Strategic Management: Formulation and Implementation

Information Systems And Control

Information, along with energy and materials, is a basic resource in today's world. Thousands of business firms in many industries could no operate without the basic information concerning their customers, suppliers, inventories, and finances provided by their information systems. Virtually all organizations develop and implement some type of systems to generate this information.

Moreover, information systems play a strategic role in the success of an organization. They provide information needed for effective management decision making. Therefore, information systems can help a business improve operational efficiency, promote organizational innovation, or build strategic information resources. Thus, information systems play a major role in support of the strategic objectives of an organization. Valid and reliable information about organizational performance is critical to strategic control.

This chapter introduces basic concepts of information systems, the operations and management support roles of information systems, and the role of information systems in helping an organization achieve a strategic advantage over its competitors.