A strategic information system (SIS) is a

computer system A computer is a machine that can be programmed to automatically carry out sequences of arithmetic or logical operations (''computation''). Modern digital electronic computers can perform generic sets of operations known as ''programs'', wh ...

used by organizations to analyze market and

competitor Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individ ...

information, helping them plan and make their business more successful. It shapes the

corporate strategy In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of Resource management, resources ...

of an

organization An organization or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences) is an legal entity, entity—such as ...

by providing a connection between the organization's demands and the latest information technology. This connection helps the organization adapt to the continuous changes in the corporate environment; thereby gaining a competitive advantage

Importance of Strategic Information Systems

SIS supports decision-making by providing valuable insights to executives and

managers Management (or managing) is the administration of organizations, whether businesses, nonprofit organizations, or a government bodies through business administration, nonprofit management, or the political science sub-field of public administr ...

. By integrating data from multiple internal and external sources, SIS provides a comprehensive view of an organization's performance and

market trends A market trend is a perceived tendency of the financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time- ...

. SIS can give a business an advantage over its competitors by offering insightful data. It also helps in identifying opportunities and risks. SIS aids in achieving a company's long-term goals and objectives.

Types of Strategic Information Systems

* Cost leadership strategy: Helps a company reach the lowest costs in the industry through business process engineering, reducing costs from suppliers, and reducing costs to customers. * Differentiation strategy: Provides unique products or services and offering more value to customers than competitors. * Focus strategy: Helps companies focus on specific products or services within the organization. * Innovation strategy: Provides products or services with the latest innovations. * Alliance strategy: Creates cooperative relationships that benefit both suppliers and other companies, even with competitors. * Growth strategy: Helps companies develop and diversify their market. * Quality strategy: Helps improve the quality of products and services.

References

{{Reflist Information systems