Analysing the relationship between business and information system decisions

Abstract

Organisations do not know how to effectively employ information systems to their benefit because business and information system(IS) decisions are not aligned and due to a lack of understanding of the different types of IS decisions. The objectives of the study were stated as follows: • To confirm the existence of a relationship between business and information system decisions. A review of the literature supported the notion that IS decisions need to be aligned with business decisions. • To clarify the link between IS strategy and structural decisions. The study introduced a framework that suggested that to facilitate the link between business and IS decisions the respective strategy components need to be linked and that IS structural components will primarily be determined by IS strategy components. Information systems have become a strategic resource for all organisations and, not only is it perceived a very important competitive factor, but the importance will increase in the years to come. Organisations spend large amounts of money on information "':> systems. There is also the expectation that IS should CQ!ltribute_ to the achieve,£1:enμi, business goals and the overall financial performance of the company. Most senior executives believe that the amount of money invested in information systems and technology cannot be justified based on it's perceived contribution to the achievement of organisational objectives! Considerable effort was made to identify the relevant business strategy, IS strategy, and IS structural components. The business strategy components identified were selected specifically for their competitive focus. The population selected included the top companies in South Africa based on financial performance. The basis for the decision was that successful companies would link business and IS decisions and they would understand the intrinsic differences between IS strategy and structure components.