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Characteristics of Strategic Information Management

SMIS | Characteristics: In this tutorial, we will learn about the various characteristics of strategic information management. By IncludeHelp Last updated : June 01, 2023

In the simple meaning of the term, the strategy is a plan designed to accomplish a goal. SMIS for any enterprise is the primary management role that lays the groundwork for the entire organization. It includes the development and implementation of the major objectives of the company by top-level management.  Strategizing and planning for various organizational activities is an important management operation. Strategic management includes the development and execution of the key objectives and actions taken on behalf of the owners by the top management of a business, based on resource consideration and an evaluation of the internal and external conditions in which the organization is competing.

Features of the Strategic Information System for Management

Followings are the main features of the Strategic Information System for Management-

• The IS strategy takes into account what knowledge is required to achieve its goals at the strategic and organizational levels of an organization.
• It must be in a position to provide operating productivity, improved benefit, etc.
• It involves interconnecting the operations of an entity that acquires process data and ultimately provides information.
• This style of approach emphasizes what knowledge is required to achieve business goals.
• It can be used to create new market opportunities by using knowledge tools.
• An IS plan must be capable of fulfilling an organization's (market-oriented) demand.
• It is a function-oriented

Characteristics of Strategic Management Information System (SMIS)

The key characteristics of strategic management information system (SMIS) are as follows –

1. An organized occurrence
   The strategy includes a set of action plans that are not contrary to each other because they are covered by a common theme. It's not just a great idea; it lets the idea happen as well. The strategy is a unified, systematic, and integrated action plan.
2. Goal-oriented approach
   SMIS is a goal-oriented process. The process is carried out with the aim and objective of evaluating the different elements through SWOT analysis and other methods and designs a plan or strategy that enables the organization to manoeuvre it around every hurdle and make use of its strength.
3. Involvement of top executives
   Strategic management applies to many aspects of the activities of an organization. So, it needs the participation of top management. In general, the broad consequences of its decisions and the power to approve the required resource allocations are only understood by top management.
4. Multidisciplinary approach
   The strategy includes marketing, financing, human resources, and strategy development & execution tasks. A strategy is an integrated view of its activities. It is multidisciplinary and an approach that affects all the functional fields, i.e. marketing, financial, human resources, and operations.
5. Prosperity in the long term
   If an organization has committed to a specific strategy then the strategy is related to its objectives and in a competitive way; its prosperity depends for a long time on such a strategy.
6. Multidimensional technique
   A strategy is not only about vision and ambitions, but also about how to accomplish them. It, therefore, means that, with transparent accountability and performance-related rewards, the company should possess the resources and competencies necessary for the execution of the plan as well as a strong performance.
7. Future-orientated
   Strategic management requires projections, which are expected by the executives. The focus in such decisions is on the creation of forecasts that will enable the company to choose the most promising strategic options. An organization can only thrive in a volatile world if it takes a constructive approach to change.
8. Multi-functional or multi-business ramifications
   For other aspects of the firm, strategic management has complex ramifications. In particular, they affect different strategic business units in areas related to customer mix, competitive emphasis, organizational structure, etc. Allocations or reallocations of roles and resources arising from these decisions can impact all of these areas.
9. Hierarchical methodology
   Corporate strategies come on top; these are the strategies for the business unit, and finally practical methods. The top management plans business-level strategies, individual strategic business units determine organizational strategies, and the functional strategies are determined by the functional heads.
10. Dynamic in nature
    SMIS is to build a balance between the atmosphere and the activities of the organization. As the world itself is subject to rapid change, the approach must also be dynamic to shift in step with the environment.
11. Decisions that are non-self-generative
    Although strategic management can entail making decisions, at any point in time, the company must be prepared to make strategic choices.