analyzing the influence of strategic information … the influence of strategic information systems...
TRANSCRIPT
Analyzing the Influence of Strategic Information Systems
Planning for Improving the Supply Chain Management Function Mehdi bagheri, Payam Paslari
Department of management, branch, Islamic Azad University ,Iran.)
Abstract-Today, supply chains encountered with instability in the environmental factors due to
increased competition and technology changes. On the other hand, entering the information systems,
Strategic Information Systems Planning (SISP) emerged to integrate the organization to such changes.
This study aims to provide a model for supply chain management (SCM) using SISP process. This model
prepared for improving the performance of supply chain management described by several indices.
Finally, there have been provided 4 hypotheses on proposed stages with the accuracy of them tested.
There are used the views of 200 superior management of information organizations through Iran
discussing the sales in fiscal year, 2006 to test these hypothesis. In conclusion, the results have been
analyzed and discussed based on the designed model.
Keywords: Strategic Information Systems Planning (SISP), Supply Chain Management (SCM),
1 Introduction Today, the changes in the priorities of end
users, world trade liberation, internet, e-
commerce, increased tendency to outsourcing
and even environmental issues have been
discussed in studies related to supply chain
management. On the other hand, global
competition market and changes in the needs of
customers caused organizations to deal with
improving the supply chain function (amid et al,
2006).
A supply chain includes a networks
comprising from participants and different
operational canals in and out of the organization
influencing on the suitability of supply chain
outputs (Teck- Yong Eng. 2006).
The main objective of activities related to the
supply chain is the customers’ satisfaction such
that provides them with their related product
with maximum quality, minimum cost and
timely.
In supply chain, for improving the internal
processes of supply chain, members must
coordinate with other chain members (Vicky
Manthou et al. 2004).
Figure 1 schematically indicates the supply
chain. As indicated, supply chain processes are
related to the linkage points of organization with
peripheral area.
Nowadays, an efficient supply chain is a
potential way for maintaining the competitive
advantages and improving the organizational
performance. Thus, the competition is not
between the organizations but between supply
chains and this indicates that the more effective
the performance of supply chain, the more
improved is its efficiency (Suhong Li et al,
2004); this results in more concentration of
employees on the main business activities.
On the other hand, the role of information
systems on organizational function changed
effectively and today information systems make
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 185
value for organization (Choon Seong Leem,
Bumyongoh, 2001).
Information systems play role in integration
and cooperation between different parts of
supply chain and so the performance of this
system directly influence on the performance of
a supply chain. Studies indicate that most
successful organizations use e-commerce to
improve their customer services and information
quality.
Strategic planning of information systems is
defined as a process for determining a basket of
PC programs protecting the organization’s
business. In today’s competitive market and
complicated economy, SISP is discussed as a
vital factor for most organizations and it is not
surprising when IT and IS management rank it
as the highest managerial choice (Henry E. New
Jirk, et al, 2005).
According to mentioned subjects and
influence of SISP on organizational performance
as well as interaction of organizational
performance on the performance of supply
chain, this study aims to examine the relation
between above mentioned subjects and provide a
model for effectively planning the supply chain.
2 Literature Review 2-1- Role of Information Systems (IS) in
Supply Chain
According to the studies about the role of
information systems in supply chains, existing
literatures grouped into six main categories
(table 1) (A. Gunasekaran, E. W.T. Ngai).
• SISP in supply Chain
Strategic planning for IT-based supply chain
is a main and fundamental role of organizations.
This indeed is a long term plan for the
performance of information systems in supply
chain system.
• Infrastructure of IT in Supply Chain
Lacking enough knowledge about
infrastructure or IT required for themselves,
organization may fail when modeling their
business. Infrastructure includes software,
hardware and type of system needed for IT in
the chain.
• IT and Knowledge Management in
Supply Chain
When we have activity in a IT-based world,
knowledge employees must participate in
activities coming with value added. IT and
Knowledge management needs a systematic
approach or framework for training the
employees for executing the team work and
innovation. IT management needs planning,
development and launching the decisions
regarding to the business processes and
organizational objectives.
• Launching the IT in Supply Chain
This requires the approach of project
management and including formation of teams
for planning and launching the IT projects. It
must be mentioned that for launching the IT, the
support of superior management is as important
as the technical and financial support.
• Virtual Organizations and Supply Chain
Virtual organizations formed on the basis of
outsourcing concept. Such organizations seeking
for competitive advantage aiming to being
flexible and remaining responsive to the
requirements of market change. The relation
between virtual organization and internet results
in pay more attention to the needs of superior
management by supply chain.
The object of this study is SISP in supply
chain. Therefore, here there are discussed some
literature in details.
2-2- SISP in Supply Chain
Today organization focus on strategic
planning aiming to develop the plans and long
term changes in order for improving their
competitive situation. SISP must support long
term objective and goals of supper chain based
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 186
on the flexibility and responsiveness to the
necessities of market changes. For example, IT
will facilitate the organization and cooperation
in the chain by accessing to correct and timely
information. Cerpa & Verner (1998) studied on
the SISP in great organizations in Australia.
They analyzed SISP by different factors such as
ones influencing on SISP, the effect of IS
maturation on SISP and key factors in SISP.
Table 1- grouping the existing papers about role of information systems in supply chain (A.
Gunasekaran, E.W.T)
Group References
SISP in supply chain
infrastructure of IT in supply chain
e-commerce and supply chain
IT and knowledge management in supply chain
Launching IT in supply chain
Virtual organizations and supply chain
IT must result in integration between
commercial partners and can help making a
virtual organization. Turowski (2002) states that
“integration isn’t made easily made but needs
changes in the processes and renovation of some
old structures. SISP is one of the subjects always
considers process reengineering among all
beneficiaries, for this reason it can provide a
proper bed for launching the supply chain
management in the organizations. Determining
the strategic dimensions of influence of IT on
supply chain management is an important issue
always considered by managers. In SISP, this
has been indicated in prioritizing the activities
and projects (Talluri, 2000).
Today, one can search for the effect of IT in
information systems. MRPs generation is one of
the prominent examples of great effects of
making coordination in supply chain. By
reducing the negative points of manufacturers
and suppliers, these systems could provide the
organizations with competitive advantage and
this is what SISP is seeking for (Zimmerman,
2000). Thus, the thought and approach of supply
chain management have always interacted to
each other and each one played role for the
development of another one.
To approve the effect of ISS on supply chain
management, it is necessary to consider the role
of IT strategy on supply chain. Today price
plays important role for continuance of presence
globally. Mainly, the supply chain management
made because one can remove the activities
without value added and it causes the
organizations to supply their products by low
prices. IT in all stages could both reduce the cost
of processes and help better decision making.
CAD&CAM systems and electronic supply
systems and web-based systems are accounted
as such effects.
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 187
The role of SISP in supply chain
management has been considered of different
perspectives. For example, two Greece
researchers believe that for properly using the
concepts of SISP in supply chain, it is better to
use Fuzzy recognition maps instead of old tools
(Karadaras& karakos, 1999). Using such tools
can make creativity and synergism in the
organization and also prevents defensive
movements in the future. It must be always
stressed that such tools must be easily used and
accepted by superior management of the
organization.
Although there are so many studies in the
field of interactions of SISP and SCM, but there
are no enough information about the effects of
SISP on SCM. The planning part plays
important role in SCM. But there is mostly paid
attention to the outputs with less attention to
suitable factors to planning. For this reason, this
paper focused more to this subject and tried to
first approve this effect and then recognize some
influencing factors.
2-3- Supply Chain Management (SCM)
SCM defined in different forms literally and
some of its definitions are as below.
SCM is the coordinated action between
goods and services, information an financial
beginning from raw materials and ending to
supplier, manufacturer, wholesaler, retailer, and
end user.
Upon the definition, SCM includes providing
the integrity of business key processes from raw
materials supplier to end user on the products,
services and information that come with value
added for customers (Suzanne de Treville et al.
2004).
The most important point in the supply chain
is that besides goods and services, supply chain
includes dynamic flow of information between
different steps.
2-4- Steps of Decision Making in Supply
Chain
Supply chain decisions grouped based on the
time and operational considerations. Time-based
decision makings can be categorized into three
groups, strategic (long term), tactical (mid term)
and operational (short term). Upon the
operational considerations, there are four main
points of decision making in SCM including:
supply, manufacturing, distribution and logistics
(S.Biswas, Y. Narahari, 2004).
In another point of view, the stages of time-
based supply chain separated into three stages,
design, planning and operational (Sunil Chupra,
Peter Meindel, 2001). In the design stage of
supply chain, a company makes decision how to
structure its supply chain and how the process of
a step conducted. A company must ensure that
the configuration of supply chain can support the
strategic objectives of the company during this
stage. The supply chain design decisions made
usually for long term and it is not economic for
the company to replace it in short term.
Decisions made in this stage come with strategic
nature such as place of production, production
capacity, products and types of information
systems that must be used in this field.
In the planning stage, company set up a
collection of operational policies determining
the short term duties of the company. Decisions
made in this stage are based on this point that
configuration of supply chain is fixed. This
configuration has made a limitation and must be
observed during this stage. This stage begins by
anticipating the demand of next year.
Operational planning is the final stage in
SCM. Supply from which place, production
outsourcing, provision and inventory (portfolio)
policies are some of such problems being
discussed in this stage. In this stage the time
horizon is weekly-based or daily-based and
during this stage company may consider the
personal demand of customers. In this stage
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 188
there are disposed activities such as allocating
the personal demands to the inventory or
producing or allocating an order to a special
transportation state.
Because operational decisions made in short
term, so there are mostly less unreliability for
demand information. During the operational
stage the goal is that regarding to the limitations
in the configuration and policies of planning, the
unreliability will be reduced and performance
will be improved.
2-5- Measures of Supply Chain Function
For improving the performance of supply
chain during the time it is necessary to measure
it in given intervals. For accurate assessment, it
is needed to design a number of indices in this
field. For assessing the performance of supply
chain, there have been provided more indices.
This paper tries to sum such views and apply
more frequently used measures.
2-6- Strategic Information Systems
Planning (SISP)
SISP defined such that it is a process for
determining a basket of PC programs that must
be effectively along with the organizational
strategy and has the power of making the
competitive advantage against rivals for
organization (Doherty; 1999).
Table 1- measures of SCM
Measure Description Reference
Customer’s
satisfaction
- Flexibility
- Time to response
the customer
Rohit
Bahtnagar
and Amirk
S, Sohal,
2005
Costs of
supply chain
- Finance related cost
and capital return
- Cost of information
processing
Rohit
Bahtnagar
and Amirk
S, Sohal,
2005
Order
planning
- Time of order
supply
- Route of customer
demand
Injazz J.
Chen
Antony
Paulraj,
2003
The role and efficiency of information
systems in the organization is developing and
investment in this field became more important
and SISP turned to one of the main executive
activities in the field of information technology
and information systems (Galliers, 1993;
Newkirk et al., 2003).
SISP plays vital role to helping the
organizations for avoiding the opportunities loss,
reworking and resources waste (Lederer and
Sethi, 1996).
This is a continuous activity enabling the
organization to determine the priorities of
information systems development. Such projects
made for making the capacity of influencing on
the competitors or along with business goals.
The process of formulating the information
system planning in the organization helps
planners to seeking for the opportunities and
discovering the information in the organization.
One of the main objectives of SISP in the
organization is determining the opportunities for
registering and documenting the knowledge in
the organization. Today, the biggest challenge in
the organizations is that we need know if the
information in our hand are qualified and this
can be summarized in flexibility, accuracy, time
saving, proportion, validity of source and its
completeness (Ward & Pepard, 2000).
SISP results in anticipating the changes, thus
by this sense, we may develop a plan less
influenced by the outcome of changes. This
makes the commitment and trust in the superior
management of the organization (Henry E. New
Kirk et al. 2005).
In the strategic awareness stage, we focus on
the planning process to attain proper knowledge
about competitors, sources, customers and
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 189
legislators. Organizations must carefully
organize the teams with higher knowledge and
skills. In this stage, superior management may
promote the organizational trust and maintain
the financial support of the project.
In the stage of analyzing the situation, by
accurately studying the business, organizations
and information systems, we can find better
knowledge about organizational necessities.
Studying the external medium of business and
information technology media for obtaining
better knowledge about organization is another
work may help in this stage to provide better for
this planning.
The third stage is the understanding of
strategy. Strategy sense provides more actual
alternatives by determining and evaluating the
opportunities. Determining the objectives of
information technology let organization to align
the future objectives of business and information
technology.
The next stage in SISP is preparing the
strategy. Preparing the strategy be accurately
determining the plan (processes, architecture and
projects) more likely estimate the planning
objectives. Better priority results in more
possibility for applying the plan and it provides
better chance for estimating the objectives.
The final stage is launching the strategy that
more considering the change management and
executive plan, results in better execution.
3 Methodology In this study there was used the opinions of
200 top managers of information system through
Iran on 2006. For this reason, there was
designed a questionnaire by the help of related
experts. Likert Spectrum was used as a scale for
evaluating the opinions of experts.
The methodology of this study is of
surveying (measurement) type and based on the
literature reviews, there proposed a model for
two stages of supply chain including design and
planning.
a. Hypothesis
3-1-1- Hypotheses of Designing Phase
Hypothesis 1- high level of attending to the
strategic awareness during supply chain design
results in improved performance of SCM
Hypothesis 2- high level of attending to
situation analysis in the stage of supply chain
design results in improved performance of SCM
Hypothesis 3- high level of attending to
strategy sense in the stage of supply chain
design results in improved performance of SCM
3-1-2- Hypotheses of Planning Phase
Hypothesis 4- high level of attending to
strategy preparation in the stage of supply chain
design results in improved performance of SCM
Table 2- stages and activities of SISP (Mintaz, 1997)
Stage Activity
Strategic awareness Determining the key planning subjects
Determining the planning objectives
Organizing and planning the teams
Obtaining the superior management commitment
Situation analysis Analysis of current business systems
Analysis of current organizational systems
Analysis of current information systems
Analysis of IT external area systems
Strategy sense Determining the main objectives of IT
Determining the opportunities for improvement
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 190
Evaluating the opportunities for improvement
Determining the high level strategies of IT
Strategy preparation Determining the new commercial processes
Determining the new information technology architecture
Determining new projects
Determining the priority for new projects
Strategy launch Determining the changing management approaches
Determining the practical plans
Evaluating the practical plans
3-2- Preliminary Test
There were sent questionnaires for 20 of top
managements of companies. All these people
had background more than 5 years in the
information systems. In due date, the
questionnaires were collected and tested used
Kronbakh alpha technique.
3-3- Data Collection
The questionnaires sent for 200 top
managements of companies through Iran on
2006. The name of these organizations and their
managers obtained from the Industrial
Management Club of Iran. Totally 93
questionnaires returned back and analyzed.
4 Data Analysis By analyzing the questionnaires there was
determined that most top managers of IT of
prominent organizations had executive
background between 5 to 10 years in the
information systems (table 3).
Table 3- executive background of
managements
Executive
background (yr)
No. of
respondents
Percentage
1-5 22 23.66
5-10 54 58.06
More than 10 17 18.28
Total 93 100
Most top managements of mentioned
organizations had bachelor degree (table 4).
Table 4- education
Education No. of
respondents
Percentage
Up to
associates
4 4.30
Bachelor 52 55.91
Master 31 33.34
PhD 6 6.45
Total 93 100
Most of them were also in the range of 30 to
40 years old (table 5).
Table 5- age range of sample members
Age No. of
respondents
Percentage
20-30 15 16.13
30-40 41 44.08
More than
40
37 39.79
Total 93 100
4- Hypothesis Analysis
The relation between SISP and supply chain
performance was studied in the framework of 4
hypothesis using non-parametric binominal test
and mean test.
The test results indicated very good P-values
for each 4 hypothesis. The mean test also
verified the validity of these results (tables 6 &
7).
Finally there was used Freedman Test to find
which hypothesis has highest effect on the
performance of supply chain (table 8).
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 191
4-1- Strategic Awareness Step
Top managers consider this step very
important during supply chain design and
because the significance level of test is less than
5% so one can accept the hypothesis. Such
conclusion detailed in the mean test.
4-2- Situation Analysis Step
Results indicate that this step influences on
the supply chain performance in the opinion of
managers and because the significance level of
test is less than 5% so one can accept the
hypothesis. Such conclusion detailed in the
mean test.
4-3- Strategy Sense Step
Because the significance level is less than
5%, one can accept the hypothesis. This
conclusion detailed in mean test. According to
the mean test table, the higher score of strategic
awareness (3.39) that is higher than p-value (3).
And because significance level of test is less
than 0.05, one can accept this hypothesis by
95% confidence.
4-4- Strategy Preparation Step
According to the mean test table, the higher
score of strategic awareness is (3.67) and is
more than p-value (3), thus the significance level
is less than 0.05 and this hypothesis can be
accepted by 95% confidence.
Table 6- statistical measures for Binominal test of hypotheses
Hypothesis Actual P P-value Error Significance
H1 0.82 0.5 0.05 0.00
H2 0.73 0.5 0.05 0.00
H3 0.87 0.5 0.05 0.00
H4 0.92 0.5 0.05 0.00
Table 7- statistical measures for Mean Test of hypotheses
Hypothesis Mean Standard deviation Significance level P value Calculated t
H1 3.52 0.4146 0.00 3 12.306
H2 3.387 0.3876 0.00 3 9.630
H3 3.399 0.3047 0.00 3 12.508
H4 3.677 0.3370 0.00 3 19.386
Table 7- statistical measures for Freedman Test
Hypothesis SISP Mean rank Ranking
H1 Strategic awareness 2.84 2
H2 Situation analysis 2.34 3
H3 Strategy sense 1.96 4
H4 Strategy preparation 2.86 1
5 Conclusion
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 192
SCM is one of the most powerful operational
paradigms for improving the competitive
advantage of producing and servicing
organizations (A. Gunasekaran, W.C. Chang,
2004).
By current trend, today the organizations are
not important but their value added in the supply
chain and its management is important. On the
other hand, increasing the globalization and
competition internationally and emergence of
new technologies like IT, past experiences fared
(Michael Harvey, R, glen Richey, 2001).
On the other hand, by emergence of IT, SISP
has been prepared to response to the unreliability
and alienation of organization with IT. This
study tried to propose a model for improving the
designing and planning in SCM using SISP
process.
The important point in supply chain
management is the improvement of performance
through the chain. For this reason, this paper
focused on indices with higher performance and
frequently used. The model prepared is a spiral
model; that is, in any stage the previous stages
have been also considered and revised. Thus,
one can ensure that ambient changes may less
influence the SCM.
Finally by statistical test for hypothesis, all 4
hypotheses verified. According to the study, one
can conclude that designing and planning the
supply chain can be influenced by SISP and
activities conducted during preparation of SISP
can be used as a proper guide for this.
Activities conducted in the strategic
awareness such as obtaining the needs of top
managers of organizations, determining the
major goals of organization and organizing the
teams all influence on the stage of supply chain
design. According to this hypothesis it is
concluded that supply chain design team must
consider the needs of top managers and major
goals of organization determined in the strategic
awareness stage and must also use the opinion of
SISP teams who are familiar with the
performance of organization and even use them
in the chain design.
In situation analysis stage, accurately
examining the business, organizations and IT,
one can obtain better knowledge about
necessities of organization. In chain design,
considering the documentaries of this stage
provide the planning team with faster
recognition of organization and they must spend
more time for special subjects of supply chain.
Therefore, according to the test results of this
hypothesis, supply chain planning team must
accurately analyze the situation and use them for
planning the supply chain. In the strategy sense
stage, the main objectives of IT and related
strategies will be prepared. Based on the
influence of this stage on supply chain planning,
planning team must determine the type of
required technology based on such objectives
and strategies. The documentaries of this stage,
indeed, can be applied as a proper guide for
choosing the type of proper technology in supply
chain. By results of strategy sense stage, one can
ensure that there is needed adaptation between
SISP and type of technology used in supply
chain.
Preparing the strategy by accurately
determining the plan (processes, architecture and
projects) can estimate more likely the objectives
of planning. In this stage the new architecture of
IT will be formed and type of organizational
architecture can influence on the supply chain
planning. Therefore, planners require being
skilled in strategy and architecture of IT before
planning and choosing their method based on
developed strategies and systems. In this stage
new commercial processes are also determined.
This can provide a proper bed for effective
planning and launching the supply chain.
Generally, table 8 indicates the summary of
results of hypotheses:
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 193
Table 8- summary of results
Hypothesis Results
H1 Accepted
H2 Accepted
H3 Accepted
H4 Accepted
6 Recommendations This study tried to specifically examine the
influence on SISP in each stages of supply
chain. Therefore, we will deal with it in the next
paragraphs.
a. Recommended Alternatives for
Improving the Supply Chain Planning
• When forming the designing team and
supply chain planning it is better several persons
of SISP team participate in. this is because such
people have been involved in the major
strategies of the organization and are familiar
with planning in different aspects of
organizational performance. In addition,
presence of such people assures this subject that
obtained plan for supply chain can first “be
coordinated with strategies of IT development in
organization” and second “prepared actually and
based on the existing organization situation”.
• When designing the supply chain,
reviewing the documentaries of situation
analysis can be more helpful for project team to
recognize the organization. The analysis stage in
SISP aims to collect the details about business
for complementing the recognition. Using above
mentioned documentaries, supply chain planning
team can know the organization fast and spend
more time for special subjects of supply chain.
This will also end to the adaptation of modeling
views and results in moving the project along
with route determined for organizational
development.
• The goals of SISP are obtained based on
the needs. Such goals also documented by
holding several meeting and after verified by top
managers; therefore, one can conclude that goals
passed from several filters and indicating the
real opinions of managers. Therefore, this may
eliminate need to more energy by project team
and organization’s employees and can be only
determined by holding two meetings among.
• One of the important factors in SISP is
SWOT model. This model plays important role
and indicates the weakness and strength,
opportunities and threats (SWOT) of
organization). When designing the supply chain,
it is very important noting to the weakness and
strength. Weaknesses of chain result in making a
bottleneck in its operation and slowing down the
movement of financial, physical and
informational currents. Regarding to the
technology opportunities one can also establish
the arrangement of chain such that enjoying
them, there can be made a higher flexibility and
awareness of potential threats can eliminate
most strategic errors in planning and maintain
the supply chain stability.
• Another important point when designing
the supply chain is considering the basket of
technologies provided in the SISP as well as
priorities provided in this field. If designing is
based on the systems with less priority for
organization, it will be gradually set aside. It
must be stressed that better and updated
technology for designing the supply chain may
not necessarily be the best choice for supply
chain of organization and its commercial
partners, but the technology is the best one that
is prioritized by organization and organization
strategy is based on using it.
• One of the activities applied in SISP is
comparative studies. In such studies, the IT
related to the organization business will be
recognized and some of them will be proposed
based on the situation and characteristics of
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 194
organization. When designing the supply chain,
the documentaries of comparative studies can be
very fruitful and a source of idea processing for
designers and planners.
b. Alternatives recommended for
improving the Supply Chain Planning
• The planning stage in supply chain deals
with anticipating the future demand and
planning for meeting its needs. Such anticipation
is conducted majorly and based on past statistics
but by developing the SISP, the activity of
organization will be gradually developed and
therefore previous data may not have a proper
estimation for the future. Therefore, it is needed
to pay more attention to the decisions and
information projects planned in the organization.
This cause the abrupt changes in demand cannot
be effective on the plan. Using new IT
architecture, the demand periods will be
shortened, then the major planning of supply
chain will be changed as well and so it is
necessary more courses for reviewing instead of
one course.
• Using new IT and technologies,
recording the order and following it up will be
conducted as fast as possible. Information
systems result in reducing the uncertainty of
ordering duration and thus it will increase the
possibility of success. The type of organizational
strategy and system used here will be more
considered. The type of IT strategy and related
systems for development form the basis of
planning for supply chain because using each of
information systems, the type of behavior of
planning parameters will be also changed. The
technology planned in the documentary of SISP
has direct influence on estimations needed in the
supply chain planning. Therefore, SISP
determines the methods used for estimating the
demand as well and the better the bed provided
by technology, the better estimation the planners
will have. Therefore, planners required to be
skilled in IT strategy of organization before
planning and choose their method based on the
strategies and systems developed; because
selecting a highly accurate method without
proper infrastructure for receiving the initial data
may practically results in failure
7 Theoretical Model In this paper, there has been proposed a
model based on the existing literatures and
opinion of top managers of companies. All
variables of model and their specification
formed based on literature reviews (figure 3).
Model provided in this section contains two
main stages. Stages forming this model are
based on the staged of supply chain planning
and any step obtained from SISP.
The first step of this model is designing
stage. This stage mainly includes organizational
strategic problems and dealing with the
generalization of such problems in the supply
chain area. In this stage, the aim is providing a
strategic recognition of competitors, suppliers,
customers, legislators and all beneficiaries of
supply chain.
Second stage is planning stage. As indicated
in SISP, this stage comprises four stages.
Determining the supply chain processes, supply
chain architecture, and type of communications,
and projects must be provided in the supply
chain and the priority of such projects comprises
the steps of this stage. Therefore, in this stage,
the structure of supply chain and its architecture
is formed and there is obtained a work plan for
SCM.
This model includes a spiral model such that
in any stage some of works done in the previous
stage will be redone and revised. Thus,
management can ensure that changes applied in
any stage have also applied in the previous
stages and plan is properly integrated.
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 195
Questions the influence in improvement of Supply Chain Performance
1 The support of top manager of supply chain planning in SISP Very low Low Average High Very high
2 Paying attention to key subjects determined in SISP Very low Low Average High Very high
3 Organizing and planning the IS expert teams in ISIP Very low Low Average High Very high
4 Considering the goals determined in IS strategic plan in SISP Very low Low Average High Very high
5 Grouping and considering the expectations of top managers of IT in
SISP Very low Low Average High Very high
6 Analysis of current situation of business in SISP Very low Low Average High Very high
7 Analyzing the current IS in SISP Very low Low Average High Very high
8 Analyzing the weakness and strength in SISP Very low Low Average High Very high
9 Analyzing the Modern IT in SISP Very low Low Average High Very high
10 Analyzing the IT infrastructure in SISP Very low Low Average High Very high
11 Considering the main objectives of IT in SISP Very low Low Average High Very high
12 Considering the high level strategies of IT in SISP Very low Low Average High Very high
13 Determining the opportunities for improving the existing technology
in SISP Very low Low Average High Very high
14 Evaluating the opportunities for technology improvement in SISP Very low Low Average High Very high
15 Considering the IT architecture in SISP Very low Low Average High Very high
16 Determining the new business processes in SISP Very low Low Average High Very high
17 Determining the changes made in requirements of IS in the
framework of separate projects in SISP Very low Low Average High Very high
18 Changing the priority of projects defined in SISP Very low Low Average High Very high
Figure 3- model proposed for supply chain management process using SISP
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 196
References
[1] Amin Amid, S.H. Ghodsypour, Christopher O’Brien,2006,” A weighted additive fuzzy
multiobjective model for the supplierselection problem under price breaks in a supply Chain”,
production economics.
[2] Teck-Yong Eng, 2006,” Mobile supply chain management: Challenges for implementation”
Technovation, vol 26, pp 682–686
[3] Vicky Manthou, Maro Vlachopoulou, Dimitris Folinas, 2004,” Virtual e-Chain (VeC) model for
supply chain collaboration”, International Journal Of production Economics,vol 87,pp 241-250
[4] Suhong Lia, Bhanu Ragu-Nathanb, T.S. Ragu-Nathanb, S. Subba Raob, 2004,” The impact
of supply chain management practices on competitive advantage and organizational
performance”, omega the international journal of management science, vol 34, pp 107-124
[5] Choon Seong Leem, Bumyong OH, 2001,”Evaluating Information Strategic Planning an
Evaluation System and its Application”, Journal of System Integration, vol 10, pp 207-222
[6] Henry E. Newkirk, Albert L. Lederer, 2005, “The effectiveness of strategic information
systems planning under environmental uncertainty”, Information & management, 2006, p 21
[7] A. Gunasekaran, E.W.T. Ngai, 2003,” Information systems in supply chain integration
and management”, European journal of operation research,vol159,pp269-295
[8] Cerpa, N., Verner, N.M., 1998.” Case study: The effect of IS maturity on information systems
strategic planning”. Information& Management,vol 34,pp 199–208.
[9] Turowski, K., 2002.” Agent-based e-commerce in case of mass customization”. International
Journal of Production Economics,vol75,pp 69–81.
[10] Talluri, S., 2000.” An IT/IS acquisition and justification model for supply-chain
management”. International Journal of Physical Distribution and Logistics Management,vol
3,pp221–237.
[11] Zimmerman, C., 2000. “Partnership are vital to Sears_ Web strategy. Internet Week” vol30,
pp77–80.
[12] Kardaras, D., Karakostas, B., 1999. “The use of fuzzy cognitivemaps to stimulate the
information systems strategic planning process”. Information and Software
Technology,vol41,pp197–210.
[13]Suzanne de Treville, Roy D. Shapiro, Ari-Pekka Hameri, 2004,” From supply chain to
demand chain: the role of lead time reduction in improving demand chain performance”, Journal
Of Operation Management,vol 21, pp 613-627
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 197
[14] S.Biswas, Y.Narahari, 2004,” Object oriented modeling and decision support for supply
chains”, European Journal of Operation Reasearch, vol 153, pp 704-726
[15] Sunil Chupra, Peter Mendel, 2001, Supply Chain Management: Strategy, Planning &
Operation, Prentice Hall, Newjersey
[16] Neil F. Doherty, Heather Fulford, 2005,” Aligning the information security policy with
the strategic information systems plan”, Computers & Security, vol 25, pp 55-63
[17] Ohit Bhatnagara, Amrik S. Sohal, 2005, “Supply chain competitiveness: measuring the
impact of location factors, uncertainty and manufacturing practices”, Technovation, vol 25, pp
443-456
[18] Injazz J. Chen, Antony Paularj, 2004,” Towards a theory of supply chain management:
the constructs and measurements”, Journal of operation management, vol 22, pp 119-150
[19] Lederer, AL Sethi, 1996, “Key prescriptions for strategic information Systems planning”,
journal of management Information Systems, vol 13, pp 35-62
[20] Joe Peppard, John Ward, 2004,” Beyond strategic information systems: towards an IS
capability”, Strategic Information Systems, vol 13, pp 167-194
[21] G. Mentzas, 1997, “Implementing an IS strategy-a team approach implementing”, Long
Range Planning, vol 10, pp 84-95
[22] A. Gunasekaran, W.C. Chung, 2004,” supply chain management for the21st century
organizational competitiveness”, International Journal of Production Economics, vol 87, pp 209-
212
[23] Micheal Harvey, R.glen Richey, 2001,”Global Supply Chain Management the Selection of
globally Competent Managers”, Journal of International Management, vol 7, pp 105-128
Recent Researches in Circuits, Systems, Communications and Computers
ISBN: 978-1-61804-056-5 198