Information systems

strategy

Daniel Piret

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Information systems strategy

• Information systems strategy should be viewed as supplementing business

strategy, helping to apply technology better in order to underpin the aims and

competitive advantages pursued. As with any strategy, it must identify the future

situations towards which a company wishes to move (potentially quite different

from the current situation), defining a framework for these objectives

(consistency) and using Strategic Planning to chart an appropriate direction for

the movements to be achieved in order to reach those goals.

• One often finds that companies with well implemented commercial, product or

distribution strategies nonetheless neglect their information systems, or leave them

solely in the hands of technical staff.

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Information systems strategy

• The importance of having in place the right information systems strategy

design, ensuring that this occupies an appropriate mind share at executive level,

should not be based simply on the proportion of an organisation's budget

which IT costs represent: consideration must be given to the benefit of

systematically planning business strategies on the basis of appropriate information

systems.

• In conceptual terms, an information systems strategy is built up in a similar way to

any other business strategy, through an external, market-facing component and how

this is to be incorporated, and a separate internal component which adapts your

organisation and resources in order to achieve your goals.

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Information systems strategy

From the external perspective, an information systems strategy may be broken down

into:

Technology Sphere

As with a corporation's business area, which takes decisions about the

products and services it delivers to market, the technology sphere

focuses on those technologies which are critical in developing and

consolidating the business they support.

TechnologyCompetencies

These are the attributes which IT contributes to the development or

consolidation of the business, in the same way as those competencies

which allow a company to stand out from the competition in terms of the

products and services it releases onto the market. This includes such aspects

as stability, interconnectivity, flexibility, etc.

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Information systems strategy

From the internal perspective, three core components would be:

1. IT Architecture: the hardware, software and communications configurations

used to define policies, rules and standards. As with business infrastructure, this

would comprise the administrative structure.

2. IT Processes: which define the portfolio of applications supporting business

operations, running on the aforementioned architecture.

3. IT Capacities: options regarding the recruitment, training and development of

the people handling and operating IT resources.

IT Architecture

IT Processes IT Capacities

This series of articles focuses more on the external perspective, in other words the

sphere and competencies involved in technology, and how they can be directed by

means of a management model.

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