This chapter provides a look at strategic IS. As the author states, "Technology is no longer an afterthought in forming business strategy, but the actual cause and driver." The chapter opening case about Safeway (a large grocery chain in England) provides an excellent example of how an SIS was developed to counter business pressures from other grocers.
When studying SIS, there is one important point to remember: no one ever "just sits down and designs" an SIS. SIS evolve over time, usually as innovative responses to business pressures. As the authors continue, "The strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company a major advantage over the competitive forces it faces in the global marketplace. This creates strategic information systems, systems that support or shape the competitive position and strategies of an E-business enterprise." The key to understanding SIS is to first understand the organization's strategies for responding to business pressures, then seeing how IS and IT can contribute to the strategic responses. SIS support the strategic initiatives of the organization.
It is not uncommon for new IT to open new opportunities for strategic initiatives within organizations. Figure 2.3 on page 51 illustrates how IT can provide the means by which strategic advantages can be gained. The Role of IT in this process:
Porter's Value Chain Analysis Model (Figure 2.9, page 61) provides another perspective on the organization from which SIS can be developed. Porter's model divides organizational activities into two categories: primary activities and support activities (Students with military experience may prefer the terms "line" and "staff" activities). Figure 2.9 illustrates these two categories of activities (although I would have drawn the figure with the "support" activities on the bottom of the figure, illustrating how they "support" the primary activities). Complete understanding of the activities enhances the development of IS to support the activities (an IS cannot be developed if managers don't specifically understand what is required of the IS) . Figure 2.7 (page 55) provides a good overview of SIS from a technology support perspective.