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Performing a Strategic Systems Analysis

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Performing a Strategic Systems Analysis
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Performing a Strategic Systems Analysis
Protocol
A well-defined protocol is required for a successful systems analysis. Strategic analysis of business systems looks into operations and organizational strategies which are meant to achieve a competitive advantage. Business risks that threaten the success of the strategy are also identified. During the analysis, the systems expert obtains information on risk response and makes a judgment on the current position of the business. They identify external forces which threaten sustainability as well as alternatives for appropriate strategic positioning. An analysis based on competitive advantage considers gaps between organizational processes and those of the competitor. Crucial performance measurement techniques for the systems require an evaluation. This provides evidence which inspires and motivates the organization. The analysis also entails looking into the management of processes. Management ensures those processes, monitoring, and control are aligned with strategic objectives. Effective management processes ensure proper coordination of activities.
Managerial Inquires
Managers should make specific inquiries which will allow them to identify types of systems that provide strategic advantage. They should have a clear understanding of the structure of the industry in which the firm is located. All competitive forces within the industry should be analyzed.

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Basic components of competitions and changes in the industry need to be analyzed. They need to understand how the industry is using information technology. The management should have a clear understanding of the value chain for the firm. For instance, the airline industry the value chain entails providing travel services, creating value by availing booked tickets, receivership, and inspection of goods, online marketing, and infrastructure maintenance.
The industry supply chain and consumer base are changing drastically due to the dynamic technological environment. Managers should be able to decide which practices create value for the firm. The analysis involves determining how companies use their best practices to manage business processes. Changes in industry supply chain and customer base need to be identified. The management should be able to establish benefits brought about by value webs and strategic partnerships. The analysis seeks a clarification on where information systems with add value to the existing value chain. The management based analysis identifies the level in which the business strategy is aligned with overall business strategy and goals. The management should decide whether IT is an improving business processes and activities in line with firm’s strategy. Right metrics for measuring progress should be agreed upon.
Analysis Tools
Internal analysis is best achieved through SWOT analysis. Strengths of the organizational systems like resources and skills are identified and reinforced. Weakness analysis reveals defects and limitations which prevent the achievement of the overall strategic goal. Opportunities present favorable processes and situations. Threats and risk analysis identify possible obstacles and unproductive changes or updates. An external analysis is best achieved through PEST model, a tool for investigating the macro environment. Political and legal factors shape the overall business system. Processes and practices are required to conform to the law provided while operating in a given jurisdiction. It deals with human rights, working relations, and taxes. The information sub-system is regulated by copyright and intellectual property laws. Economic factors like fluctuating exchange rates and disposable income allow the organization to make right decisions. The socio-cultural element determines the market share of the organization. It considers tastes, fashion, traditions, education, and health of the consumer. Innovations and technological trends provide a competitive advantage when assimilated into the system.

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