The Art of Value Creation with Information Technology Potentials in Business Planning – the Role Strategic Information Systems

Abstract

Value creation has to do with delivering products or services to clients at lower prices and as well as distinguishing the products or services from competitor in terms of improved quality, more functionalities, enhanced customer service that are clearly distinguishable from competitors’. To create effective value, entities can no longer develop a business strategy separate from IT strategy and vice versa. The fusion of business and IT strategy is increasingly one of the most dramatic developments affecting organisations today. IT strategy in business planning coincides with the role of Strategic Information Systems. ‘Strategic information systems’ is, therefore, a long term plan to combine innovative Information Technologies with up-to-date managerial skills to tap potentials in technology to cut down waste and cost to improve profitability. This article analyses the role Strategic information systems can play in realising the idea that Information technology is a potential for the creation of stakeholder value by focussing on organisations’ business processes placing the analysis in the context of Porter’s value chain. The article considers possibilities of capturing value in emerging economic environments where, due to competition, the Internet, mobile business intelligence and innovative collaboration systems and other technologies have become capabilities for achieving competitive advantage. Secondly, the paper demonstrates the technologies that organisations endeavouring to create value have striven to make it with.

Key words: Information Systems, IT, Support, Strategy, Investment, Service, Profitability, Value-chain, Value creations, Collaboration, Business Intelligence, Competitive Advantage.