--- title: "IS planning need; strategic IS" subject: "Information System" chapter: 5 key: "semester_8/information_system:is-planning-strategic-is" source: https://www.bctengineer.com/q/semester_8/information_system/is-planning-strategic-is site: BCT Engineering --- # IS planning need; strategic IS Information System · Chapter 5: Planning for IS - Asked in: 2070 Bhadra, 3+2 marks - Video: [Strategic Information System Planning](https://www.youtube.com/watch?v=_R40BBLopzo) — Wahida Isa - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_8/information_system/is-planning-strategic-is - Whole chapter: https://www.bctengineer.com/md/semester_8/information_system/chapter-5 ## Question Why IS planning is needed for an organization. Explain Strategic Information System. ## Short answer IS planning aligns technology with business goals, optimises resources, prevents duplication, and manages risk. A strategic information system changes the business model to gain competitive advantage, such as airline reservation networks or mobile banking, by locking in customers and being hard for rivals to replicate. ## Answer #### Why IS planning is needed - **Alignment:** makes sure IS supports the business goals and does not become an end in itself. - **Better use of resources:** money, staff and time go to the most valuable projects. - **Avoids duplication and incompatibility:** systems are integrated through a common architecture and data. - **Manages risk and cost:** problems, dependencies and budget overruns are seen early. - **Management commitment:** top management understands and supports IT investment. - **Prepares for change:** helps adopt new technology and adapt to a changing market. - **Provides control:** targets and milestones allow progress to be measured. #### Strategic Information System A **strategic information system (SIS)** is an information system that changes the goals, processes, products or relationships of an organization so as to give it a **competitive advantage** or help it reach its strategic goals. It does not only support operations; it changes how the business competes. - Examples: airline reservation systems, ATM and mobile banking networks, Amazon's recommendation and one-click ordering, supply-chain links between a retailer and suppliers. - Features: supports long-term strategy, used by top management, may link customers and suppliers, hard for competitors to copy, and often changes the business model. - Typical advantages: lower cost, product differentiation, locking in customers and suppliers, and a new market niche. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Why is alignment a reason for IS planning? A. It makes IS an end in itself B. It ensures IS supports the business goals C. It removes the need for management D. It increases duplication Answer: B. Planning ensures IS supports business goals rather than being an end in itself. (Key point: Alignment) 2. How does IS planning avoid duplication and incompatibility? A. By buying separate systems for each department B. By integrating systems through a common architecture and data C. By ignoring standards D. By delaying all projects Answer: B. A common architecture and data integrate systems. (Key point: Avoiding duplication) 3. What distinguishes a strategic information system? A. It only records transactions B. It changes goals, processes, products or relationships to give competitive advantage C. It is used only by clerks D. It is always cheap Answer: B. An SIS changes how the business competes, beyond supporting operations. (Key point: Strategic IS) 4. Which is an example of an SIS? A. A basic payroll printout B. Airline reservation system or Amazon's one-click ordering C. A typing tutor D. A paper filing cabinet Answer: B. Airline reservation systems, ATM/mobile banking networks and Amazon's recommendation are SIS examples. (Key point: SIS examples) ## Related in Information System - [Strategic information system and benefits](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Astrategic-is-benefits) — Information System, chapter 1, asked 2× - [Elements of IS planning](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Ais-planning-elements) — Information System, chapter 5 - [Geographic Information System](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Agis-characteristics-uses) — Information System, chapter 1 - [Short note: HR information system](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Ashort-note-hris) — Information System, chapter 6 - [Electronic organization and EMS](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aelectronic-organization-ems) — Information System, chapter 3 - [Planning for business/IT strategies](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Aplanning-business-it-strategies) — Information System, chapter 5 ## Related in other subjects - [Need for organization and its principles](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aorg-need-principles) — Organization and Management, chapter 1, asked 3× - [Interconnected system and transmission planning](https://www.bctengineer.com/question.md?key=semester_8%2Ftransmission_and_distribution_system_design%3Ainterconnected-system-planning) — Transmission and Distribution System Design, chapter 1 - [Power system expansion planning for a utility](https://www.bctengineer.com/question.md?key=semester_8%2Fpower_plant_design%3Aexpansion-planning-national-utility) — Power Plant Design, chapter 2 - [Microprocessor based system and bus organization](https://www.bctengineer.com/question.md?key=semester_4%2Fmicroprocessor%3Amp-based-system-bus-organization) — Microprocessor, chapter 1, asked 5×