Leveraging Information Systems For Strategic Management: Enhancing Decision-Making and Organizational Performance
Leveraging Information Systems For Strategic Management: Enhancing Decision-Making and Organizational Performance
https://www.scirp.org/journal/ajibm
ISSN Online: 2164-5175
ISSN Print: 2164-5167
Ashrafuzzaman Hera1, Abdullah Al Rian1, Md. Omar Faruque1, Mir Mohtasam Hossain Sizan2,
Nure Alam Khan3, Md. Atikur Rahaman4, Mohammed Julfikar Ali5
1
Department of Management Information Systems, International American University, Los Angeles, CA, USA
2
Department of Business Analytics, University of North Texas, Denton, USA
3
Department of HRM, Fareast International University, Dhaka, Bangladesh
4
School of Management, Jiujiang University, Jiujiang, China
5
School of Business & Economics, Presidency University, Kolkata, India
DOI: 10.4236/ajibm.2024.148054 Aug. 13, 2024 1045 American Journal of Industrial and Business Management
A. Hera et al.
Keywords
Leveraging Information Systems, Strategic Management, Decision-Making,
Organizational Performance, UK, FMCG Sector
1. Introduction
1.1. Background of the Study
Increased technologies have impacted on the strategic management where in-
formation systems (IS) form an integral component that boosts an organiza-
tion’s performance and improves its decision making. Consequently, integrating
IS into strategic management has recently been an essential aspect for both the
attainment of competitive edge and operations management. IS thus helps in
compilation and processing of large data and provides necessary support to the
managerial level in making appropriate and timely decisions. It also comple-
ments various strategic activities such as market assessments, planning, and de-
velopment so as to improve the organizational efficiency. The capability to uti-
lise Information Systems for strategic management is especially valuable in the
context of increasing technologic developments and a shifting business envi-
ronment that presupposes high velocities of change and highly informed deci-
sions (Nguyen & Tran, 2023).
Different sectors and organizations have considered strategic business initia-
tives and performance outcomes that can be provoked by IS. Organizations have
accredited the use of integrated and strategic information systems like Enterprise
Resource Planning (ERP) and Customer Relationship Management (CRM) sys-
tems to massive increases in operational efficiency, customer satisfaction, and
organizational performance (Alsharari et al., 2023). These systems give general
picture of business processes of organizations and their customers, which enable
firms to fine-tune their strategies to address the customers’ needs hence improving
customer satisfaction. Lastly, the effective application of advanced analytics and
BI technologies allows companies to determine new trends and potential future
situations and act accordingly concordantly with the changes. Therefore, IS not
only contributes to strategic decision-making but also facilitates continuous
learning and improvement processes in organizations (Johnson et al., 2022).
However, the use of IS for strategic management also has limitations such as
high costs that may be required to implement technology and train people and
includes issues of security as well as compatibility issues that are likely to arise
when trying to incorporate IS within the existing processes of the firm. In a
broader context, three key conditions for efficient IS utilisation have been iden-
tified: alignment of the technology with specific organisational objectives, and
strategic cultivation of a data-oriented organisational culture. In addition, it is
worth acknowledging that technology is a vast area that is only developing,
which means that new strategies and methods are to appear constantly to remain
unique. Overcoming these challenges requires a multilevel solution that encom-
passes leadership commitment, learning organization, and institutionalized IT
governance structures. Through overcoming all these barriers, it becomes easy to
capture the benefits offered by IS in boosting the managerial capabilities of an
organization’s strategic management and thereby producing high organizational
performance in the current and constantly advancing business environment
(Smith et al., 2023).
agement”: Regarding the UK FMCG sector it could be linked to the fact that the
industry is highly competitive, it is always in a state of flux. This industry is a
very competitive industry where making the right and speedy decisions is vital in
maintaining competitiveness and continued business operations. IS is vital as it
offers both current data and analytical tools and anticipatory tools, which are
essential in decision-making. In strategic management, IS provides a means of
better managing organizational functions, altering supply chains, and com-
municating with consumers. The UK market has been changing gradually and
by employing IS, FMCG firms are able to forecast the changes and thus respond
to the changes in the law or meet high expectations on sustainability and ethics.
Furthermore, the use of IS improves the organizational performance indicators
thus dynamism and innovativeness in organizations. From the analysis of IS in
this sector, the study will encourage other sectors to adopt this technology as a
means to improve competitive edges.
2. Literature Review
2.1. Strategic Management and Information Systems
Over the years, the incorporation of Information Systems (IS) into strategic
management has emerged as an important field of research due to technological
developments and the ever more complicated business environment in the
global context. Strategic management therefore defines cross-organizational
decision making, execution and assessment aiming at achieving organizational
goals. Information Systems, including data acquisition and processing technol-
ogies, play a central role in this process as they offer the means whereby data
can be collected, processed and utilised efficiently. Information Systems in
strategic management enables an organization to improve organizational flexi-
bility and performance through data analytics, Business intelligence, and pre-
dictive modelling in the decision-making processes. This coordination is most
beneficial in fields such as the Fast Moving Consumer Goods sector, which is
characterised by high volatility, constant changes in the market and customer
needs.
3. Methodology
3.1. Theoretical Framework
Figure 1 illustrates the theoretical framework highlighting how leveraging in-
formation systems (IS) impacts decision making and organizational perfor-
mance. It suggests that effective use of IS enhances decision-making processes,
approach to share data succinctly and clearly. One of the strengths of using
quantitative research designs is that there is a well-defined association between
statistical data and the aim and hypotheses of the study. This factor is one of the
primary reasons for choosing a quantitative research approach as the method of
data collection.
when assembling the data for this research endeavor. Issues that relate to the
voluntaries’ right to autonomy were discussed, including the previous written
consent they gave as the participants in the study. Indeed research information
availed here can help in preparing a desirable response. Moreover, the privacy
and the integrity of the data has also been examined. The researcher alone will
be the only person to have the access to any of the data or information that could
be used to trace or reach a particular participant. As to the information dissemi-
nated, complete confidentiality of the research findings has been upheld. In this
study the researchers have exemplified high levels of moral conduct.
4. Results/Findings
4.1. Demographic Analysis
4.1.1. Table “Gender” (Table 1, Figure 2)
In relation-n to the gender distribution, the data show that males constituted
slightly more than half of the sample, accounting for 49 percent (49 partici-
pants), while females constituted slightly less, accounting for 51 percent (51 par-
ticipants). The varied breakdown of participants implies that there is no inclina-
tion towards either gender thus giving a 360-degree view for analysis. The latter
further attests to the fact that the compiled sample incorporates 100 participants
with equal numbers in both gender groups. This distribution is important for
achieving greater objectivity in the study and to obtain relevant conclusions
since the gender factors should be balanced and comprehensive.
Table 1. Gender.
Valid Cumulative
Frequency Percent
Percent Percent
MALE 49 49.0 49.0 49.0
Valid FEMALE 51 51.0 51.0 100.0
Total 100 100.0 100.0
Figure 2. Gender.
and lastly, the age group of more than 35 years held 29% of the responses and
can be assumed to represent the group of professionals with more working expe-
rience or may be more experienced professionals. The percent total shows that
the 31 - 35 years age group has 71 percent of the examined respondents, the rest
of the sample comprises of the remaining age groups above 35 years. A diverse
age distribution of the sample guarantees that the results of the study will be
more inclusive of various, different, and sources that provide richer data re-
garding the experiences of the implementation of information systems on strate-
gic management and organizational performance of the UK’s FMCG sector.
Table 2. Age.
Cumulative
Frequency Percent Valid Percent
Percent
18 to 24 years 19 19.0 19.0 19.0
25 - 30 years 22 22.0 22.0 41.0
Valid 31 - 35 years 30 30.0 30.0 71.0
Above 35 years 29 29.0 29.0 100.0
Total 100 100.0 100.0
Figure 3. Age.
workers.
Table 3. Education.
Cumulative
Frequency Percent Valid Percent
Percent
Figure 4. Education.
Table 4. Reliability.
Table 6. ANOVAa.
Sum of
Model df Mean Square F Sig.
Squares
Table 8. ANOVAa.
Sum of
Model Df Mean Square F Sig.
Squares
5. Conclusion
5.1. Summary
To sum up, this research gives great insights that Information Systems (IS) are
indispensable for strategic management in the FMCG sector of the UK. The
study thus confirms that incorporating IS is not just an additional resource but
vital for strengthening organizational success and decision-making tools. Thus
IS is proven to be invaluable in market evaluation, planning and improvement,
all fostering organizational effectiveness, by facilitating data accumulation,
computation and intelligent managerial aid.
Informed to prior research, increased adoption of advanced IS tools including
ERP and CRM in the operation of FMCG firms has been proven to augment op-
eration efficiency, customer satisfaction, and performance. They allow for the
continuous transfer of data from one department to another, making it possible
for decision-makers to access the right information at the right time. This acces-
sibility makes it possible to make highly informed and timely decisions that will
directly determine the capacity of the firm to respond well to market forces, and
the demands of the consumers.
However, the study also reveals some of the problems encountered in its im-
plementation as follows Should IS implementation. Painful money affairs that
include initial resource investments, upgrade costs and expenses for putting in
continual support are hurdles that accompany such arrangements for various
motives Such attachments raise security issues and compatibility complications
with the conventional systems in place. These challenges call for the proper posi-
tioning of IS with reference to the general organizational goals and building of
data.
These challenges require the proper positioning of IS in regard to the organi-
zation’s strategic vision and embracing of data-based tendencies. This alignment
helps to ensure that the investment made in IS, especially by the organization
yields maximum benefits and ultimately maintains the essence of IS as a tool for
implementing strategic management in the organization.
In addition, the research points out that it is necessary to eliminate the men-
tioned obstacles to enhance the capabilities of IS for sustainable development. It
is only possible if organizations are willing to address these challenges by dedi-
cating resources for training workers, implementing strong protection strategies
against cyber threats, and considering the compatibility of these systems with the
organization’s requirements and processes. In this way, they are in a position to
control the nuisances and augment the utilities of IS in order to facilitate better
decision-making and superior organizational performances.
The various pieces of evidence collected from research adopting quantitative
research methodology and positivism accentuate the fact of the increased im-
portance of IS for enhancing decision-making and organizational performance.
The examination of structural variables and correlation matrices, along with the
linear regression models explaining the positive relationship between IS strategic
deployment and enhanced organisational performance, supports this conclu-
sion. The sources of evidence above can therefore support the necessary confi-
dence for FMCG firms to rush and invest in IS as capital asset.
Altogether and in conclusion, the study confirms that IS is a central factor
within the strategic management configuration of the FMCG sector in the Unit-
ed Kingdom. Therefore, IS enhances the efficiency of the data flow and supports
decision-making processes, thereby playing a major role in achieving an organi-
zation’s goals and objectives. Nevertheless, based on the analysis, the advantages
of implementing IS significantly overshadow the disadvantages if companies
ensure proper direction and alignment of their initiatives with their targets and
enhance awareness of the significance of information support among organiza-
tional members.
These findings are useful in explaining the market charm for FMCG firms that
seek to unravel the environment and competition. Therefore, by availing the
benefits of IS in the best manner possible, these firms are able to enhance opera-
tional effectiveness, increase consumer satisfaction, and in turn, the ability to
grow sustainably. Thus, the study provides practical value to managers and deci-
sion-makers by outlining the IS implementation processes and pointing to the
respective key issues that should be addressed to mitigate implementation risks
effectively.
Future research may build upon this work to examine the consequences of IS
on organizational performance after a period of time or relationship develop-
ment, and appraise how the role of Information System is likely to change in
light of more recent technologies such as artificial intelligence and machine
learning. First of all, further identifying concrete components affecting the suc-
Conflicts of Interest
The authors declare no conflicts of interest regarding the publication of this pa-
per.
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