scholarly journals Strategizing Information Systems: An Empirical Analysis of IT Alignment and Success in SMEs

Computers ◽  
2019 ◽  
Vol 8 (4) ◽  
pp. 74 ◽  
Author(s):  
Kitsios ◽  
Kamariotou

IT investment is a crucial issue as it does not only influence the performance in Small-Medium Enterprises (SMEs) but it also helps executives to align business strategy with organizational performance. Admittedly, though, there is ineffective use of Information Systems (IS) due to a lack of strategic planning and of formal processes resulting in executives’ failure to develop IS plans and achieve long-term sustainability. Therefore, the purpose of this paper is to examine the phases of Strategic Information Systems Planning (SISP) process that contribute to a greater extent of success so that guidelines regarding the implementation of the process in SMEs can be provided. Data was collected by 160 IS executives in Greek SMEs during February and May 2017. Multivariate Regression Analysis was applied on the detailed items of the SISP process and success constructs. The results of this survey present that managers should be aware of the strategic use of IS planning so as to increase competitive advantage. Senior executives should choose the appropriate IT infrastructure (related to their business strategy and organizational structure), so as to align business strategy with organizational structure. The findings of this paper could help IS executives concentrate their efforts on business objectives and recognize the great value of the planning process on their business.

2018 ◽  
pp. 409-438
Author(s):  
Ray M Kekwaletswe

Strategic planning of information systems is vital in the business environment and this is still an open issue in the management information systems research. Through planning, organisations develop effective long-term use of information systems and subsequently ensuring the support of organisational objectives. This chapter develops a contingency model for measuring the success of strategic information systems planning in the context of medium enterprises. The contingency theory, as an analytical lens, advocates that organisational success can be achieved by matching organisational characteristics to the contextual factors. Drawing from this notion, this chapter postulates that the strategic information systems planning process, as a phase, may lead to successful planning. This relationship is moderated by contingency variables characterised by the presence of environmental uncertainty, organisational structure, government and policies, business strategy orientation and information systems maturity. This chapter studies the moderating role of contingency variables and identifies the influential factors and their effect.


Author(s):  
Ray M Kekwaletswe

Strategic planning of information systems is vital in the business environment and this is still an open issue in the management information systems research. Through planning, organisations develop effective long-term use of information systems and subsequently ensuring the support of organisational objectives. This chapter develops a contingency model for measuring the success of strategic information systems planning in the context of medium enterprises. The contingency theory, as an analytical lens, advocates that organisational success can be achieved by matching organisational characteristics to the contextual factors. Drawing from this notion, this chapter postulates that the strategic information systems planning process, as a phase, may lead to successful planning. This relationship is moderated by contingency variables characterised by the presence of environmental uncertainty, organisational structure, government and policies, business strategy orientation and information systems maturity. This chapter studies the moderating role of contingency variables and identifies the influential factors and their effect.


Information ◽  
2020 ◽  
Vol 11 (6) ◽  
pp. 331
Author(s):  
Maria Kamariotou ◽  
Fotis Kitsios

Agritourism is long established and the interest in diversification of agricultural enterprises into tourism has increased. However, many challenges have emerged regarding the lack of appropriate skills, strategic planning, Information Systems (IS), as well as increased costs in production processes. In Greece, the contribution of agritourism to economic growth has increased in the last decade, but the relationship between the agricultural sector and agritourism is a reason for certain people having largely taken advantage from the development of tourism in a specific area. Greek businesses operating in the agritourism sector are seeking long-term sustainability. However, they lack strategic planning and effective use of IS. As the strategic implementation of Information Technology (IT) in Small Medium Enterprises (SMEs) in the agritourism sector is under-researched, this paper aims to investigate how the process of Strategic Information Systems Planning (SISP) affects the success of Greek SMEs in the agritourism industry. IS executives completed the survey and ANOVA analysis was used for data analysis. The findings of the paper indicate that IS executives do not focus on the analysis of the external environment and the evaluation of opportunities for IS development. In addition, the lack of formulation of the IT strategy creates inefficient and unsuccessful IT projects.


Logistics ◽  
2021 ◽  
Vol 5 (4) ◽  
pp. 73
Author(s):  
Maria Kamariotou ◽  
Fotis Kitsios ◽  
Michael Madas

Background: E-business and Information Technology (IT) are critical components in the improvement of logistics functions. As logistics contributes to the entire strategic planning of a firm, e-business and IT applications support the implementation of strategic planning in a more efficient and effective manner. According to this view, previous scholars have ignored the importance of Information Systems (IS) planning in the selection and implementation of appropriate IS as per situation. This paper explores the Information Systems Planning (ISP) phases that influence the success of the process. Methods: Data were collected and analyzed using Regression Analysis by 73 IT managers for Greek Small and Medium Enterprises (SMEs) in the logistics sector. Results: The outcomes of the analysis show that executives ought to be informed about the strategic utilization of IS planning in order to improve competitive advantage. Furthermore, managers must also select the suitable IT facilities to align business strategy with the business structure. Conclusions: The outcomes support managers to focus on logistics functions and realize the importance of such ISP in logistics. As a result, selecting appropriate IS leads to increased competitive advantage, faster communication, support for the storage and retrieval of more accurate data, cost reduction and increased customer value.


2021 ◽  
Vol 6 (3) ◽  
pp. 124-128
Author(s):  
Fadhilla Sandra Adjie ◽  
Alvanov Z. Mansoor ◽  
Sony Rustiadi ◽  
Ira Fachira

In seeking differentiation value, Small Medium Enterprises tend to have limitations which hinder their way in developing the business strategy. As an SME that has established its two-year business operation—Kopi Bon is being analyzed and investigated from the perspective of behavioral economics’ Planning Fallacy—as it shows that the planning process is filled with distortion made from judgments as a result of behavioral biases. The study revealed how cognitive biases that involve planning fallacy as a supporting theory influences the company’s decision-making process—where later could be affected to the decision making in terms of operational activities which comprises of the quality of products and services, to the company’s branding. Also, the study reveals how understanding planning fallacy would make improvement towards business strategy to survive within the pandemic of COVID-19.


This chapter begins by explaining the purpose of strategic information systems planning, which is followed by describing three commonly adopted methodologies. They are known as “business systems planning,” “strategic systems planning,” and “information engineering.” In addition, the six broad process dimensions that characterize the activity of strategic information systems planning are discussed. In order to provide an understanding of what is meant by alignment, the basic concepts are presented and some established principles discussed. In essence, the primary and secondary functions in alignment for a business are explained, including the purpose it serves, how optimum alignment occurs, and when. Some proposed models for strategic alignment are reviewed to provide an understanding of the different types of strategic activities that are involved, and their flow and relationships with each other for interaction. By demonstrating how each model works based on a given set of conditions, the key to achieving strategic alignment for a business is established. The strengths and limitations of each of the models are stated. In particular, the model proposed by Henderson and Venkatraman (1990), the Strategic Alignment Model (SAM), is described in detail to explain how it works. It is explained in the context of four fundamental domains of strategic choice, with each having its own underlying dimensions. In essence, SAM has been developed for conceptualizing and directing the emerging area of strategic management of IT in terms of two fundamental characteristics of strategic management. They are strategic fit (the interrelationships between external and internal components) and functional integration (integration between business and functional domains). These fundamental characteristics are defined with respect to four different perspectives of alignment. Further, three dominant domain types are introduced together with appropriate illustrations of their application. Finally, case studies are presented to show how companies with a technology vision can achieve enormous business success through applying strategic IT alignment and indeed become global players. The chapter concludes with a summary of the main points covered on the concepts of strategic alignment of IT and business.


Author(s):  
Maria Kamariotou ◽  
Fotis Kitsios

Nowadays, turbulence in the businesses' environment is on the increase. Therefore, businesses are obliged to respond to that environmental uncertainty. Strategic Information Systems Planning (SISP) support this effort. Information Systems are connected with business strategy, management skills, decision making and aim to increase competitive advantage. Previous studies have examined the effect of SISP phases on success. Also, other studies have concluded that there is a positive relationship between SISP and firm performance. The aim of this chapter is to present a holistic approach in order to investigate the significance of SISP process, to highlight phases that contribute to a greater extent of success and to draw conclusions concerning the successful implementation of digital strategy in firms and especially in SMEs which are an important part of the economies of developing countries.


Author(s):  
Petros Theodorou

The structure of production during the last decade has been changed radically. The importance of design, flexibility, quality, and dependability increased. The main motive behind that restructuring seems to be the qualitative and quantitative diversification of demand (regulatory, technology, and other issues can be mentioned as well). The diversification of demand forced production to be more flexible in order to accommodate the environment’s variations. Information systems (IS) proved to be a perfect ‘partner’ for the enterprise who wants to move along at this pace: to increase competitive advantage and retain its competitive position in the market. The capabilities of information technology (IT) for increasing competitive advantage forced management to consider IT in the strategic planning process and to consider IT not as a mere tool of bolts and nuts, but as a strategic partner. The key for the successful IT-IS adoption is the strategic IT alignment model. According to this, IT should be aligned with organizations’ structure and employees’ culture in order to avoid resistance and increase core competence at the strategic level. But the strategic options offered by advanced IT investments are not appraised by using the usual hard financial criteria. Instead, Black and Scholes developed a financial formula to valuate derivative financial products and open the road to valuate options offered by real investments. Thus, the application of Black and Scholes’ formula offers an opportunity to valuate financially strategic IT investment.


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