Strategic Information SystemAnd

Guidelines For Strategic Control

Presented by :Megha Pareek

MBA 3 semester

• Strategic information systemEnterprise resource planning

(ERP)Radio frequency identification

(RDIF)Divisional and functional

support • Guidelines for strategic control

Contents

• A computer system used by organizations to examine market & competitor information to help them plan how to make their business more successful

• SIS is a computer system that implements business strategies

• Systems where operational management people and Information Services people have brainstormed together over business problems, and have realized that a new competitive thrust is possible when computer methods are applied in a new way.

Strategic Information System

• SIS helps businesses and organizations categorize, store, process and transfer the information they create and receive.

• It also offers tools for helping companies apply metrics and analytical tools to their information repositories, allowing them to recognize opportunities for growth and pinpoint ways to improve operational efficiency.

• The ideas came from business operational people, and Information Services supplied the technological capabilities to realize profitable results.

• ERP unites all of a company’s major business activities from order processing to production within a single family of software modules.

• The system provides instant access to critical information to everyone in the organization from the CEO to the factory floor worker.

• It is the software to use a common information system throughout a company’s many operations

Enterprise Resource Planning (ERP)

Why ERP Fails ??? • It is not suitable for every company • Extremely complicated and demands a high level of

standardization• Requires specialized training • Requires implementation support • Companies having difficulty & installing ERP are :-

Apple , whirlpool , hershey foods , stanley works .

• RFID is the wireless use of electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects.

• The tags contain electronically stored information.• Unlike a barcode, the tag does not necessarily need

to be within line of sight of the reader.• In 2014, the world RFID market is worth US$8.89

billion, and the market value is expected to rise to US$27.31 billion by 2024.

Radio Frequency Identification (RFID)

Uses• The RFID tag can be affixed to an object and used to

track and manage inventory, assets, people, etc. For example, it can be affixed to cars, computer equipment, books, mobile phones, etc.

• RFID can be used in a variety of applications , such as: Electronic Lock with RFID Card System, ANSI Electronic key for RFID based lock system Tracking of goods Tracking of persons and animals Airport baggage tracking logistics

• RFID provides a way for organizations to identify and manage tools and equipment (asset tracking) , without manual data entry.

• Manufacturing and Processing– Inventory and production process monitoring– Warehouse order fulfillment

• Supply Chain Management– Inventory tracking systems– Logistics management

• Retail– Inventory control and customer insight– Auto checkout with reverse logistics

• Security– Access control– Counterfeiting and Theft control/prevention

• Location Tracking– Traffic movement control and parking management– Wildlife/Livestock monitoring and tracking

• Advertising• Promotion tracking• Transportation and logistics• Public transport• Infrastructure management and protection• Passports• Transportation payments• Institutions [hospitals and healthcare , Museums , Schools and universities ]• Sports

1. Fashion: Smart Fitting Rooms2. Amusement Parks: No-swipe Ticket Passes3. CASINOS: Robbery-Proof Chips4. Sports: Loss-resistant Golf Balls\5. Guns: Safety Products6. Car Rental: No-waiting Vehicle Returns

6 Unexpected & Awesome Use of RFID

RFID Problems Technical problems• Problems with RFID Standards• RFID systems can be easily disrupted• RFID Reader Collision• RFID Tag Collision Security, privacy and ethics problems • The contents of an RFID tag can be read after the item leaves the

supply chain• RFID tags are difficult to remove• RFID tags can be read without your knowledge• RFID tags can be read a greater distances with a high-gain antenna• RFID tags with unique serial numbers could be linked to an

individual credit card number

Divisional & Functional Support• At the divisional or SBU level of a corporation , the

information System should ne used to support , reinforce , or enlarge its business level strategy through its decision support system.

• An SBU pursuing a strategy of overall cost leadership could use its information system to reduce cost by improving its resources like machinery or inventory

• Another , SBU in contrast might want to pursue a differentiation strategy , could use its information system to add uniqueness to the product or service & contribute to quality , service or image through the functional areas. ( eg. FedEx )

• Strategic control is a term used to describe the process used by organizations to control the formation and execution of strategic plans

• In designing a control system , top management should remember that controls should follow strategy.

• Strategic control focused on **the achievement of future goals**, rather than the evaluation of past performance.

Guidelines For Strategic Control

• The following guidelines are recommended : Control should involve only the minimum amount

of information . Too many controls can create confusion . Follow 80/20 rule : monitor those 20% of factor

which determine. 80% of result.

Control should be timely so that corrective action can be taken before it is too late.

Control should monitor only meaningful activities .

Long term & short term controls should be used.Control should aim at pinpointing exceptions. Only

those activities or result that fall outside a predetermined tolerance range should be call for action.

Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards.