Decision support systems and strategic planning: information technology and SMEs' performance

Abstract

The implementation of decision support systems (DSS) is considered crucial to sustain competitive advantage because the business environment is getting more and more turbulent. Especially, small-medium enterprises (SMEs) face challenges such as the lack of conscious planning, the lack of strategic decision making and sharing information and it is difficult to increase profitability. As effective strategic management and decision-making is necessary, strategic information systems planning (SISP) is used to collect information and to support the decision makers to formulate and implement the right strategy to develop DSS. Information systems (IS) executives concentrate on technical issues and ignore the strategic plans of DSS. The aim of this paper is to examine how SISP contributes to a greater extent of profitability in SMEs. Data was collected using questionnaires to IS executives in SMEs, particularly in North Greece. The results indicate that managers should focus on implementing Situational Analysis with greater meticulousness, so that they can implement Strategy Conception and Strategy Implementation Planning with greater agility rather than now. This paper not only expands the current knowledge regarding the significance of SISP but also it enables managers to make the process better.