Introduction
Information system played a rather important role in most organizations ranging from small business up to large multi national companies. Information system as a basic act as a support in documentation and most of administrative works. Information system can be defined as a set of information resources that interconnected and under same management control and also shares common functionality. This system usually consists of hardware, software, data, information (processes data), applications, communication and user1
Somewhere around late 60’s to early 70’s, some type of information system had been identified to have a strategic importance to the organization. Avison, Eardley and Powell (1996) named Kriebel (1968) and Whisler (1970) as the first two researchers that identified and discussed about strategic importance of information system and linkage between information systems to business framework. Based on the discussion, it can be concluded that information system that have this kind of linkage that enable the organization to perform specific business strategy are called Strategic Information System.
Basically, strategic information system can be described as an information system that has intention to enable the organization to achieve and later to sustain its competitive advantages against their competitors under a variety of environmental conditions. Pant and Hsu (1995) concluded that there is a strong realization by organizations that implementation of information system to the organization’s strategic activities had become one of effective way to improve business performance.
In this review, we are going to establish a hypothesis on the function of strategic information system in enhancing the organizational efficiency and effectiveness. By literature, efficiency means the ratio of output over the input and in depth; efficiency can be explained as achieving the intended result without additional effort, time or expenses. Effectiveness is a measurement of a degree where effect can be attained or how much influence to achieve the effect. To make things simple, efficiency means doing the thing right and effectiveness refers to doing the right thing.
It is important to look into the link, between the system and the businesses strategic objectives.
Basically, review will cover on linkage part which among all will discuss about the alignment of information system to the business strategy, selection of information system to be implemented, knowledge in implementing and handling the information system and also on the factor that either to enable and ease up the implementation or, in the other hand, created hurdles along the path of implementation.
1 http://www.bricker.com/legalservices/practice/hcare/hipaa/164.304.asp
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