Book.: Management of Information Technology:

        Fourth Edition

Author.: Carroll W. Frenzel

         John C. Frenzel

Reference No.: 84348

Quote:

“Strategic information systems or SIS are information systems whose unique functions or specific applications shape an organization’s competitive strategy and provide it with competitive advantage. SIS may operate in any area of the firm, supporting administrative or operational activities.”

Chapter 2: IT’s Strategic Importance

Review:

The fact that a system has obtained or maintained competitive advantage for the owner makes it a part of the organization’s strategic information systems. Enhancing the competitive advantage distinguishes a strategic system from all others in different organizations.

Strategic Information Systems comes in unique categories. For instance, telecommunication-based transaction processing systems (TPS) are the fundamentals of airline-reservation, retail brokerage, banking systems, e-bay, etc. Another would be decision-support systems which have basis on confidential algorithms and investment banking firms for trading stocks and bonds profitably for personal accounts.

“Propriety programs help traders capture profits from small, fleeting price descrepancies in securities.” (Frenzel, C., p.38)