The Research area of information systems strategy in small and medium sized businesses is intriguing but surprisingly under researched. Small and medium sized businesses are a significant part of a country’s economy therefore it is important for researchers and decision makers of small enterprises to initiate and establish a more appropriate understanding of information systems strategy, which can be an important contributing factor in the growth of small and medium sized businesses.
This paper reviews the existing literature available on approaches towards information systems strategy in small and medium sized businesses. The paper considers information as a resource which is strategic in nature. It asserts that Information systems Strategy proposals in small and medium sized businesses should give as much importance to issues regarding organizational changes as implementation of information systems.
Table of Contents
1. Introduction
2. Significance of Researching the Role of Information Systems in SME’s
2.1 Defining Small and Medium Sized Businesses
2.2 Defining Information Systems
2.3 Information Systems Investment in Small and Medium Sized Businesses
3. Information Systems Strategy in Small and Medium Sized Businesses
3.1 Character of Information Systems Strategy
3.2 Information Systems Strategy in Small and Medium Sized Businesses
3.3 Analysing Contemporary Tools
4. Analysing Multi-Paradigm Approach to Information Systems Strategy in SME’s
5. Analysis of a Refined Framework for Information Systems Strategy in SME’s
5.1 Business Context
5.2 Business Process
5.3 Strategic Content
6. Conclusion
Research Objectives and Core Themes
The primary objective of this paper is to review existing literature on information systems (IS) strategy within small and medium-sized enterprises (SMEs) to develop a more profound understanding of the strategic potential of information as a resource. The research addresses the gap in under-researched areas of SME management and explores how integrating organizational change with information systems implementation can foster growth and competitive advantage.
- The strategic role of information as a resource for growth and competitive advantage in SMEs.
- Challenges and unique attributes that differentiate SME strategy from larger corporate structures.
- Methodological frameworks for assessing and planning information systems strategy in resource-constrained environments.
- The importance of aligning business processes and organizational culture with information technology adoption.
- Analysis of multi-paradigm approaches to understanding and implementing IS strategies in small businesses.
Excerpt from the Book
3.1 Character of Information Systems Strategy
An information systems strategy explains that an information system required by a business has to be competitive (Earl 1996, Galliers 1991). This can vary from systems that concentrate inwards for the purpose of enhancing usefulness and productivity to those systems that are outward focused concentrating on competitiveness (Earl 1996, Sinclair 1986).
Contemporary literature stresses that an information system strategy must be an intrinsic component of business plans (Earl 1996, Galliers 1991). If information systems strategy is not an important component of business planning than there is a strong possibility that strategic information systems development will be a slow gradual process making little contribution to the strategic vision of the business which will not help the business in improving its organizational adaptability to react to changes in the market (Avison, 1998). Information systems strategy should be changed or adjusted accordingly with changes in the business environment (Earl, 1996).
In order to survive and compete in a market an information systems strategy not only has to incorporate and embrace the systems that the business needs, but also those who present a medium for competitive enhancement along the industry value chain (Porter and Miller, 1985) Through information exchange connections with suppliers and customers are developed and enhanced. Kanter (1994) reasons that many businesses may look for mutual advantage and information systems share and exchange is an integral component of the openness that is required for the purpose of developing such mutual connections. But quick changes in technology make it impractical for organizations striving and aiming to acquire competitive gains by introducing information technology (Feeny and Ives, 1990). Feeny and Ives reasons that organizations should not build their strategy for competition focusing on information technology if they fear that there are chances of easy duplication of technology.
Summary of Chapters
1. Introduction: Provides an overview of the significance of information systems strategies and highlights the existing research gap concerning SMEs.
2. Significance of Researching the Role of Information Systems in SME’s: Discusses the necessity of viewing information as a strategic resource and outlines the specific challenges SMEs face regarding investment and implementation.
3. Information Systems Strategy in Small and Medium Sized Businesses: Examines the core characteristics of IS strategy and analyzes tools utilized for strategic planning within these organizations.
4. Analysing Multi-Paradigm Approach to Information Systems Strategy in SME’s: Explores the benefits of adopting a flexible, multi-paradigm methodology to better align technology with informal business strategies.
5. Analysis of a Refined Framework for Information Systems Strategy in SME’s: Proposes and details a three-part framework focusing on business context, business process, and strategic content for implementing IS.
6. Conclusion: Summarizes the findings and emphasizes the importance of external analysis and organizational alignment for successful IS integration in SMEs.
Keywords
Information Systems, Small and Medium sized Businesses, Information Systems Strategy, Competitive Advantage, Organizational Change, Strategic Planning, Business Process, Information Technology, Resource Constraints, Management, Decision Support, Value Chain, SME Growth, Strategic Management, Information Flows
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the under-researched area of information systems strategy within small and medium-sized enterprises, aiming to understand how SMEs can utilize information technology as a strategic resource.
What are the primary themes discussed in the work?
Key themes include the alignment of business strategy with information systems, the impact of organizational culture on technology adoption, and the necessity of managing both operational and strategic information flows.
What is the primary research goal?
The goal is to provide a comprehensive review of existing literature and propose a refined framework that helps SMEs develop functional and thorough information systems strategies to support growth.
Which scientific methodologies are employed?
The paper utilizes a literature-based synthesis and adopts a multi-paradigm approach, reflecting on both positivist and interpretive research traditions to analyze IS strategies.
What topics are covered in the main body?
The main body covers the definition of SMEs and information systems, an analysis of current tools for strategic planning, and a detailed framework dividing strategy into business context, business processes, and strategic content.
Which keywords best characterize this research?
Essential keywords include Information Systems, SME strategy, competitive advantage, resource constraints, and organizational alignment.
Why are SMEs often hesitant to invest in information systems?
SMEs often lack the capital and specialized staff needed for large-scale IT projects and are frequently focused on short-term operational survival rather than long-term strategic technological gains.
What role does the owner play in SME information strategy?
The owner is the primary decision-maker, often acting as a "potent force" behind investment, though their limited knowledge can sometimes act as a barrier to effective strategic planning.
What is the "One size fits all" risk mentioned in the conclusion?
It refers to the danger of assuming that strategic frameworks designed for large corporations can be applied directly to SMEs without accounting for their unique size, agility, and resource limitations.
How does the proposed framework aid SMEs?
By breaking down IS strategy into manageable phases like "Business Context" and "Business Process," the framework helps owners link technical investments directly to organizational goals and competitive requirements.
- Quote paper
- Ali Mirza (Author), 2014, Approaches to Information Systems Strategy in small and medium sized businesses. An Analysis, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/335780
