Strategic Management of Information Systems: Value, Challenges, and Opportunities

Introduction

IS performs a significant task in implementing the strategic objectives of contemporary business corporations (Avgerou and Walsham, 2017). This report seeks to critically assess the main aspects of IS in the present world enterprises in terms of their value, issues and prospects concerning strategic management. The report analyses system hardware and software, data and database, system network, procedures, and people. Examples from daily life will be used to explain every component and show the difference between perception and reality.

System Hardware

Strategic implication

The strategic management of hardware is crucial, as it forms the basic foundation of operations and is fundamental to business growth. High-performance servers and workstations are widely used in contemporary hardware not only to enhance the performance and accuracy of the results but also to contribute to various business processes (Pearlson et al. 2024).

Potential risk

The strategic management is not without its challenges. Hardware failures can lead to downtime and data loss, harming an organization's health.

Example

For example, the attractiveness of Amazon Web Service (AWS) speaks volumes about the specificity of investing in servers and new technologies. AWS obtains cutting-edge server technology, which offers it the opportunity to extend and be reliable for different companies with various demands. Such a strategic investment in hardware serves every one of AWS's vast and diverse client base and, at the same time, provides AWS a competitive edge over its rivals in the cloud services market space.

System Software

Strategic role

Operating systems, middleware and application software are very important in running the hardware and the business processes. They enable users to interface with hardware and help in numerous business processes, constituting the framework of an organization's IS. The economic consequences of reliably effective business software systems are practically monumental. Appropriate software adds value since it increases efficiency and ensures the business processes adopted in an organization are efficient.

Potential vulnerabilities

There can be possibilities of threat to information security, whereas software systems have certain risks involved. Striking software errors and weak spots may become the target of cybercriminals, which results in data leakage and other threats to business (Vermesan and Friess, 2022). Also, the integration between the various software systems may not be efficient, hence displacing productivity and causing downtime.

Example

For instance, Microsoft Azure services use advanced operating systems and middleware to give customers reliable cloud services. In this way, for instance, Azure continually enhances the kinds of its software and closes down all the prominent vulnerabilities to ensure efficient safety for the customer. This dedication to software quality and protection enables Azure to guarantee the maximal performance of offered services,

Data and Databases

Effective role

Data and databases have become one of critical resources in the management of an organization and the basis for creating a competitive advantage. This is why databases are needed to store, manage and secure this vital information. When it comes to data, one has to consider several critical things (McIntyre and Srinivasan, 2017). Initially, the increase in big data means that appropriate methods of storing and analyzing data must be implemented. Secondly, data analytics is a crucial tool for managing and utilizing data to improve strategic decisions within a business. Finally, data protection is an essential feature because the security of data from hacking and other forms of unauthorized access is sacrosanct.

Example

One good example of Big data and strategic use of data is Netflix; it uses data and modern analytical tools such as big data to offer users suitable movies and television shows. In addition to catering to its users' needs, pattern analysis of the programs and series to be viewed helps Netflix sustain its competitive advantage in the streaming business. This is how the strategic management of data as a resource also aims to demonstrate the potential of enterprise development and innovation.

Networks

Strategic importance

Networks play a critical role in linking different parts of an Information System (IS) so that they can exchange information. They are critical to adopting Cloud technologies and supporting remote working environments. Nonetheless, the identified strategy for maintaining network integrity has several difficulties. Security risks are a severe concern (Beynon-Davies, 2019).

Challenges

Cyberspace contains numerous dangers that may disrupt the stability of the network and complete confidentiality of the information. Also, maintaining effective communication in a distributed work arrangement may be difficult, which calls for well-established networks and constant supervision.

Example

Cisco Systems gives the right example of the rational and intelligent application of applied network technologies to secure and optimize connectivity for businesses. Thus, cyber security and cloud integration help Cisco achieve high network performance in a volatile business context. Such commitment to secure and reliable networking makes it possible for businesses to flow and function with little or no interferences thereby attributing the high importance of networks in today's organizations.

Procedures
Strategic alignment

Organizational routines are essential to maintaining the proper functioning of the IS components and the organization's strategic plans. Procedures are the set pattern of operations that must be followed to reduce waste and improve a system.

Potential inefficiency

Thus, weaknesses include outdated procedures that cause inefficient system performance and lack of standardization, resulting in work inconsistency and errors (Newman, 2018). Thus, to resolve these problems, the procedures must be updated frequently according to the existing technology and business alterations to restore and enhance the system's performance and align it with the organization.

Example

An apt example of the procedural alignment can be seen in the application of Just-In-Time (JIT) system used by Toyota. Thus, by constantly improving their activities, Toyota secures a very efficient and flexible response from the firm.

People
Role of individual, challenges and opportunities

The roles of individuals in an Information System (IS) are evolving, with IT specialists managing complex systems and end-users leveraging technology to enhance productivity. This role makes the digital transformation a double-edged sword since it contains the following. Lack of competencies with new technologies affects the efficient usage of systems and organizational culture can reduce the pace of transformation (Kavanagh and Johnson, 2017). However, it is possible to indicate that further possibilities exist to minimize these issues. In particular, training and development can help ensure the skills that would eliminate the gaps between the present knowledge and the knowledge needed by an employee. Involving employees in change means boosting the organization's ability to create new ideas and solutions and being more ready to change.

Example

A prominent example of managing these shifting functions is Google, which heavily focuses on the talent's training & creativity. Thus, Google ensures that IS is applied effectively and sustainably supporting workflows by promoting people's learning and adaptability organizational culture. This focus on employee training and improvement emphasizes the need to respond to threats and opportunities associated with the changing roles of people in an IS.

Conclusion

The knowledge of IS components' strategic value, challenges, and opportunities is necessary for today's firms. Hardware, software, data, network, procedures and people can offer a competitive edge if well managed in an organization. The components of IS reviewed showed that organizations should periodically review and reinvent their elements in the volatile business space.

Recommendations

• Acquire good and efficient hardware devices and software to improve the operation and security of the firm.

• Optimise big data and analytics for tactical planning.

• Stabilizing protection against cyber threats is paramount for network security. This proactive approach will instil security and confidence in your organization's operations.

• Please make it a habit to constantly update the procedures, especially in line with technological changes.

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