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Strategic Planning for MIS

MIS | Strategic Planning: Here, we are going to learn about the concept of Strategic Planning, Strategic Planning Process and its key advantages.
Submitted by IncludeHelp, on March 10, 2021

Strategic planning for MIS is a managerial activity that enhances the working process and prospects of an organization.

The preparation of an organization's information system has traditionally been divorced from the overall strategic planning processes by which the organization plans for its future. The relation between the organization's "strategy set" and an MIS "strategy set" is conceptualized and illustrated as an M/S strategic planning mechanism.

For strategic planning and management, there are many structures and methodologies to choose from. Although there are no hard and fast rules when it comes to choosing the right system, the majorities of them follow a similar trend and share similar characteristics.

Many frameworks cycle through some variation on some very basic phases:

  • Analysis or assessment, where current internal and external environments are analyzed.
  • Strategy formulation, strategy formulation process is developed and documented.
  • Strategy execution is a phase of planning where the proposed plan is converted into operational planning.
  • Evaluation or sustainment/management phase, where ongoing refinement and evaluation of performance, culture, communications, data reporting, and other strategic management issues occurs.

Strategic Planning Process

The strategic planning process necessitates a great deal of consideration and planning from a company's upper management. Executives can consider a variety of options before deciding on a course of action and then determining how to strategically execute it.

A company's management should choose a strategy that is most likely to deliver positive results (usually described as increasing the company's bottom line) and that can be implemented cost-effectively with a high probability of success while minimizing unnecessary financial risk.

Strategic planning is traditionally thought to be done in three steps: growth, implementation, and evaluation.

1) Strategy Formulation

  • In the process of formulating a strategy, a company will first assess its current situation by performing an internal and external audit.
  • The purpose of this activity is to identify the organization's strengths and weaknesses to frame effective strategies.
  • As a result of the analysis, managers decide on which plans or markets they should focus on and how to best allocate the company's resources.
  • Business strategies have long-term effects on organizational success.
  • Strategy formulation is one of the most critical activity which can be carried out by the higher-level management executives of the company. This activity mainly focuses to assign the resources necessary for their implementation and future perspectives of the organization.

2) Strategy Implementation

  • After successful strategy formulation, the organization needs to define the key objectives of the company, and allocate resources for the strategy's implementation.
  • The success of the implementation of strategic planning is often determine by selecting an efficient strategy and put the strategy into action.
  • To execute the strategy, there is a need to create an effective framework to optimize the relevant resources, and redirecting marketing strategies to achieve the desired objectives.

3) Strategy Evaluation

  • Every businessman/woman understands that today's success does not guarantee tomorrow's success. As a result, managers need to assess the effectiveness of a selected approach.
  • Evaluating the internal and external factors influencing the strategy's execution, assessing efficiency, and taking corrective action to improve the strategy's effectiveness.
  • For an instance, a company can make certain changes to achieve the desired changes in customer relations; it needs to implement a new customer relationship management (CRM).
  • The three stages in strategic planning take place at three levels of hierarchy: upper management, middle management, and operational management. As a result, it is critical to encourage collaboration and engagement among employees and managers at all levels to help the company work as a more functional and productive team.

Benefits of Strategic Planning

Following are the most significant advantages of strategic planning:

  • Helps formulate better strategies using a logical, systematic approach
  • Enhanced communication between employers and employees
  • Empowers individuals working in the organization
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