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By N2H

SWOT ANALYSIS and IT

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This is one of the most widely used strategic planning tools. Most managers are familiar with its use. This approach considers both internal and external factors and when well used can effectively balance them both. Assessment of opportunities and threats forms part of the environment scan. Assessment of strength and weaknesses is part of the capability, auditing or evaluation of the organization.

SWOT is now a conventional approach to the consideration of:

a) What are our weak/strong products, divisions, attitudes etc?

b) Are there gaps/opportunities we can go for?

c) Are there dangers/threats we need protection from?

d) Are we strong in the right way to exploit the opportunity where one exists?

The point of performing SWOT Analysis is that not business should take on a high risk strategy to exploit an opportunity especially if they have a significant weakness in that area.

SWOT ANALYSIS AND INFORMATION SYSTEMS
With the particular reference to information systems a SWOT Analysis may address such issues as:

Approach to Information systems:
Whether the organization seeks to lead others or just float with the tide? Does the organization see its information systems as a necessary evil, a scarce resource or a transforming aid?

Use of Information Systems
Are there number of systems which are of poor quality i.e. not easy to use? Systems that are management oriented rather than task based?

Delivery of Information Services:
What is the role of users and user management systems development and operation? What proportion of corporate resources is tied in system maintenance? What system development tools and techniques are in use? What is the quality of technical support available?

Data availability and Management:
What is the degree of data redundancy in the application systems? Is there availability of common data across various processing applications? The quality of data management platform (DBMS)

Having become aware of the potential effect of information systems in an enterprise, we can make further use of SWOT techniques

Weigh up the risks associated with each possible decision

Possible Responses on the Basis of SWOT Analysis:
When both opportunities and strengths are present then the organization is in a position to attack its competitors through the use of information systems with a good prospect of success.

Conversely when threats are faced where there are weak capabilities then the organization must take steps to protect itself from its vulnerability to attacks from its competitors.

When there is value adding opportunities for information systems, but the organization finds itself with weak information systems capabilities then they should beware of following this up since they are less assured of success than others in their sector with more adequate information systems.

Should the organization find itself having strong information resources alongside threatening situations, it should explore avenues to both maintain that quality against the opening up of opportunities and to identify overlooked potential.

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