Information system and organization influence one another. Information system is built managers to serve the interest of the business organization and at the same time organization should be open to the influences of information systems to benefit from new technologies.
A business form has specific strategy plans for specific periods of time to achieve some specific goals. Information system of the organization is that integrated computerized tool which provides right information at the right time in a span of a click. Thus the development and deployment of information should be in line with the strategy of the firm. Information system manager should understand how it can change the social and work life in the firm. So Information system manager should have clear idea what type of system is to be build, what it will do and how it will be implemented.
Moreover Information Systems have the better competitive strategic advantages over other things. It can have significant impact on cost leadership, product differentiation, innovation, customer growth and creating virtual alliance with others. Taking due care of these advantages of the IS, it has to be aligned with the business strategy of the organization so that significant progress can be achieved.
While planning the information system strategy other things to be considered are the consequences that might be brought out after the implementation e.g. reduction of human resources, cutting of other jobs, need of expert manpower and need of new equipment etc.
Points to be considered while planning information system strategy with the business strategy are thus:
a. Business environment
b. Organizational culture
c. Organizational structure
d. Business process
e. Internal politics
f. Management decision making process