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Analyzing the Influence of Strategic Information Systems Planning for Improving the Supply Chain Management Function Mehdi bagheri, Payam Paslari Department of management, branch, Islamic Azad University ,Iran.) Abstract-Today, supply chains encountered with instability in the environmental factors due to increased competition and technology changes. On the other hand, entering the information systems, Strategic Information Systems Planning (SISP) emerged to integrate the organization to such changes. This study aims to provide a model for supply chain management (SCM) using SISP process. This model prepared for improving the performance of supply chain management described by several indices. Finally, there have been provided 4 hypotheses on proposed stages with the accuracy of them tested. There are used the views of 200 superior management of information organizations through Iran discussing the sales in fiscal year, 2006 to test these hypothesis. In conclusion, the results have been analyzed and discussed based on the designed model. Keywords: Strategic Information Systems Planning (SISP), Supply Chain Management (SCM), 1 Introduction Today, the changes in the priorities of end users, world trade liberation, internet, e- commerce, increased tendency to outsourcing and even environmental issues have been discussed in studies related to supply chain management. On the other hand, global competition market and changes in the needs of customers caused organizations to deal with improving the supply chain function (amid et al, 2006). A supply chain includes a networks comprising from participants and different operational canals in and out of the organization influencing on the suitability of supply chain outputs (Teck- Yong Eng. 2006). The main objective of activities related to the supply chain is the customers’ satisfaction such that provides them with their related product with maximum quality, minimum cost and timely. In supply chain, for improving the internal processes of supply chain, members must coordinate with other chain members (Vicky Manthou et al. 2004). Figure 1 schematically indicates the supply chain. As indicated, supply chain processes are related to the linkage points of organization with peripheral area. Nowadays, an efficient supply chain is a potential way for maintaining the competitive advantages and improving the organizational performance. Thus, the competition is not between the organizations but between supply chains and this indicates that the more effective the performance of supply chain, the more improved is its efficiency (Suhong Li et al, 2004); this results in more concentration of employees on the main business activities. On the other hand, the role of information systems on organizational function changed effectively and today information systems make Recent Researches in Circuits, Systems, Communications and Computers ISBN: 978-1-61804-056-5 185

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Page 1: Analyzing the Influence of Strategic Information … the Influence of Strategic Information Systems Planning for Improving the Supply Chain Management Function Mehdi bagheri, Payam

Analyzing the Influence of Strategic Information Systems

Planning for Improving the Supply Chain Management Function Mehdi bagheri, Payam Paslari

Department of management, branch, Islamic Azad University ,Iran.)

Abstract-Today, supply chains encountered with instability in the environmental factors due to

increased competition and technology changes. On the other hand, entering the information systems,

Strategic Information Systems Planning (SISP) emerged to integrate the organization to such changes.

This study aims to provide a model for supply chain management (SCM) using SISP process. This model

prepared for improving the performance of supply chain management described by several indices.

Finally, there have been provided 4 hypotheses on proposed stages with the accuracy of them tested.

There are used the views of 200 superior management of information organizations through Iran

discussing the sales in fiscal year, 2006 to test these hypothesis. In conclusion, the results have been

analyzed and discussed based on the designed model.

Keywords: Strategic Information Systems Planning (SISP), Supply Chain Management (SCM),

1 Introduction Today, the changes in the priorities of end

users, world trade liberation, internet, e-

commerce, increased tendency to outsourcing

and even environmental issues have been

discussed in studies related to supply chain

management. On the other hand, global

competition market and changes in the needs of

customers caused organizations to deal with

improving the supply chain function (amid et al,

2006).

A supply chain includes a networks

comprising from participants and different

operational canals in and out of the organization

influencing on the suitability of supply chain

outputs (Teck- Yong Eng. 2006).

The main objective of activities related to the

supply chain is the customers’ satisfaction such

that provides them with their related product

with maximum quality, minimum cost and

timely.

In supply chain, for improving the internal

processes of supply chain, members must

coordinate with other chain members (Vicky

Manthou et al. 2004).

Figure 1 schematically indicates the supply

chain. As indicated, supply chain processes are

related to the linkage points of organization with

peripheral area.

Nowadays, an efficient supply chain is a

potential way for maintaining the competitive

advantages and improving the organizational

performance. Thus, the competition is not

between the organizations but between supply

chains and this indicates that the more effective

the performance of supply chain, the more

improved is its efficiency (Suhong Li et al,

2004); this results in more concentration of

employees on the main business activities.

On the other hand, the role of information

systems on organizational function changed

effectively and today information systems make

Recent Researches in Circuits, Systems, Communications and Computers

ISBN: 978-1-61804-056-5 185

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value for organization (Choon Seong Leem,

Bumyongoh, 2001).

Information systems play role in integration

and cooperation between different parts of

supply chain and so the performance of this

system directly influence on the performance of

a supply chain. Studies indicate that most

successful organizations use e-commerce to

improve their customer services and information

quality.

Strategic planning of information systems is

defined as a process for determining a basket of

PC programs protecting the organization’s

business. In today’s competitive market and

complicated economy, SISP is discussed as a

vital factor for most organizations and it is not

surprising when IT and IS management rank it

as the highest managerial choice (Henry E. New

Jirk, et al, 2005).

According to mentioned subjects and

influence of SISP on organizational performance

as well as interaction of organizational

performance on the performance of supply

chain, this study aims to examine the relation

between above mentioned subjects and provide a

model for effectively planning the supply chain.

2 Literature Review 2-1- Role of Information Systems (IS) in

Supply Chain

According to the studies about the role of

information systems in supply chains, existing

literatures grouped into six main categories

(table 1) (A. Gunasekaran, E. W.T. Ngai).

• SISP in supply Chain

Strategic planning for IT-based supply chain

is a main and fundamental role of organizations.

This indeed is a long term plan for the

performance of information systems in supply

chain system.

• Infrastructure of IT in Supply Chain

Lacking enough knowledge about

infrastructure or IT required for themselves,

organization may fail when modeling their

business. Infrastructure includes software,

hardware and type of system needed for IT in

the chain.

• IT and Knowledge Management in

Supply Chain

When we have activity in a IT-based world,

knowledge employees must participate in

activities coming with value added. IT and

Knowledge management needs a systematic

approach or framework for training the

employees for executing the team work and

innovation. IT management needs planning,

development and launching the decisions

regarding to the business processes and

organizational objectives.

• Launching the IT in Supply Chain

This requires the approach of project

management and including formation of teams

for planning and launching the IT projects. It

must be mentioned that for launching the IT, the

support of superior management is as important

as the technical and financial support.

• Virtual Organizations and Supply Chain

Virtual organizations formed on the basis of

outsourcing concept. Such organizations seeking

for competitive advantage aiming to being

flexible and remaining responsive to the

requirements of market change. The relation

between virtual organization and internet results

in pay more attention to the needs of superior

management by supply chain.

The object of this study is SISP in supply

chain. Therefore, here there are discussed some

literature in details.

2-2- SISP in Supply Chain

Today organization focus on strategic

planning aiming to develop the plans and long

term changes in order for improving their

competitive situation. SISP must support long

term objective and goals of supper chain based

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on the flexibility and responsiveness to the

necessities of market changes. For example, IT

will facilitate the organization and cooperation

in the chain by accessing to correct and timely

information. Cerpa & Verner (1998) studied on

the SISP in great organizations in Australia.

They analyzed SISP by different factors such as

ones influencing on SISP, the effect of IS

maturation on SISP and key factors in SISP.

Table 1- grouping the existing papers about role of information systems in supply chain (A.

Gunasekaran, E.W.T)

Group References

SISP in supply chain

infrastructure of IT in supply chain

e-commerce and supply chain

IT and knowledge management in supply chain

Launching IT in supply chain

Virtual organizations and supply chain

IT must result in integration between

commercial partners and can help making a

virtual organization. Turowski (2002) states that

“integration isn’t made easily made but needs

changes in the processes and renovation of some

old structures. SISP is one of the subjects always

considers process reengineering among all

beneficiaries, for this reason it can provide a

proper bed for launching the supply chain

management in the organizations. Determining

the strategic dimensions of influence of IT on

supply chain management is an important issue

always considered by managers. In SISP, this

has been indicated in prioritizing the activities

and projects (Talluri, 2000).

Today, one can search for the effect of IT in

information systems. MRPs generation is one of

the prominent examples of great effects of

making coordination in supply chain. By

reducing the negative points of manufacturers

and suppliers, these systems could provide the

organizations with competitive advantage and

this is what SISP is seeking for (Zimmerman,

2000). Thus, the thought and approach of supply

chain management have always interacted to

each other and each one played role for the

development of another one.

To approve the effect of ISS on supply chain

management, it is necessary to consider the role

of IT strategy on supply chain. Today price

plays important role for continuance of presence

globally. Mainly, the supply chain management

made because one can remove the activities

without value added and it causes the

organizations to supply their products by low

prices. IT in all stages could both reduce the cost

of processes and help better decision making.

CAD&CAM systems and electronic supply

systems and web-based systems are accounted

as such effects.

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The role of SISP in supply chain

management has been considered of different

perspectives. For example, two Greece

researchers believe that for properly using the

concepts of SISP in supply chain, it is better to

use Fuzzy recognition maps instead of old tools

(Karadaras& karakos, 1999). Using such tools

can make creativity and synergism in the

organization and also prevents defensive

movements in the future. It must be always

stressed that such tools must be easily used and

accepted by superior management of the

organization.

Although there are so many studies in the

field of interactions of SISP and SCM, but there

are no enough information about the effects of

SISP on SCM. The planning part plays

important role in SCM. But there is mostly paid

attention to the outputs with less attention to

suitable factors to planning. For this reason, this

paper focused more to this subject and tried to

first approve this effect and then recognize some

influencing factors.

2-3- Supply Chain Management (SCM)

SCM defined in different forms literally and

some of its definitions are as below.

SCM is the coordinated action between

goods and services, information an financial

beginning from raw materials and ending to

supplier, manufacturer, wholesaler, retailer, and

end user.

Upon the definition, SCM includes providing

the integrity of business key processes from raw

materials supplier to end user on the products,

services and information that come with value

added for customers (Suzanne de Treville et al.

2004).

The most important point in the supply chain

is that besides goods and services, supply chain

includes dynamic flow of information between

different steps.

2-4- Steps of Decision Making in Supply

Chain

Supply chain decisions grouped based on the

time and operational considerations. Time-based

decision makings can be categorized into three

groups, strategic (long term), tactical (mid term)

and operational (short term). Upon the

operational considerations, there are four main

points of decision making in SCM including:

supply, manufacturing, distribution and logistics

(S.Biswas, Y. Narahari, 2004).

In another point of view, the stages of time-

based supply chain separated into three stages,

design, planning and operational (Sunil Chupra,

Peter Meindel, 2001). In the design stage of

supply chain, a company makes decision how to

structure its supply chain and how the process of

a step conducted. A company must ensure that

the configuration of supply chain can support the

strategic objectives of the company during this

stage. The supply chain design decisions made

usually for long term and it is not economic for

the company to replace it in short term.

Decisions made in this stage come with strategic

nature such as place of production, production

capacity, products and types of information

systems that must be used in this field.

In the planning stage, company set up a

collection of operational policies determining

the short term duties of the company. Decisions

made in this stage are based on this point that

configuration of supply chain is fixed. This

configuration has made a limitation and must be

observed during this stage. This stage begins by

anticipating the demand of next year.

Operational planning is the final stage in

SCM. Supply from which place, production

outsourcing, provision and inventory (portfolio)

policies are some of such problems being

discussed in this stage. In this stage the time

horizon is weekly-based or daily-based and

during this stage company may consider the

personal demand of customers. In this stage

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there are disposed activities such as allocating

the personal demands to the inventory or

producing or allocating an order to a special

transportation state.

Because operational decisions made in short

term, so there are mostly less unreliability for

demand information. During the operational

stage the goal is that regarding to the limitations

in the configuration and policies of planning, the

unreliability will be reduced and performance

will be improved.

2-5- Measures of Supply Chain Function

For improving the performance of supply

chain during the time it is necessary to measure

it in given intervals. For accurate assessment, it

is needed to design a number of indices in this

field. For assessing the performance of supply

chain, there have been provided more indices.

This paper tries to sum such views and apply

more frequently used measures.

2-6- Strategic Information Systems

Planning (SISP)

SISP defined such that it is a process for

determining a basket of PC programs that must

be effectively along with the organizational

strategy and has the power of making the

competitive advantage against rivals for

organization (Doherty; 1999).

Table 1- measures of SCM

Measure Description Reference

Customer’s

satisfaction

- Flexibility

- Time to response

the customer

Rohit

Bahtnagar

and Amirk

S, Sohal,

2005

Costs of

supply chain

- Finance related cost

and capital return

- Cost of information

processing

Rohit

Bahtnagar

and Amirk

S, Sohal,

2005

Order

planning

- Time of order

supply

- Route of customer

demand

Injazz J.

Chen

Antony

Paulraj,

2003

The role and efficiency of information

systems in the organization is developing and

investment in this field became more important

and SISP turned to one of the main executive

activities in the field of information technology

and information systems (Galliers, 1993;

Newkirk et al., 2003).

SISP plays vital role to helping the

organizations for avoiding the opportunities loss,

reworking and resources waste (Lederer and

Sethi, 1996).

This is a continuous activity enabling the

organization to determine the priorities of

information systems development. Such projects

made for making the capacity of influencing on

the competitors or along with business goals.

The process of formulating the information

system planning in the organization helps

planners to seeking for the opportunities and

discovering the information in the organization.

One of the main objectives of SISP in the

organization is determining the opportunities for

registering and documenting the knowledge in

the organization. Today, the biggest challenge in

the organizations is that we need know if the

information in our hand are qualified and this

can be summarized in flexibility, accuracy, time

saving, proportion, validity of source and its

completeness (Ward & Pepard, 2000).

SISP results in anticipating the changes, thus

by this sense, we may develop a plan less

influenced by the outcome of changes. This

makes the commitment and trust in the superior

management of the organization (Henry E. New

Kirk et al. 2005).

In the strategic awareness stage, we focus on

the planning process to attain proper knowledge

about competitors, sources, customers and

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legislators. Organizations must carefully

organize the teams with higher knowledge and

skills. In this stage, superior management may

promote the organizational trust and maintain

the financial support of the project.

In the stage of analyzing the situation, by

accurately studying the business, organizations

and information systems, we can find better

knowledge about organizational necessities.

Studying the external medium of business and

information technology media for obtaining

better knowledge about organization is another

work may help in this stage to provide better for

this planning.

The third stage is the understanding of

strategy. Strategy sense provides more actual

alternatives by determining and evaluating the

opportunities. Determining the objectives of

information technology let organization to align

the future objectives of business and information

technology.

The next stage in SISP is preparing the

strategy. Preparing the strategy be accurately

determining the plan (processes, architecture and

projects) more likely estimate the planning

objectives. Better priority results in more

possibility for applying the plan and it provides

better chance for estimating the objectives.

The final stage is launching the strategy that

more considering the change management and

executive plan, results in better execution.

3 Methodology In this study there was used the opinions of

200 top managers of information system through

Iran on 2006. For this reason, there was

designed a questionnaire by the help of related

experts. Likert Spectrum was used as a scale for

evaluating the opinions of experts.

The methodology of this study is of

surveying (measurement) type and based on the

literature reviews, there proposed a model for

two stages of supply chain including design and

planning.

a. Hypothesis

3-1-1- Hypotheses of Designing Phase

Hypothesis 1- high level of attending to the

strategic awareness during supply chain design

results in improved performance of SCM

Hypothesis 2- high level of attending to

situation analysis in the stage of supply chain

design results in improved performance of SCM

Hypothesis 3- high level of attending to

strategy sense in the stage of supply chain

design results in improved performance of SCM

3-1-2- Hypotheses of Planning Phase

Hypothesis 4- high level of attending to

strategy preparation in the stage of supply chain

design results in improved performance of SCM

Table 2- stages and activities of SISP (Mintaz, 1997)

Stage Activity

Strategic awareness Determining the key planning subjects

Determining the planning objectives

Organizing and planning the teams

Obtaining the superior management commitment

Situation analysis Analysis of current business systems

Analysis of current organizational systems

Analysis of current information systems

Analysis of IT external area systems

Strategy sense Determining the main objectives of IT

Determining the opportunities for improvement

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Evaluating the opportunities for improvement

Determining the high level strategies of IT

Strategy preparation Determining the new commercial processes

Determining the new information technology architecture

Determining new projects

Determining the priority for new projects

Strategy launch Determining the changing management approaches

Determining the practical plans

Evaluating the practical plans

3-2- Preliminary Test

There were sent questionnaires for 20 of top

managements of companies. All these people

had background more than 5 years in the

information systems. In due date, the

questionnaires were collected and tested used

Kronbakh alpha technique.

3-3- Data Collection

The questionnaires sent for 200 top

managements of companies through Iran on

2006. The name of these organizations and their

managers obtained from the Industrial

Management Club of Iran. Totally 93

questionnaires returned back and analyzed.

4 Data Analysis By analyzing the questionnaires there was

determined that most top managers of IT of

prominent organizations had executive

background between 5 to 10 years in the

information systems (table 3).

Table 3- executive background of

managements

Executive

background (yr)

No. of

respondents

Percentage

1-5 22 23.66

5-10 54 58.06

More than 10 17 18.28

Total 93 100

Most top managements of mentioned

organizations had bachelor degree (table 4).

Table 4- education

Education No. of

respondents

Percentage

Up to

associates

4 4.30

Bachelor 52 55.91

Master 31 33.34

PhD 6 6.45

Total 93 100

Most of them were also in the range of 30 to

40 years old (table 5).

Table 5- age range of sample members

Age No. of

respondents

Percentage

20-30 15 16.13

30-40 41 44.08

More than

40

37 39.79

Total 93 100

4- Hypothesis Analysis

The relation between SISP and supply chain

performance was studied in the framework of 4

hypothesis using non-parametric binominal test

and mean test.

The test results indicated very good P-values

for each 4 hypothesis. The mean test also

verified the validity of these results (tables 6 &

7).

Finally there was used Freedman Test to find

which hypothesis has highest effect on the

performance of supply chain (table 8).

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4-1- Strategic Awareness Step

Top managers consider this step very

important during supply chain design and

because the significance level of test is less than

5% so one can accept the hypothesis. Such

conclusion detailed in the mean test.

4-2- Situation Analysis Step

Results indicate that this step influences on

the supply chain performance in the opinion of

managers and because the significance level of

test is less than 5% so one can accept the

hypothesis. Such conclusion detailed in the

mean test.

4-3- Strategy Sense Step

Because the significance level is less than

5%, one can accept the hypothesis. This

conclusion detailed in mean test. According to

the mean test table, the higher score of strategic

awareness (3.39) that is higher than p-value (3).

And because significance level of test is less

than 0.05, one can accept this hypothesis by

95% confidence.

4-4- Strategy Preparation Step

According to the mean test table, the higher

score of strategic awareness is (3.67) and is

more than p-value (3), thus the significance level

is less than 0.05 and this hypothesis can be

accepted by 95% confidence.

Table 6- statistical measures for Binominal test of hypotheses

Hypothesis Actual P P-value Error Significance

H1 0.82 0.5 0.05 0.00

H2 0.73 0.5 0.05 0.00

H3 0.87 0.5 0.05 0.00

H4 0.92 0.5 0.05 0.00

Table 7- statistical measures for Mean Test of hypotheses

Hypothesis Mean Standard deviation Significance level P value Calculated t

H1 3.52 0.4146 0.00 3 12.306

H2 3.387 0.3876 0.00 3 9.630

H3 3.399 0.3047 0.00 3 12.508

H4 3.677 0.3370 0.00 3 19.386

Table 7- statistical measures for Freedman Test

Hypothesis SISP Mean rank Ranking

H1 Strategic awareness 2.84 2

H2 Situation analysis 2.34 3

H3 Strategy sense 1.96 4

H4 Strategy preparation 2.86 1

5 Conclusion

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SCM is one of the most powerful operational

paradigms for improving the competitive

advantage of producing and servicing

organizations (A. Gunasekaran, W.C. Chang,

2004).

By current trend, today the organizations are

not important but their value added in the supply

chain and its management is important. On the

other hand, increasing the globalization and

competition internationally and emergence of

new technologies like IT, past experiences fared

(Michael Harvey, R, glen Richey, 2001).

On the other hand, by emergence of IT, SISP

has been prepared to response to the unreliability

and alienation of organization with IT. This

study tried to propose a model for improving the

designing and planning in SCM using SISP

process.

The important point in supply chain

management is the improvement of performance

through the chain. For this reason, this paper

focused on indices with higher performance and

frequently used. The model prepared is a spiral

model; that is, in any stage the previous stages

have been also considered and revised. Thus,

one can ensure that ambient changes may less

influence the SCM.

Finally by statistical test for hypothesis, all 4

hypotheses verified. According to the study, one

can conclude that designing and planning the

supply chain can be influenced by SISP and

activities conducted during preparation of SISP

can be used as a proper guide for this.

Activities conducted in the strategic

awareness such as obtaining the needs of top

managers of organizations, determining the

major goals of organization and organizing the

teams all influence on the stage of supply chain

design. According to this hypothesis it is

concluded that supply chain design team must

consider the needs of top managers and major

goals of organization determined in the strategic

awareness stage and must also use the opinion of

SISP teams who are familiar with the

performance of organization and even use them

in the chain design.

In situation analysis stage, accurately

examining the business, organizations and IT,

one can obtain better knowledge about

necessities of organization. In chain design,

considering the documentaries of this stage

provide the planning team with faster

recognition of organization and they must spend

more time for special subjects of supply chain.

Therefore, according to the test results of this

hypothesis, supply chain planning team must

accurately analyze the situation and use them for

planning the supply chain. In the strategy sense

stage, the main objectives of IT and related

strategies will be prepared. Based on the

influence of this stage on supply chain planning,

planning team must determine the type of

required technology based on such objectives

and strategies. The documentaries of this stage,

indeed, can be applied as a proper guide for

choosing the type of proper technology in supply

chain. By results of strategy sense stage, one can

ensure that there is needed adaptation between

SISP and type of technology used in supply

chain.

Preparing the strategy by accurately

determining the plan (processes, architecture and

projects) can estimate more likely the objectives

of planning. In this stage the new architecture of

IT will be formed and type of organizational

architecture can influence on the supply chain

planning. Therefore, planners require being

skilled in strategy and architecture of IT before

planning and choosing their method based on

developed strategies and systems. In this stage

new commercial processes are also determined.

This can provide a proper bed for effective

planning and launching the supply chain.

Generally, table 8 indicates the summary of

results of hypotheses:

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Table 8- summary of results

Hypothesis Results

H1 Accepted

H2 Accepted

H3 Accepted

H4 Accepted

6 Recommendations This study tried to specifically examine the

influence on SISP in each stages of supply

chain. Therefore, we will deal with it in the next

paragraphs.

a. Recommended Alternatives for

Improving the Supply Chain Planning

• When forming the designing team and

supply chain planning it is better several persons

of SISP team participate in. this is because such

people have been involved in the major

strategies of the organization and are familiar

with planning in different aspects of

organizational performance. In addition,

presence of such people assures this subject that

obtained plan for supply chain can first “be

coordinated with strategies of IT development in

organization” and second “prepared actually and

based on the existing organization situation”.

• When designing the supply chain,

reviewing the documentaries of situation

analysis can be more helpful for project team to

recognize the organization. The analysis stage in

SISP aims to collect the details about business

for complementing the recognition. Using above

mentioned documentaries, supply chain planning

team can know the organization fast and spend

more time for special subjects of supply chain.

This will also end to the adaptation of modeling

views and results in moving the project along

with route determined for organizational

development.

• The goals of SISP are obtained based on

the needs. Such goals also documented by

holding several meeting and after verified by top

managers; therefore, one can conclude that goals

passed from several filters and indicating the

real opinions of managers. Therefore, this may

eliminate need to more energy by project team

and organization’s employees and can be only

determined by holding two meetings among.

• One of the important factors in SISP is

SWOT model. This model plays important role

and indicates the weakness and strength,

opportunities and threats (SWOT) of

organization). When designing the supply chain,

it is very important noting to the weakness and

strength. Weaknesses of chain result in making a

bottleneck in its operation and slowing down the

movement of financial, physical and

informational currents. Regarding to the

technology opportunities one can also establish

the arrangement of chain such that enjoying

them, there can be made a higher flexibility and

awareness of potential threats can eliminate

most strategic errors in planning and maintain

the supply chain stability.

• Another important point when designing

the supply chain is considering the basket of

technologies provided in the SISP as well as

priorities provided in this field. If designing is

based on the systems with less priority for

organization, it will be gradually set aside. It

must be stressed that better and updated

technology for designing the supply chain may

not necessarily be the best choice for supply

chain of organization and its commercial

partners, but the technology is the best one that

is prioritized by organization and organization

strategy is based on using it.

• One of the activities applied in SISP is

comparative studies. In such studies, the IT

related to the organization business will be

recognized and some of them will be proposed

based on the situation and characteristics of

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organization. When designing the supply chain,

the documentaries of comparative studies can be

very fruitful and a source of idea processing for

designers and planners.

b. Alternatives recommended for

improving the Supply Chain Planning

• The planning stage in supply chain deals

with anticipating the future demand and

planning for meeting its needs. Such anticipation

is conducted majorly and based on past statistics

but by developing the SISP, the activity of

organization will be gradually developed and

therefore previous data may not have a proper

estimation for the future. Therefore, it is needed

to pay more attention to the decisions and

information projects planned in the organization.

This cause the abrupt changes in demand cannot

be effective on the plan. Using new IT

architecture, the demand periods will be

shortened, then the major planning of supply

chain will be changed as well and so it is

necessary more courses for reviewing instead of

one course.

• Using new IT and technologies,

recording the order and following it up will be

conducted as fast as possible. Information

systems result in reducing the uncertainty of

ordering duration and thus it will increase the

possibility of success. The type of organizational

strategy and system used here will be more

considered. The type of IT strategy and related

systems for development form the basis of

planning for supply chain because using each of

information systems, the type of behavior of

planning parameters will be also changed. The

technology planned in the documentary of SISP

has direct influence on estimations needed in the

supply chain planning. Therefore, SISP

determines the methods used for estimating the

demand as well and the better the bed provided

by technology, the better estimation the planners

will have. Therefore, planners required to be

skilled in IT strategy of organization before

planning and choose their method based on the

strategies and systems developed; because

selecting a highly accurate method without

proper infrastructure for receiving the initial data

may practically results in failure

7 Theoretical Model In this paper, there has been proposed a

model based on the existing literatures and

opinion of top managers of companies. All

variables of model and their specification

formed based on literature reviews (figure 3).

Model provided in this section contains two

main stages. Stages forming this model are

based on the staged of supply chain planning

and any step obtained from SISP.

The first step of this model is designing

stage. This stage mainly includes organizational

strategic problems and dealing with the

generalization of such problems in the supply

chain area. In this stage, the aim is providing a

strategic recognition of competitors, suppliers,

customers, legislators and all beneficiaries of

supply chain.

Second stage is planning stage. As indicated

in SISP, this stage comprises four stages.

Determining the supply chain processes, supply

chain architecture, and type of communications,

and projects must be provided in the supply

chain and the priority of such projects comprises

the steps of this stage. Therefore, in this stage,

the structure of supply chain and its architecture

is formed and there is obtained a work plan for

SCM.

This model includes a spiral model such that

in any stage some of works done in the previous

stage will be redone and revised. Thus,

management can ensure that changes applied in

any stage have also applied in the previous

stages and plan is properly integrated.

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Questions the influence in improvement of Supply Chain Performance

1 The support of top manager of supply chain planning in SISP Very low Low Average High Very high

2 Paying attention to key subjects determined in SISP Very low Low Average High Very high

3 Organizing and planning the IS expert teams in ISIP Very low Low Average High Very high

4 Considering the goals determined in IS strategic plan in SISP Very low Low Average High Very high

5 Grouping and considering the expectations of top managers of IT in

SISP Very low Low Average High Very high

6 Analysis of current situation of business in SISP Very low Low Average High Very high

7 Analyzing the current IS in SISP Very low Low Average High Very high

8 Analyzing the weakness and strength in SISP Very low Low Average High Very high

9 Analyzing the Modern IT in SISP Very low Low Average High Very high

10 Analyzing the IT infrastructure in SISP Very low Low Average High Very high

11 Considering the main objectives of IT in SISP Very low Low Average High Very high

12 Considering the high level strategies of IT in SISP Very low Low Average High Very high

13 Determining the opportunities for improving the existing technology

in SISP Very low Low Average High Very high

14 Evaluating the opportunities for technology improvement in SISP Very low Low Average High Very high

15 Considering the IT architecture in SISP Very low Low Average High Very high

16 Determining the new business processes in SISP Very low Low Average High Very high

17 Determining the changes made in requirements of IS in the

framework of separate projects in SISP Very low Low Average High Very high

18 Changing the priority of projects defined in SISP Very low Low Average High Very high

Figure 3- model proposed for supply chain management process using SISP

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