UNIVERSITI PUTRA MALAYSIA

AN INVESTIGATION ON THE RELATIONSHIP BETWEEN STRATEGIC

INFORMATION SYSTEMS AND BUSINESS STRATEGIES IN MALAYSIAN ORGANIZATIONS

SAADIATUL IBRAHIM

GSM 1999 1

AN INVESTIGATION ON THE RELATIONSHIP BETWEEN STRATEGIC

INFORMATION SYSTEMS AND BUSINESS STRATEGIES IN

MALAYSIAN ORGANIZATIONS

By

SAADIATULIBRAHIM

Thesis Submitted in Partial Fulfilment of The Requirements For The Degree of Master of Science in the

Malaysian Graduate School of Management Universiti Putra Malaysia

January 1999

ACKNOWLEDGEMENTS

I would like to express my sincere gratitude and appreciation to the Chairman of the

Supervisory Committee, Associate Professor Dr. Md. Zabid Abdul Rashid, Dean of

Malaysian Graduate School of Management. Special thanks are also due to Associate

Professor Dr. Samsinar Md Sidin and Dr. Nurol' Ain Mustapha as committee

members who generated immense intellectual impetus in the supervision of the

study. Their patience, guidance and constructive criticism throughout the preparation

of this study are deeply appreciated.

My special thanks go to my colleagues and to all my friends who have contributed in

one way or another towards the completion of my study. Records of thanks are also

extended to all the firms for their assistance to complete the questionnaires.

Last but not least, it is a pleasure to take this opportunity to acknowledge the support

and encourage from my loving husband, Tun, my mother, Khatijah, my parent in

law, brothers and sisters for their encouragement and support throughout my study.

11

TABLE OF CONTENTS

Page

Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

List of Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . , v

List of Figures . . . . .. . ... . . ... .... .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vll

List of Abbreviations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vin

Abstract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Abstrak. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Xl

CHAPTER I

II

III

INTRODUCTION Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Strategic Information System. . . . . . . . . . . . . . . . . . . . . . . .. 3 Business Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Problem Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Objectives of Study ........... : . . . . . . . . . . . . . . . . . . . . . . . . . . ... 13 Theoretical Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14 Hypotheses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . ... ..... . .. 20 The Importance of Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 23

LITERATURE REVIEW Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Strategic Information System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Information System . . . . , . . . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . 27 Accounting Information System ... . . . . . . .. . .. . . . ... " 28 Financial Information System. . . . . . . . . . . . . . . . . . . . . . . . . 32 Management Information System . . . . . . . . . . . . . . . . . . . . . 35 Marketing Information System. . . . . . . . . . . . . . . . . . . .... . 37 General Information System. . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Models of Business Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Relationship Between Business Strategies and Strategic Information System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

METHODOLOGY Source of Information and Data. . . .... . .. . . . . . . . . . . . . . . . . .. 58

Primary Data. . . . . . . . . . . . . . . . . . . . ... . ... . .. . ...... . . .. . . . . 58

111

Research Design.............................................. 58 Measurement of Variables................................... 59 Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . 60 Sampling....................................................... 62

Study Population . . . . . . . . . '" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Sample Size......... . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Data Analysis... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Method of Analysis. .................... ...... . . . . . . . . . . . 64 Sample Distribution and Response Rate........... ... 67 Respondent Background...... . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Company Background................................... 71

Reliability and Validity... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Reliability Test............................................ 73 Validity Test.......... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

IV RESULTS AND DATA ANALYSIS

v

The Strategic Information System.......................... 87 The Business Strategies...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 The Relationship Between Business Strategies and Strategic Information Systems......... . . . . . . . . . . . . . . . . . . . . . 94

IMPLICATIONS AND CONCLUSION Implications.. ......... ........................................ 105 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Limitation of Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

BIBLIOGRAPHY 116

APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 A Cover Letter ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 B QuestIonnaIre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

VITA

IV

Table

Table 1

Table 2

Table 3

Table 4

Table 5

Table 6

Table 7

Table 8

Table 9

Table 1 0

Table 1 1

Table 12

Table 1 3

Table 14

Table 1 5

Table 1 6

Title Page

Sample Distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Response Rate................................................ . . . . 68

Respondent Profile. .............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Companies Profile..................................... .. . ....... 72

Reliability Analysis on Strategic Information System..... 75

Reliability Analysis on Business Strategies................. 75

Means, Standard Deviations and Intercorrelations of 77 Accounting Information System Strategy Variables ...... ..

Means, Standard Deviations and Intercorrelations of 79 Marketing Information System Strategy Variables ........ .

Means, Standard Deviations and Intercorrelations of 79 Financial Information System Strategy Variables .......... .

Means, Standard Deviations and Intercorrelations of 8 1 Management Information System Strategy Variables .....

Means, Standard Deviations and Intercorrelations of 8 1 General Information System Strategy Variables .......... .

Means, Standard Deviations and Intercorrelations of 83 Focus Strategy Variables ...................................... .

Means, Standard Deviations and Intercorrelations of Cost 85 Leadership Strategy Variables ................................ .

Means, Standard Deviations and Intercorrelations of 85 Differentiation Strategy Variables ............................ .

Factor Analysis For Strategic Information System......... 88

Factor Analysis For Business Strategies............ .......... 93

v

Table 17

Table 1 8

Means, Standard Deviations and Intercorrelations of Strategic Information Systems and Business Strategies Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Characteristics of The Three Business Strategies Derived From Cluster Analysis ......................................... .

VI

96

97

LIST OF FIGURES

Table Title Page

Figure 1 Strategic Information System Process ...................... 6

Figure 2 The Differences Among The Three Strategies ............ 8

Figure 3 The Framework Of The Relationship Between Strategic 1 9 Information Systems and Business Strategies ............

Figure 4 Ansoff Basic Matrix .......................................... 44

Figure 5 Expansion of Ansoff Basic Matrix ......................... 45

Figure 6 Forces Driving Industry Competition ..................... 47

Figure 7 The Difference Among The Three Generic Strategies ... 5 1

Figure 8 The Model of The Strategic Information Systems and 1 08 Business Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Vll

LIST OF ABBREVIATIONS

AIS Accounting Information System

FIFO First In First Out

FIS Financial Information System

GIS General Information System

IS Information System

IT Information technology

LIFO Last In First Out

MktIS Marketing Information System

SIS Strategic Information Systems

viii

ABSTRACT

Abstract of thesis presented to the Senate of Universiti Putra Malaysia in partial fulfilment of the requirements for the degree of Master of Science.

THE RELATIONSHIP BETWEEN STRATEGIC INFORMATION SYSTEMS AND BUSINESS STRATEGIES IN MALAYSIAN ORGANIZATIONS

By

SAADIATUL IBRAHIM

January 1999

Chairman Associate Professor Md Zabid Haji Abdul Rashid, Ph.D.

Faculty Malaysian Graduate School of Management

This paper investigates the nature of business strategies and strategic

information system pursued by Malaysian firms and to examine the relationship

between the business strategies and the strategic information system used by the

firms. The study were analysed using SPSS Win ReI. 6.0 (Statistical Package for

Social Science for MS Windows Release 6.0).

The empirical results arising from survey research conducted in Malaysia

showed that most businesses appear to be competing through the cost leadership

strategy. It was found that there is a positive relationship between business strategies

and the strategic information system in Malaysian firms. For those firms who used

the accounting information system and financial information system, they perceived

that cost leadership strategy is highly important followed by differentiation strategy

and focus strategy. For those who practised the management information system and

IX

general information system in their organizations, they perceived that the cost

leadership strategy is highly important as compared to differentiation and focus

strategy. However, the finding shows that those firms that used the marketing

information system in their organizations· would not differentiate the business

strategies that they would adopt in their organizations.

Recommendations for further research are also made, which focuses on the

potential bias introduced into this type of research where only Klang Valley

managers were surveyed. This study has looked at only one model of business

strategy and there is a need to extend the analysis at other models of business

strategy.

x

ABSTRAK

Abstrak tesis yang dikemukakan kepada Senat Universiti Putra Malaysia sebagai memenuhi keperluan untuk Ijazah Master Sains.

HUBUNGKAIT DI ANTARA SISTEM MAKLUMAT STRATEGI DAN STRATEGI PERNIAGAAN DI DALAM ORGANISASI DI MALAYSIA

Oleh

SAADIATUL BINTI IBRAHIM

January 1999

Pengerusi Profesor Madya Md Zabid Haji Abdul Rashid, Ph.D.

Fakulti Pusat Pengajian Siswazah Pengurusan Malaysia

Kajian ini mengkaji tentang keadaan semulajadi strategi perniagaan dan

system maklumat strategik yang diterimapakai oleh firma-firma perniagaan di

Malaysia dan untuk menyelidik hubungkait di antara strategi perniagaan dan system

maklumat strategik yang digunakan oleh firma-firma perniagaan di Malaysia. Kajian

ini dianalisa menggunakan SPSS Win Rel. 6.0(Statistical Package for Social Science

for MS Windows Release 6.0).

Keputusan yang diperolehi dari kajian yang dijalankan ini menunjukkan

bahawa kebanyakan perniagaan kelihatannya bersaing menggunakan strategi

kepimpinan koso Hasil kajian yang diperolehi ini mendapati bahawa bahawa adanya

hubungan positif di antara strategi perniagaan dan sistem maklumat strategi yang

diadaptasikan di dalam organisasi -organisasi di Malaysia.

Firma-firma yang menggunakan strategi sistem maklumat perakaunan dan

sistem maklumat kewangan menganggap bahawa strategi kepimpinan kos adalah

xi

sangat penting, diikuti dengan strategi pembezaaan dan strategi fokus. Hasil kajian

juga menunjukkan bahawa firma-firma yang mempraktikkan sistem maklumat

pengurusan dan sistem maklumat am di dalam organisasi mereka juga menganggap

bahawa strategi kepimpinan kos adalah sangat penting berbanding dengan strategi

pembezaan dan strategi fokus. Walaubagaimanapun, hasil kajian mendapati bahawa

firma-firma yang mempraktikkan sistem maklumat pemasaran di dalam organisasi

mereka, tidak membezakan ketiga-tiga strategi tersebut.

Saranan untuk kajian akan datang juga dibuat di dalam kajian ini, yang

menfokuskan tentang ketidakseimbangan di mana kajian ini hanya melibatkan

pengurus-pengurus di Lembah Kelang dan pandangan semua pengurus-pengurus di

seluruh Malaysia tidak diambil kira.

Kajian ini hanya ,melibatkan satu model daripada strategi-strategi pengurusan

dan adalah perlu untuk melanjutkan analisis ini kepada model-model strategi

pengurusan yang lain.

xii

CHAPTERl

INTRODUCTION

This chapter covers the general issues of information

technology(IT)/ information system(IS) in relation to the business strategies

especially in Malaysian organizations. In addition, the objectives of this

study, the hypotheses and the importance of this study are also covered.

Background

In the broadest sense, an information system can be defined as a set

of procedures which collects or retrieves, processes, stores and disseminates

information to support the decision making and control processes (Gall,

1986). Information may be collected from inside the organization (such as

production volume) or from the external environment (such as estimated

market size) and may be distributed internally or externally. Most

1

2

organisations have used, in one way or another, their own information systems

to serve their organizational demands.

Formal or structured information systems rest on the existence of relatively

fixed definitions of data and procedures for collecting, storing, processing,

disseminating and using those data. In contrast, informal or unstructured information

systems rest on open definitions of goals, opportunistic methods of data collection

and virtually unlimited channels of distribution and use. As such, they are not

included in this research. The same applies to information systems that may be

formal and structural in nature but depend mainly on manual methods for their

operation.

The application of information systems in business is relatively a new

phenomenon. The scope of application is expanding rapidly in line with the growing

power and the declining price-to-capacity ratio that information systems offer (Porter

and Miller, 1985).

Information systems have assumed an increasingly strategic role in

organisations. There is a greater emphasis in recent years on organisational efficiency

and effectiveness and constant clamour for accountability. (Porter and Millar, 1985)

Originally designed to expedite the processing of paper and data in the 1960s,

information systems enlarged its functions in the 1970s and early 1980s to general

3

management support, and subsequently to customise, specific decision support tools.

Such information systems, generally referred to as Strategic Information System, are

transforming the nature of products or services, the format of production processes,

relationships with suppliers and customers, and the basis of business competition.

Strategic Information Systems

The rapid advancement of information system has emerged from the position

of a mere tool of back-office support to one that offers significant potential in

creating competitive advantages for companies (Earl, 1 989).

These competitive advantages cover not only includes drastic improvement in

product quality, lowering production costs and defining new relationships with

suppliers and customers, but also creating new markets as the timely capturing of

information on market changes (Earl, 1 989). In describing this type of computer­

based information system, a new term had been developed recently: strategic

information system(SIS).

The term "strategic information system (SIS)" was first employed by

Professor Charles Wiseman, of Columbia University, New York, in his book

Strategy and Computers: Information Systems as Competitive Weapons, published

in 1985. Strategic Information Systems was subsequently used as the title of the

4

revised edition published in 1988. According to Wiseman (1988), SIS is the

innovative use of information systems geared towards the support of an

organization's competitive strategy aimed at achieving or maintaining superiority

against business competitors".

Current approaches in the designing of a strategic information system (SIS)

are with the aim of obtaining top management awareness, identify and implement

applications that can generate competitive advantage. (Wiseman, 1988)

The concept of 'strategic information systems' has been widely accepted

with various interpretations. Other terminologies used to convey this concept include

strategic information technology, strategic information systems, planning strategic

information systems and strategic information systems planning. In addition, others

also refer it as strategic planning of information systems, information systems

strategy, information technology strategy and information management strategy.

However, the subtle variations in its meanings were not entirely clear (Reponen,

1993).

Competitive advantage may be achieved either through low costs or superior

service. Although, information technology can support both objectives, its priorities

had changed over time (Reponen, 1993). In the 1980s, a period of service orientation

the primary was on the strategic use of technology. But the increased demands for

5

PERPUSTAKAAN streamlining business operations have brought cost4m� t��¥�1A

This is true in both profit and non profit organisations.

According to Reponen ( 1993), strategic information system is essentially a

planning process in the minds of the decision makers, users and developers of the

systems. The SIS is supported with written reports and plans, but they are of

secondary importance. The way to increase understanding between different groups

in an interactive working model, which brings together different perceptions and

ideas in the organizations.

In that study , SIS was conceived as a plan for developing, implementing,

managing and operating information systems. This is shown in Figure 1. It IS a

result of an interactive working process in the organization. According to Reponen

(1983), the contents of the strategy may be different for each case. He believed that

in the strategic information system, the most important decision areas are on

strategic use of information technology, application development policy, high level

architecture, organization of the information system function and investment

planning.

Data processing professionals need guidelines from business management to

do their own work. A good strategic information system gives an overall picture of

these decision areas in an organization and helps in implementing systems.

I

6

�. Business

strategic use of IT IT I

•

Multiple • application

development Strategy

Theoretical /J participants, �

• architecture � Implementation multiple methods

Concepts • IS function • investment

planning Practical

Experience

T Figure 1 : Strategic Information System Process

Source: Strategic Information Systems - A Conceptual Analysis, Butterworth- Heinemann Ltd, 1993.

Business Strategies

According to Chandler ( 1962), strategy is the determination of the basic long-

term goals and objectives of an enterprise, and the adoption of courses of action and

the allocation of resources necessary for carrying out these goals. For

Andrews(1987), business strategy determines how a company will compete in a

given business, and position itself among its competitors.

Business strategy defines how each individual business will attempt to

achieve its mission within its chosen field of endeavour. A business strategy must

7

also be developed for the single business firm and for each unit in the multiple

business firm. It should specify how the unit will compete and what will be its

expected competitive advantage. Business strategy is essentially the same for the

single business firm and for the individual businesses in a multiple business firm

(Andrews, 1 987).

Business strategy is supported by a combination of the various functional

strategies. For many firms, marketing strategy is the centerpiece of business strategy,

with the other functional strategies playing an integral roles. In other firms,

production or research and development may dominate the business strategy. Each

business strategy must be compatible with the corporate strategy and with the

strategies of the other businesses operated by the firm.

Porter ( 1 980) in his contribution to strategic thought had proposed the

controversial notion of business generic strategies. According to him, there are three

types of business strategies : overall cost leadership, differentiation and focus.

Overall cost leadership, refers to the planned result of policies aimed at

managing away expense. It is a defense against each of the five competitive forces

respectively by enabling the firm to remain profitable when its rivals had eliminated

their margins through price competition. It also provides a defence against the

exploiting buyers' capacity to drive prices down only to the level of the next most

efficient competitors.

8

Differentiation consists of offering a product or service that is perceived

widely in the industry as being unique. It can take many forms including the design

or brand image, technology, product features, customer service, and dealer network.

By differentiation, firms can yield higher margins to offset supplier power, and

insulates the firm from rivalry by using brand loyalty in relation to customer's price

sensitivity.

The focus strategy is directed precisely at serving a particular buyer group, a

segment of the product line, or a geographic market more effectively or efficiently

than competitors who compete more widely. Consequently, it deploys one or both of

the other two generic strategies in its approach to that narrow target. Figure 2 shows

how Porter illustrates the differences among the three strategies in terms of strategic

advantage and strategic target groups.

Strategic target Strategic advantage

Uniqueness perceived by Low cost position

the customer

Industrywide Differentiation Overall cost leadership

Particular segment only Focus Focus

Figure 2 : The differences among the three strategies

9

Problem Statement

Today, senior managers question the value of IT/IS strategies, particularly as

years of late delivery, budget overruns and unrealised benefits have engendered a

very cautious approach to technology investment. Achieving tangible results in terms

of added value remains one of the major management challenges. This raised one of

the key issues on to what extent is ITIIS being an important strategy to

organizations?

Much attention focuses on the relationship between business and ITIIS

strategies and the successful translation of business requirements into operational

systems. However, many organisations still struggle to understand the true purpose

of an IT/IS strategy and the practical steps required to translate strategy into action.

A major survey by Kearney ( 1990) of IT/IS effectiveness indicated that many senior

managers are deluding themselves about their organisation's ability to use IT/IS

successfully.

ITIIS has impact on the ability of firms to execute a particular strategy. As

noted by Porter ( 1 980), a firm's strategy is its general framework for dealing with

competition. The achievement of one or more of these strategies gives the firm an

advantageous position relative to the industry forces and leads to higher profitability.

IT/ IS can contribute to a generic strategy in a variety of ways, since unlike

other technologies , ITI lS may impact all functions of a firm, from research and

development and engineering to marketing research and recordkeeping.

IS/IT enables organizations to operate in ways that would be difficult if not

impossible without it. IS/IT is a tool that can be used to support business activity.

But the choice of where to apply it, to which business activity, to what business

strategy remains to be made on commercial grounds. IS/ IT has the potential to

increase efficiency, but will offer no insights on the direction that such efficiency

should take. ITI lS offers new products, more information on company operations but

no light on where this is of value to the organization. IS/ IT can support a variety of

ways of organizing and operating a company (Rockart and Short, 1 989), but cannot

answer the question of which is best.

Business practices that impede company operations lie unrecognized and

relatively insignificant until the application of IS/IT allows such practices to flourish

at many times rate. Telephone, fax, e-mail are all devices for improving unstructured

informal communications. But where ill-thought-out unnecessary messages are being

passed around an organization, improving these facilities may simply lead to an

increase of traffic and less productive work. The use to which ISI IT is put is one of

those questions that only management can answer.

1 1

The importance of ITIIS varies widely from firm to firm. In several firms,

ITIIS is a major concern while for other firms, it is basically perceived administrative

convenience. For most firms, there is also no commonly accepted guidelines or

framework for measuring the importance of ITIIS to a business. Although a lot of

people have the feeling of the importance of IT l IS, few could explain how it could be

utilised or even articulate the importance ofITIlS in the future.

In order to utilise IT l IS as a competitive weapon, leaders or organisations

must understand how ITIIS has an impact on the competitive environment and

strategy of the businesses. A good understanding will enable them to direct the ITIIS

resources at hand to the firm's most important targets and hence, reap maximum

value from its utilisation. Leaders have to understand and foresee the impact of ITIIS

at the firm, industry and strategy level (Parsons, 1983).

ITIIS has a very significant role to play in business today. Among the

important role of ITIIS are creating new products and markets that were previously

not available and increased the entry barriers by increasing the market share and

discouraging entry of new competitors . Other than that, it also decrease the

bargaining power of buyers and suppliers and changing the structure of the industry .

The issue here is, whether by looking at this relationship, Malaysian

organisations will be far ahead from their competitors or Malaysian organisations

will have the competitive advantage compared to their competitors.

1 2

The essential of this study i s to obtain more understanding of the business

strategies and strategic information systems and the relationship between those two;

and the environment in which it operates, so that opportunities to make significant

contributions are identified. In this case, a very close working relationship must be

established between the business strategies and strategic information system

planners, in which the true nature of the business needs are investigated, and the

necessary initiatives defined and described, at least at a high level. The impact of

these will have on, the business can then be determined, and business responses

formulated. Strategic information systems responses are then determined as an

inherent part of the business responses.