The factors affecting strategic information systems applications: An empirical assessment

The strategic potential of information systems (IS) is now well accepted. This paper examines some key characteristics of strategic IS applictions and investigates their relationship with contextual factors representing the industry environment, the organization structure, and the IS function. Empirical analysis of 81 strategic IS applications in large companies shows that these applications contribute mainly to functions involving customers or competitors, primarily to reduce cost or provide some differentiation. They have limited effect on suppliers. However, the effect on suppliers is greater in decentralized organizations and in heterogeneous environments. Moreover, a heterogeneous environment and a mature IS function enhance the role of information storage. The implications for future research and for IS practice are examined.