Strategic management of Information systems

1. Introduction

Reasons why business managers should participate in information systems decisions

1.A business view (IS must be managed as a critical resource)
It both support and consumes a significant amount of an organizations resources this needs to be managed wisely, as a critical resources.

2.People and technology work together (IS enable changes in the way people work together)
Correctly incorporating IS into the design of a business enables people to focus their time and resources on issues that bear directly on customers satisfaction and other revenue and profit generating activities.

3. Integrating business with technology (IS are part of almost every aspect of business)
Is helps simplify organizational activities and processes such as moving goods, stocking shelves, or communicating with suppliers.

4.Rapid change in technology (IS enable business opportunities and new strategies)
The proliferation of new technologies creates a business environment filled with opportunities. The manager’s role is to frame these opportunities so that others can understand them, to evaluate them against existing business needs, and finally to pursue any that fit an articulated business strategy, managers must lead the change driven by IS.

5. Competitive challenges (IS enables business opportunities and new strategies)
General managers are in the best position to see the merging threats and utilize IS effectively to combat ever-changing competitive challenges.

What if managers doesn’t participate

Decisions about IS directly affect the profit of the business, basic
Formula:
Profit=Revenue-Expenses

Revenue
Adopting the wrong technology can cause a company to miss on business opportunities, causing a loss of revenue.

Expenses
A poorly calculated investment in technology can lead to