strategic information system & guidelines for strategic control

1. System
And
Guidelines For Strategic Control

2. • Strategic information system
Enterprise resource planning
(ERP)
Radio frequency identification
(RDIF)
Divisional and functional
support
• Guidelines for strategic control

3. • A ​computer ​system used by organizations to
examine market & competitor information to help
them plan how to make their business more
successful
• SIS is a computer system that implements business
strategies
• Systems where operational management people
and Information Services people have brainstormed
together over business problems, and have realized
that a new competitive thrust is possible when
computer methods are applied in a new way.

4. • SIS helps businesses and organizations categorize,
store, process and transfer the information they
create and receive.
• It also offers tools for helping companies apply
metrics and analytical tools to their information
repositories, allowing them to recognize
opportunities for growth and pinpoint ways to
improve operational efficiency.
• The ideas came from business operational people,
and Information Services supplied the technological
capabilities to realize profitable results.

5. • ERP unites all of a company’s major business
activities from order processing to production
within a single family of software modules.
• The system provides instant access to critical
information to everyone in the organization from
the CEO to the factory floor worker.
• It is the software to use a common information
system throughout a company’s many operations

7. • It is not suitable for every company
• Extremely complicated and demands a high level of
standardization
• Requires specialized training
• Requires implementation support
• Companies having difficulty & installing ERP are :-
Apple , whirlpool , hershey foods , stanley works .

8. • RFID is the wireless use of electromagnetic fields to
transfer data, for the purposes of automatically
identifying and tracking tags attached to objects.
• The tags contain electronically stored information.
• Unlike a barcode, the tag does not necessarily need
to be within line of sight of the reader.
• In 2014, the world RFID market is worth US$8.89
billion, and the market value is expected to rise to
US$27.31 billion by 2024.

9. • The RFID tag can be affixed to an object and used to
track and manage inventory, assets, people, etc. For
example, it can be affixed to cars, computer
equipment, books, mobile phones, etc.
• RFID can be used in a variety of applications , such as:
 Electronic Lock with RFID Card System, ANSI
 Electronic key for RFID based lock system
 Tracking of goods
 Tracking of persons and animals
 Airport baggage tracking logistics

10. • RFID provides a way for organizations to identify
and manage tools and equipment (asset tracking) ,
without manual data entry.
• Manufacturing and Processing
– Inventory and production process monitoring
– Warehouse order fulfillment
• Supply Chain Management
– Inventory tracking systems
– Logistics management
• Retail
– Inventory control and customer insight
– Auto checkout with reverse logistics

11. • Security
– Access control
– Counterfeiting and Theft control/prevention
• Location Tracking
– Traffic movement control and parking management
– Wildlife/Livestock monitoring and tracking
• Advertising
• Promotion tracking
• Transportation and logistics
• Public transport
• Infrastructure management and protection
• Passports
• Transportation payments
• Institutions [hospitals and healthcare , Museums ,
Schools and universities ]
• Sports

12. 1. Fashion: Smart Fitting Rooms
2. Amusement Parks: No-swipe Ticket Passes
3. CASINOS: Robbery-Proof Chips
4. Sports: Loss-resistant Golf Balls
5. Guns: Safety Products
6. Car Rental: No-waiting Vehicle Returns

13.  Technical problems
• Problems with RFID Standards
• RFID systems can be easily disrupted
• RFID Reader Collision
• RFID Tag Collision
 Security, privacy and ethics problems
• The contents of an RFID tag can be read after the item leaves the
supply chain
• RFID tags are difficult to remove
• RFID tags can be read without your knowledge
• RFID tags can be read a greater distances with a high-gain antenna
• RFID tags with unique serial numbers could be linked to an
individual credit card number

14. • At the divisional or SBU level of a corporation , the
information System should ne used to support ,
reinforce , or enlarge its business level strategy
through its decision support system.

15. • An SBU pursuing a strategy of overall cost
leadership could use its information system to
reduce cost by improving its resources like
machinery or inventory
• Another , SBU in contrast might want to pursue a
differentiation strategy , could use its information
system to add uniqueness to the product or service
& contribute to quality , service or image through
the functional areas. ( eg. FedEx )

16. • Strategic control is a term used to describe the
process used by organizations to control the
formation and execution of strategic plans
• In designing a control system , top management
should remember that controls should follow
strategy.
• Strategic control focused on **the achievement of
future goals**, rather than the evaluation of past
performance.

17. • The following guidelines are recommended :
 Control should involve only the minimum amount
of information .
Too many controls can create confusion .
Follow 80/20 rule : monitor those 20% of factor
which determine. 80% of result.
Control should be timely so that corrective action
can be taken before it is too late.
Control should monitor only meaningful activities .

18. Long term & short term controls should be used.
Control should aim at pinpointing exceptions. Only
those activities or result that fall outside a
predetermined tolerance range should be call for
action.
Emphasize the reward of meeting or exceeding
standards rather than punishment for failing to
meet standards.