Strategic information system or simply SIS is specific types of information systems, which are solely developed for responding to the initiative of a business. This strategic information provides exclusive competitive advantages to any particular organization (Galliers and Leidner 2014). Moreover, it helps in delivering any service or product, which is of lower prices and it focuses on any specific segment of market. This is the most important characteristic in information technology. It helps all the organizations and the businesses in the categorization, storing, processing and transferring the confidential information that is usually created or received (Haux et al. 2013). The strategic information system even offers proper technologies for simply helping all the organizations for applying several analytical tools and metrics to the repositories of information. This in case allows them in the recognition of the opportunities of development and the ways of pinpoint for the improvement of the efficiency of the operations.
The following report outlines a brief description on the strategic information system on a popular Australian bank, known as the National Australia Bank. This report discusses about the six major segments of the strategic information system (Boonstra 2013). The segments include comparison and contrast between the issues and challenges that are faced by the planners of strategic information systems, critical evaluation of the fact that whether an information system strategy is helpful for achieving competitive advantage or not. The other segments include the approaches for development of innovative utilizations of strategic information system and the decision between outsourcing and the end user computing (Laudon and Laudon 2016). The evaluation of the statement that whether strategic information system adds value to any organization by IT or IS or not is also describes here. Moreover, the factor of good internal control in any complex business world is also discussed in the report. The description of the above discussion is given below.
National Australia Bank
National Australia Bank or NAB is one of the most popular banks in Australia and New Zealand. It is considered as a financial institution in terms of customers, earnings and market capitalisation. The ranking of this particular bank was 21 in the year 2014 and was measured by the capitalization of market (Nab.com.au. 2018). National Australia Bank was founded in the year 1982 with the name of National Commercial Banking Corporation Banking of Australia Limited. Several offices were made in Chicago, Beijing, Athens, San Francisco, Dallas, Houston, New Delhi, Kuala Lumpur, Seoul, Bangkok, Shanghai, Atlanta, Frankfurt and Taipei. However, some of the above-mentioned branches are closed in today’s world (Nab.com.au. 2018). The main Headquarters of this bank was in Melbourne, Australia. This bank was founded by the merging of two popular banks, namely, National Bank of Australia and Commercial Banking Company of Sydney. Apart from Australia and New Zealand, this bank even served to Asia. Andrew Thorburn is the CEO of the bank and Kenneth R Henry AC is the Chairman. The market shares of National Australia Bank have always been on the higher side and thus they have experienced high profit due to this. In the year 1992, the market shares of this particular bank were 26% more than all other banks (Nab.com.au. 2018). This bank is popular for its innovative organizational strategies and ideas. Enterprise Resource Planning or ERP is the best solution for their organizational strategies.
1. Comparison and Contrast between Issues and Challenges
The strategic information system has various issues and challenges within it. These challenges and issues are compared and contrasted in the following paragraphs (Arvidsson, Holmström and Lyytinen 2014). Two types of sectors, namely private and public face various such issues or challenges when they try to manage the IT/ IS strategically.
These above mentioned challenges or issues are extremely common that the strategic information systems planners face while managing the IT/ IS strategically.
The above mentioned challenges are extremely common for the public sector banks.
2. Critical Evaluation of IS Strategy
The critical evaluation of the information system strategy for the National Australia Bank is as follows:
iii) Regular Maintenance of the Systems: The daily or regular maintenance of the existing systems is another important strategy for the National Australia Bank.
3. Approaches for Developing Innovative Uses
National Australia Bank could adopt various strategies or approaches when they will be developing various innovative utilizations of strategic information system. Various approaches could be easily undertaken by this particular bank (Willcocks 2013). The seven most utilized and active approaches for the development of innovative uses of strategic information system are as follows:
iii) Communication with Issues in Strategies: All the problems and issues should be communicated properly so that there exists no loophole in the problem solving and decision making techniques (Bernus, Mertins and Schmidt 2013). Each and every employee of the organization should be given a chance for solving the problems and thus many solutions would be coming out from them. Finally, the best solution will be selected from all those ideas.
vii) Networking With Peers: The colleagues or the peers should discuss amongst each other and their networking will be bringing innovative ideas (Sun 2012). The employees, working in the bank should be given a scope so that they discuss amongst each other for the existing problems in the bank.
4. Outsourcing vs End User Computing
Outsourcing is any typical approach through which any company or organization agreements the most important functions to all the efficient and specialized providers of service, who eventually becomes proper and experiences partners in business (Ali and Green 2012). Moreover, in some of the cases, this approach of outsourcing mainly includes the employee transfer from any particular organization to the organization, where outsourcing is occurring.
EUC or the end user computing solely is referred to the systems where all the non programmers can make several working applications (Baskerville, Spagnoletti and Kim 2014). The end user computing is a collection of approaches to the computing, which point to better integration of end users into the environment of computing.
Outsourcing is considered as the best option of strategies for this typical organization, National Australia Bank. Outsourcing has several advantages. The Director of the IT/ IS should consider all the advantages while managing outsourcing in the National Australia bank (Uçaktürk and Villard 2013). The advantages that are to be considered by the Director of the bank are as follows:
iii) Reduced Overhead: The cost of the overhead for performing any specific function of back-office is tremendously high (Gholami et al. 2013). Outsourcing helps in reducing the overhead costs and thus is extremely advantageous for the bank.
vii) Develop Internal Staff: Any large project becomes successful if all the staffs and employees work properly. For this particular purpose, the internal staffs should be developed properly. Outsourcing is responsible for the development of internal staffs or employees. Various skills can easily come out from this particular development.
iii) Location of offices and factories
iii) Segmentation of Market: Market segmentation is the most important factor for any business. This is the most important strategy for any marketing strategy. This segmentation groups the customers of the business into certain segments with similar requirement sets (Pearlson, Saunders and Galletta 2016). The National Australia Bank should segment their departments, lines, processes and operations into proper segments. This strategic information adds business value to the IT/ IS strategies.
6. Critical Discussion on Good Internal Control
Good internal control is the most important factor for any organization. The procedures of control are performed by all the individuals present in management level for producing good internal control for all organizations (Lin and Wang 2012). The procedures of control comprise of all the controls of entity level and even activity level. For the National Australia Bank, the designing of the procedures of control must aim initially on the entity level, which is the top-down approach since the controls in activity level can be ineffective for the lack of duty segregation (Galliers and Leidner 2014). The controls of entity level are the main controls for any bank and even are the most efficient for the prevention of frauds or errors from taking place and also going undetected.
Conclusion
Therefore, from the above discussion it can be concluded that, strategic information system is the type of information system that helps in the extraction and usage of information system. The strategies are the most important part of any organizations. If the strategies of an organization are not outstanding, it is evident that the organization will not meet its organizational goals and objectives. The strategies of organization strategy are the summation of all the activities that an organization is intended in taking for the achievement of any long-term objectives. When all the activities are taken together, the entire strategic plan of the organization is created. Every strategic plan requires a minimum of one year for completion. Each and every level of management of the organization is needed to get involved with it. The main advantages of strategic information system include easy decision-making, data mining capabilities and achieving organizational goals. Enterprise resource planning is the best solution for any strategy planning in an organization. ERP is the integration of all processes of business in any particular organization. It helps in streamlining the processes of the company and even the collection, management, storing and interpretation of data is done by utilizing Enterprise Resource Planning. The above report provides a brief description about the one of the most popular banks in Australia, known as the National Australia Bank. This bank is famous for its innovative strategies and ideas and how this bank has achieved success in extremely short span of time in comparison to other Australian banks. This report has described about the challenges and problems that are usually faced by the strategic information planners. There are several such challenges. The critical evaluation of the fact that whether an information strategy can help in the achievement of the organizational goals and objectives are also mentioned here. The third part of the report has described about the proper approaches for the development of innovative utilizations. The strategic options between outsourcing or end user computing are also discussed here. Critical discussion on good internal control is done in this particular report.
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