the organization in case of select the short term and long term an operational decision that generally helps the organization to achieve their goal. Nowadays, upgrade of information technology also maximizes the benefits of information system and that mainly provides the organization a perfect strategic direction ad also increase the overall capabilities for better financial and structural growth in future.
1.5 Difficulties Faced by Samsung in Developing Information System Strategies
Samsung also faced different difficulties during the implementation of the strategic information system. One of the major problems is lower production rate (SAMSUNG, 2017). Production is essential to maintain the profitability as well as maintain a proper supply of products based on market demand. If a company is not able to provide sufficient products based on customer demand, it also reduces the brand image and profitability of the organization. At the same time, the other major problems of an information system are software crisis that means the unavailability of required software. The backlog and maintains of different software is very costly (Wiegmann and Shappell, 2017). The using of an information system is not tie efficient ad it also delays every action of an organization. Due to the high cost of different software and technology the budget overruns.
The using of different upgrade technology also improve the overall information technology and grab the attention of more customer but the product quality of Samsung also reduced. That generally increases service cost of the company leads to decrease the overall profitability. The large number of software problems ad failure of software also increases the overall expenses. As per the viewpoint of Chen et al., (2017), most of the Information system development project ware cancelled before completion. At the same time, it has been identified that a maximum number of completed projects are less functional and that is one of the major problems. That means companies are not able to use the information system proficiently but also expense money for the maintenance of their assets. For that reason, it is important for every organization to evaluate the technological position of their organization.
At the same time proper experienced staffs are needed in the organization to operate different software and applications. Recruitment of experienced staffs and use of different resource persons generally increase the overall expenses (Kavanagh, and Johnson, 2017). Samsung also used different upgrade technologies and experienced staffs for implementing information systems. Sometimes Information systems are also unable to maintain the performance of organization due to the unethical behavior of different staffs and higher officials. At the same time, continues improvements of software and technology also increase the complexity with is harder to maintain. Different data architectures are needed to develop a successful information system and most of the organizations are not able to provide high quality data architecture due to excessive cost and that also hampered the overall IS development processes of the organizations.
1.6 Failure of Information System
Failure is the key to success in case of developing an Information System. There are different reasons that can hamper the overall architecture of information system such as insufficient requirements of system, Loss of information, lack of experience between the staffs are the major reasons and sometimes the failure of systems and other hardware problems also can hamper the information system of an organization (Alshubaily and Altameem, 2017). Proper cooperation of managers and the accountants are needed to gather and store all the information with a view to various financial data of an organization. Sometimes the whole information system is not able to provide a proper strategic solution to the organization and that generally hamper the overall profitability of the organization.
1.6.1 Different Expected Problems that Might Arise In Information System Projects
Usability of this application is one of the major problems for all organization and the use of complicated user interference also can create different problems. The strategic information system is needed for every organization to gain more competitive advantages. To store all the data it is important to update the entire database (Wiegmann and Shappell, 2017). For that reason, the proper assistance of resource persons is required to maintain strategic Information System. On the other hand, the overall cost of the project is huge and continues investment is needed to develop a successful information system. Based on the viewpoint of Lee, (2017), excess time involvement in Information system reduces the overall workforce of an organization. Apart from that, he high-cost involved in this project also increases the production cost, as well as product cost, leads to reduce sales volume of an organization. Most of the SIS development projects were cancelled due to the over high involvement of cost and staffs. Lack of expertise people is one of the major problems of this project. If managers and other staffs are unable to understand the operation of the whole system than it also hampers the overall decision-making process of the company.
1.6.2 Suggested Remedies to Solve the Problems
Different actions of higher official and the involvement of management are required to implement a successful SIS project. The identification of systemic guidelines is required to carry out the complete ISD effort. The information system mainly designed based on the requirement of organization (Kavanagh, and Johnson, 2017). For that reason, the organization needs to identify the major requirements that generally help their business position to implement the overall information system in an organization. At the same time, the technical training program is required for the existing staffs and managers to operate the whole information system in a proficient manner.
On the other hand, the company needs to implement each and every technical requirements to get better performance and assistance. The managers and the accountants also need to provide all the information on a regular basis to keep update the database. At the same tie trend analysis capability of this software also provide different valuable formations with a view to increase product quality. For that reason, proper expertise is needed to evaluate the information to avoid upcoming risks. In accordance with Jia, Guo and Barnes, (2017), the management needs to select an expertise and technical monitoring team to monitor the total information system management. That usually helps the organization to manage sufficient time to provide proper workforce in other sections.
1.7 Literature Gaps
Literature gaps refer to the missing information of literature. This particular research study mainly focused on the importance of strategic information system. At the same time, it also describes different reasons for Information system failure. This study mainly shows different problems of information system faced by Samsung. Some literature with a view to data interference and the overall data architecture system is missing in this literature. The architecture of SIS in case of Samsung is also missing in this study.
Based on the above study it has been identified that strategic information system is one of the major parts of management information system that generally provides the organization different strategic advantages. Samsung also faced different problems regarding decision making for that reason this organization also implement this system to get the more competitive advantage as well as access and store all the financial and managerial information in an efficient manner. Most of the companies also faced different problems during IS development due to high cost and time involvement. For that reason, the higher management of organizations needs to use different resources and technical requirements to save the time cost of the projects. That mainly helps the organizations in sustainable development.
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