Question.

Considering that information technology /information systems is a force within the business world today and hence a need for strategic information systems management. Using a case nay one of the business establishments of your choice (not hypothetical/imagined) perform a strategic analysis using any of the analysis tools studied. Note: 1. The answers should reflect practical rather than hypothetical orientation. 2. Maximum four pages

ANSWER Information Systems (IS) refers to a set of interrelated components that collect (or retrieve), process, store and distribute information to support decision-making, coordination, and control in an organization. The IT is the supporting hardware that provides the infrastructure to run the information Systems. IS refers to the part of the organization related to IT, Management Information Systems (MIS), decision-Support System (DSS) and strategic management information Systems (IMIS). MIS is a generic term used to describe information systems, although it can refer to provision of management information, normally at the tactical level of management. DSS are available higher levels to support decisions made. SMIS is available to strategic management to provide summarized information to assist their decision-making. 1

Information Management (IM) has become a complex activity and the issues and tasks involved are being defined by a number of organizational and technical changes. The key issues include: People focus, rather than concentrating on technological concerns. Cost effectiveness. Information dissemination Business process redesign or re-engineering Reporting relationships that positions IS into the organization and not at a distance. Business perspective on information systems From a business perspective, an Information System is an organizational and management solution, based on IT, to a challenge posed by the environment. To fully understand Information Systems, a manager must understand the broader organization, management, and IT dimensions of systems and their power to provide solutions to challenges and problems in the business environment. Managerial roles and decisions vary at different levels of the organization. Senior Managers make long-range strategic decisions about products and services to produce. Middle managers carry out the programs and plans of senior management. Operational managers are responsible for monitoring the firms daily activities. All levels of management are expected to be creative and to develop novel solutions to a broad range of problems. Each level has different information needs and IS requirements. Why Information Systems? It is widely recognized that Information systems knowledge is essential for mangers because most organizations need Information Systems to survive and prosper. Information Systems can help companies extend their reach to faraway locations, offer new products and services, reshape jobs and work flows, and profoundly change the way they conduct business. Strategic analysis It involved analyzing the strengths of a business position and understanding the importance of external factors that influenced the position compared to others. 2

According to the competitive advantages on e commerce explained above, the system analyst comes out with a many different solutions to which to choose from. Critical tools were used i.e. 1. SWOT analysis Definition: SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. Strength: characteristics of the business or team that give it an advantage over others in the industry. Weakness: are characteristic that place the firm at a disadvantage relative to others. Opportunities: external chances to make to make greater sales or profits in the environments. Threats: External elements in the environment that could cause trouble for the business. SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment. Once key strategic issues have been identified, they feed into business objectives, particularly marketing objectives. SWOT analysis can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porter's Five-Forces analysis. It is also a very popular tool with business and marketing students because it is quick and easy to learn. The Key Distinction - Internal and External Issues Strengths and weaknesses are Internal factors. For example, strength could be your specialist marketing expertise. A weakness could be the lack of a new product. Opportunities and threats are external factors. For example, an opportunity could be a developing distribution channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a company's products. A threat could be a new competitor in an important existing market or a technological change that makes existing products potentially obsolete. it is worth pointing out that SWOT analysis can be very subjective - two people rarely come-up with the same version of a SWOT analysis even when given the same information about the same business and its environment. Matching and Converting Another way of utilizing SWOT is matching and converting. 3

Matching is used to find competitive advantaged by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses rot heats to strengths or opportunities. An example of conversion strategy is to find new markets. If threats or weaknesses cannot be converted a company should try to minimize or avoid them Use of SWOT analysis The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in decision making situation when a desired end state (objective) has been defined. Examples include non-profit organizations, government units and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey. Case Scenario: This scenario is based on a business-to-business manufacturing company who historically rely on distributors to take their products to the end user market. The opportunity and therefore the subject for the SWOT analysis, is for the new manufacturer to create a new company of its own to distribute its products direct to certain end-user sectors, which are not being covered or developed by its normal distributers. CREATION OF OWN DISRIBUTER COMPANY TO ACCESS NEW END-USER SECTORS NOT CURRENTLY BEING DEVELOPED. 1. Strengths: End-user sales control and direction. Right products, quality and reliability. Superior products performance vs. competitors. Better product life and durability. Spare manufacturing capacity. Some staff has experience of end-user sector. Have customer lists. Direct delivery capability. 4

Product innovation ongoing. Can serve from existing sites. Products have the required accreditations. Process and IT should cope. Management is committed and confident. Customer lists not tested. Some gaps in range for certain sectors. We would be a small player. No direct marketing experience. We cannot supply end-user abroad. Need more sales people. Limited budget. No pilot or trial done yet. Delivery staffs need training. Customer service staffs need training. Processes and system etc. Management covers in sufficient. Could develop new products. Local competitors have poor products. Profit margins will be good. End-users respond to new ideas. Could extend to overseas. New specialist application. Can surprise competitors. Support core business economies. Could seek better supplier deals.

2. Weaknesses

3. Opportunities

4. Threats 5

Legislation could impact. Environmental effects would favor larger competitors. Existing core business distribution risk. Market demand very seasonal. Retention of key staff critical. Could distract from core business. Possible negative publicity. Vulnerable to react attack by major competitors.