Analyzing the Influence of Strategic Information Systems Planning for Improving the Supply Chain Management Function Mehdi bagheri, Payam Paslari Department of management, branch, Islamic Azad University ,Iran.) Abstract-Today, supply chains encountered with instability in the environmental factors due to increased competition and technology changes. On the other hand, entering the information systems, Strategic Information Systems Planning (SISP) emerged to integrate the organization to such changes. This study aims to provide a model for supply chain management (SCM) using SISP process. This model prepared for improving the performance of supply chain management described by several indices. Finally, there have been provided 4 hypotheses on proposed stages with the accuracy of them tested. There are used the views of 200 superior management of information organizations through Iran discussing the sales in fiscal year, 2006 to test these hypothesis. In conclusion, the results have been analyzed and discussed based on the designed model. Keywords: Strategic Information Systems Planning (SISP), Supply Chain Management (SCM), 1 Introduction Today, the changes in the priorities of end users, world trade liberation, internet, e- commerce, increased tendency to outsourcing and even environmental issues have been discussed in studies related to supply chain management. On the other hand, global competition market and changes in the needs of customers caused organizations to deal with improving the supply chain function (amid et al, 2006). A supply chain includes a networks comprising from participants and different operational canals in and out of the organization influencing on the suitability of supply chain outputs (Teck- Yong Eng. 2006). The main objective of activities related to the supply chain is the customers’ satisfaction such that provides them with their related product with maximum quality, minimum cost and timely. In supply chain, for improving the internal processes of supply chain, members must coordinate with other chain members (Vicky Manthou et al. 2004). Figure 1 schematically indicates the supply chain. As indicated, supply chain processes are related to the linkage points of organization with peripheral area. Nowadays, an efficient supply chain is a potential way for maintaining the competitive advantages and improving the organizational performance. Thus, the competition is not between the organizations but between supply chains and this indicates that the more effective the performance of supply chain, the more improved is its efficiency (Suhong Li et al, 2004); this results in more concentration of employees on the main business activities. On the other hand, the role of information systems on organizational function changed effectively and today information systems make Recent Researches in Circuits, Systems, Communications and Computers ISBN: 978-1-61804-056-5 185
14
Embed
Analyzing the Influence of Strategic Information … the Influence of Strategic Information Systems Planning for Improving the Supply Chain Management Function Mehdi bagheri, Payam
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Analyzing the Influence of Strategic Information Systems
Planning for Improving the Supply Chain Management Function Mehdi bagheri, Payam Paslari
Department of management, branch, Islamic Azad University ,Iran.)
Abstract-Today, supply chains encountered with instability in the environmental factors due to
increased competition and technology changes. On the other hand, entering the information systems,
Strategic Information Systems Planning (SISP) emerged to integrate the organization to such changes.
This study aims to provide a model for supply chain management (SCM) using SISP process. This model
prepared for improving the performance of supply chain management described by several indices.
Finally, there have been provided 4 hypotheses on proposed stages with the accuracy of them tested.
There are used the views of 200 superior management of information organizations through Iran
discussing the sales in fiscal year, 2006 to test these hypothesis. In conclusion, the results have been
analyzed and discussed based on the designed model.
Keywords: Strategic Information Systems Planning (SISP), Supply Chain Management (SCM),
1 Introduction Today, the changes in the priorities of end
users, world trade liberation, internet, e-
commerce, increased tendency to outsourcing
and even environmental issues have been
discussed in studies related to supply chain
management. On the other hand, global
competition market and changes in the needs of
customers caused organizations to deal with
improving the supply chain function (amid et al,
2006).
A supply chain includes a networks
comprising from participants and different
operational canals in and out of the organization
influencing on the suitability of supply chain
outputs (Teck- Yong Eng. 2006).
The main objective of activities related to the
supply chain is the customers’ satisfaction such
that provides them with their related product
with maximum quality, minimum cost and
timely.
In supply chain, for improving the internal
processes of supply chain, members must
coordinate with other chain members (Vicky
Manthou et al. 2004).
Figure 1 schematically indicates the supply
chain. As indicated, supply chain processes are
related to the linkage points of organization with
peripheral area.
Nowadays, an efficient supply chain is a
potential way for maintaining the competitive
advantages and improving the organizational
performance. Thus, the competition is not
between the organizations but between supply
chains and this indicates that the more effective
the performance of supply chain, the more
improved is its efficiency (Suhong Li et al,
2004); this results in more concentration of
employees on the main business activities.
On the other hand, the role of information
systems on organizational function changed
effectively and today information systems make
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 185
value for organization (Choon Seong Leem,
Bumyongoh, 2001).
Information systems play role in integration
and cooperation between different parts of
supply chain and so the performance of this
system directly influence on the performance of
a supply chain. Studies indicate that most
successful organizations use e-commerce to
improve their customer services and information
quality.
Strategic planning of information systems is
defined as a process for determining a basket of
PC programs protecting the organization’s
business. In today’s competitive market and
complicated economy, SISP is discussed as a
vital factor for most organizations and it is not
surprising when IT and IS management rank it
as the highest managerial choice (Henry E. New
Jirk, et al, 2005).
According to mentioned subjects and
influence of SISP on organizational performance
as well as interaction of organizational
performance on the performance of supply
chain, this study aims to examine the relation
between above mentioned subjects and provide a
model for effectively planning the supply chain.
2 Literature Review 2-1- Role of Information Systems (IS) in
Supply Chain
According to the studies about the role of
information systems in supply chains, existing
literatures grouped into six main categories
(table 1) (A. Gunasekaran, E. W.T. Ngai).
• SISP in supply Chain
Strategic planning for IT-based supply chain
is a main and fundamental role of organizations.
This indeed is a long term plan for the
performance of information systems in supply
chain system.
• Infrastructure of IT in Supply Chain
Lacking enough knowledge about
infrastructure or IT required for themselves,
organization may fail when modeling their
business. Infrastructure includes software,
hardware and type of system needed for IT in
the chain.
• IT and Knowledge Management in
Supply Chain
When we have activity in a IT-based world,
knowledge employees must participate in
activities coming with value added. IT and
Knowledge management needs a systematic
approach or framework for training the
employees for executing the team work and
innovation. IT management needs planning,
development and launching the decisions
regarding to the business processes and
organizational objectives.
• Launching the IT in Supply Chain
This requires the approach of project
management and including formation of teams
for planning and launching the IT projects. It
must be mentioned that for launching the IT, the
support of superior management is as important
as the technical and financial support.
• Virtual Organizations and Supply Chain
Virtual organizations formed on the basis of
outsourcing concept. Such organizations seeking
for competitive advantage aiming to being
flexible and remaining responsive to the
requirements of market change. The relation
between virtual organization and internet results
in pay more attention to the needs of superior
management by supply chain.
The object of this study is SISP in supply
chain. Therefore, here there are discussed some
literature in details.
2-2- SISP in Supply Chain
Today organization focus on strategic
planning aiming to develop the plans and long
term changes in order for improving their
competitive situation. SISP must support long
term objective and goals of supper chain based
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 186
on the flexibility and responsiveness to the
necessities of market changes. For example, IT
will facilitate the organization and cooperation
in the chain by accessing to correct and timely
information. Cerpa & Verner (1998) studied on
the SISP in great organizations in Australia.
They analyzed SISP by different factors such as
ones influencing on SISP, the effect of IS
maturation on SISP and key factors in SISP.
Table 1- grouping the existing papers about role of information systems in supply chain (A.
Gunasekaran, E.W.T)
Group References
SISP in supply chain
infrastructure of IT in supply chain
e-commerce and supply chain
IT and knowledge management in supply chain
Launching IT in supply chain
Virtual organizations and supply chain
IT must result in integration between
commercial partners and can help making a
virtual organization. Turowski (2002) states that
“integration isn’t made easily made but needs
changes in the processes and renovation of some
old structures. SISP is one of the subjects always
considers process reengineering among all
beneficiaries, for this reason it can provide a
proper bed for launching the supply chain
management in the organizations. Determining
the strategic dimensions of influence of IT on
supply chain management is an important issue
always considered by managers. In SISP, this
has been indicated in prioritizing the activities
and projects (Talluri, 2000).
Today, one can search for the effect of IT in
information systems. MRPs generation is one of
the prominent examples of great effects of
making coordination in supply chain. By
reducing the negative points of manufacturers
and suppliers, these systems could provide the
organizations with competitive advantage and
this is what SISP is seeking for (Zimmerman,
2000). Thus, the thought and approach of supply
chain management have always interacted to
each other and each one played role for the
development of another one.
To approve the effect of ISS on supply chain
management, it is necessary to consider the role
of IT strategy on supply chain. Today price
plays important role for continuance of presence
globally. Mainly, the supply chain management
made because one can remove the activities
without value added and it causes the
organizations to supply their products by low
prices. IT in all stages could both reduce the cost
of processes and help better decision making.
CAD&CAM systems and electronic supply
systems and web-based systems are accounted
as such effects.
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 187
The role of SISP in supply chain
management has been considered of different
perspectives. For example, two Greece
researchers believe that for properly using the
concepts of SISP in supply chain, it is better to
use Fuzzy recognition maps instead of old tools
(Karadaras& karakos, 1999). Using such tools
can make creativity and synergism in the
organization and also prevents defensive
movements in the future. It must be always
stressed that such tools must be easily used and
accepted by superior management of the
organization.
Although there are so many studies in the
field of interactions of SISP and SCM, but there
are no enough information about the effects of
SISP on SCM. The planning part plays
important role in SCM. But there is mostly paid
attention to the outputs with less attention to
suitable factors to planning. For this reason, this