The Role of Information Systems in Enhancing Strategic Decision Making: A Review and Future Directions

Аннотация

In the digital change era, organizations are becoming more dependent on Information Systems (IS) as part of the implementing strategic decision making throughout various levels of operation. The paper gives a formal, evidence-based literature overview to explore the ways in which IS helps to make better, faster and more optimal decisions with respect to long-term business perspectives. Based on peer-reviewed research of more than 80 studies using approved academic sources like Scopus, IEEE Xplore, and ScienceDirect, and Wiley-Online Library, the review summarizes analyzed scholarly literature of the past ten years. This paper classifies IS types, which include Decision Support System (DSS), Executive Information System (EIS), Enterprise Resource Planning (ERP) and Business Intelligence (BI) system, based on their strategic capabilities. Quantitative factors including reduction in the cycle time of decisions, return on investment in The American Journal of Management and Economics Innovations 80 https://www.theamericanjournals.com/index.php/tajmei information technology as well as the ability to predict development, merger and acquisition, and digital were measured to gauge IS effectiveness. Due to innovation among others. Such decisions are research findings, there is positive and constant multifaceted, complex and usually irreversible which is relationship between adoption of IS and improvement why the availability of high-quality and credible of strategic performance outcomes in various sectors information is the key. This need is fulfilled by such as healthcare, manufacturing, finance, and retail. Information Systems that combine different internal and Yet there are a number of obstacles which still remain external data sources and provide high-power, such as barriers of integration, opposition to digital analytical tools, modeling tools and simulation tools. culture and inability in decision makers to possess Consequently, the decision makers will be in a better adequate analytical skills. The paper has identified such position to predict risks, test alternative events, and constraints and provided an organizational readiness pursue data-based courses of actions more confidently. framework of strategic IS integration. Additionally, it Evolution of IS has been reflected in rising burden on the demonstrates upcoming horizons like AI-helped IS, real- decisions making process. Old systems like TPS and MIS time analytics, and morality IS governance as potential which included basic data store and reporting abilities. ardent research facilities in the future. The uniqueness With the evolution of Decision Support Systems (DSS), of the study consists in its integrative comprehensive Business Intelligence (BI) platforms, Enterprise Resource analysis of disparate knowledge, as well as the creation Planning (ERP) systems and most recently Artificial of the prospective agenda of matching IS potential with Intelligence (AI) driven analytic engines, the role of IS strategic organizational goals. The review contains has taken much wider dimensions. Such systems can practical suggestions to the business leaders, IT now support strategic alignment besides being utilized strategists, and policy makers who are willing to derive in operational efficiency, real time forecasting and business competitive advantage out of IS.. competitive analysis. Digitization of companies Keywords: Information Systems, Strategic Decision operations in various sectors now has resulted in the Making, Business Intelligence, IT-Driven Strategy, Digital rising of data as a valuable arsenal of companies, and IS Transformation is the conduit which takes this raw information and converts it into winning knowledge. 1. Introduction Irrespective of these technological advancements The modern age of digitalization has presented several organizations are not able to achieve full companies with operating conditions characterized by strategic potential of Information Systems. Achieved fit fast-changing technological environment, ever-changing between IS capabilities and business strategy continue market needs, international competition, and increased to be a thorn in the flesh. IS implementation plans in amounts of data. Because of such turbulent nature, select cases are short-term operationally-specific or strategic decision making has grown to be very complex commercially strong (vendor influenced) instead of and not only does it involve experience and intuition, it being based on specific strategic road-map. This makes also needs timely access to appropriate, accurate and the strategic decision-making capacity of these systems actionable information. To satisfy this need, Information not evident enough. In the remaining cases, the Systems (IS) have come up as an important tool that readiness of the organization to integrate IS into helps improve organizational decision making. They strategic processes, expressed as the low levels of digital have the cap