IS Strategy Triangle
IS Strategy Triangle is a correlation between Business Triangle , Organizational Strategy and Information Strategy. Those strategy are coordinated in a set of actions to fulfill their respective objectives, purpose and goals. A business strategy is a plan articulating where a business seeks to go and how it expects to get there.
The Information Systems Strategy is a simple framework for understanding the impact of the Information System inside the organizations. This business strategy drives both Organizational and Information strategy.
Organisation’s information resources should therefore be managed using a strategy based on:
- Its strategic objectives, information system should support both Business Strategy and Organizational Strategy.
- A clear idea of the needs of Information and how staff should use that information.
Benefits of having an information strategy. The following is an adaptation:
- decision making on investment in systems and IT is based on organisational strategy and user needs (rather than technology push or the latest trends)
- a strategy avoids wasting time on unnecessary activities, particularly users having to interpret information received in unsuitable formats
- a strategy also ensures an organisation meets its legal requirements, so avoiding unnecessary costs and risk to reputation
- properly managed information supports innovation, productivity and competitiveness
- information activities are unified, so fully contributing to organisational objectives
- a strategy encourages co-operation and openness between managers of information resources. This results in more effective use of the organisation’s information and in more innovation.
4 Keys of IS Strategy :
These key components are sufficient to allow the general manager to assess critical IS issues.
A coordinated strategy with some set of actions to fulfill objectives, purposes and goals. Business Strategy always starts with a mission. Those mission will be stated in mission statements.
Example of companies mission statements :
|Zappos®||To provide the best customer service possible. Internally we call this our WOW Philosophy|
|Amazon®||We seek to be Earth’s most customer-centric company for three primary customer sets: consumer customers, seller customers and developer customers|
These are the Business frameworks that often be used in the company :
- Porter’s Competitive Advantages.
- Differentiation Strategy Variants.
Organizational strategy includes the organization’s design as well as the choices it makes in its work processes. There are 2 frameworks in the Organizational Strategies :
- 1. Business Diamond
- Simple framework for identifying crucial components of an organization’s plan
- Managerial Levers
– Another framework for organizational design, states that successful execution of the firm’s organizational strategy is the best combination of organizational, control, and cultural variables.
The Information Systems Strategy Triangle shows that business strategy always drives organizational and information strategies. Each of those strategies have their own frameworks and method, so in order to create a good IS strategies, it is very neccesary to assess the companies organizational strategies and business strategies because a good IS Strategy will create a positive effects in supporting both the companies organizational strategies and business strategies.