The Strategic Role of Global Information Systems Essay

The Strategic Role of Global Information Systems - Essay Example Introduction The relationship between corporate strategy and information systems functions was not a central interest for the top management of organizations for some time. Information systems were primarily synonymous with corporate data processing and regarded as back-room operations to support the day-to-day operations (Ezingeard, McFadzean, and Birchal, 2007:99). However, the 80s and the 90s saw a growing realization of strategizing information systems for the organization. Interestingly, information systems have been present since the beginning of time, but the integration with information technology is a newcomer to the field. The functions of IT-based information systems have had significant impacts to organizations and people such that only a few (if any) company can afford the risk of ignoring these functions despite the fear and frustrations they evoke sometimes (Currie and Galliers, 2002:76). Some organizations regard information systems as unavoidable to remain in busines s, while others perceive the systems as a strategic opportunity that may proactively identify strategies to gain a competitive edge against competitors. Regardless of an organization’s stance, embarking of investment on information systems proves to be a non-reversible decision. Information technology has become powerful and cheap, and its use in organizations has spread at a rapid rate. Different management levels are using IT-based information systems in contrast to the earlier application at the operational level only. However, more organizations are focusing on improving efficiency and maintaining business effectiveness, as well as strategically manage organizations (Irani, Love, and Hides, 2000:23). The increasing complexity of managerial tasks translated to the complex nature of information systems required: from routine, structured support to unstructured, complex, ad hoc enquiries at the peak level of management. Information systems has the potential to change the way organizations work and the very nature of their business. In the information technology world, there has been introduction of electronic markets, where buying and selling occurs in a matter of seconds, disrupting the conventional distribution and marketing channels (Lacity and Willcocks, 2000:31). The advent of Electronic Data Interchange has not only increased transaction speed but also ensures subscribers of accuracy of information they receive from buyers and suppliers and perhaps reap cost reduction benefits using automated reordering processes. On higher strategic level, an organization may pass information to its customers or suppliers to provide or gain better service. Providing higher quality services to the customers than the competitors may result to the differentiation required to gain a competitive edge on a short term. However, continual improvement to the quality of services offered may enhance the competitiveness of an organization on a long-term basis (Magdaleno et al., 2008:305). However, the unprecedented and rapid change in information technology has profound impacts on IT-based informat