How to create an information system

What is an information systems strategy? 

No matter what kind of organisation you are, you'll have some form of business system (usually multiple) – it may just be a set of macro enabled spreadsheets, it could be a cloud based software solution or it could be a monolithic ERP solution.

Businesses need data to run. Data needs to be stored somewhere, shared and manipulated in order to turn it into information. Every business system, bespoke or otherwise, is purely a mechanism for pushing data from A to B via C, for showing information, for sharing information, for using raw data to calculate information or for auditing information. Portals, websites, ERP systems, planning systems, data warehouses, transactional systems – they are all 'Information Systems' – their purpose being to share information with the relevant people who need it, at the points they need it to cause action, which allow decisions to be made and for the business to function as it needs to. 

Why do I need an effective information system strategy? 

Managing information in a business can be challenging. Most organisations rely on multiple systems, often designed for specific tasks, leading to duplicated, unsynchronised data, reporting inconsistencies, and regulatory headaches. Frequently, systems are implemented in isolation due to executive pressure to "get something done," or as stopgap measures that end up becoming permanent. This results in a fragmented, inefficient ecosystem of systems that don’t integrate, wasting time, money, and effort. Sound familiar?

The root cause often lies in the reactive nature of organisations striving to remain competitive and compliant. While agility and responsiveness are necessary, they often lead to disparate systems and disconnected data. To overcome this, organisations must adopt a strategic approach—one that identifies information needs, defines a cohesive systems architecture, and ensures agility without compromising data integrity.

Although there’s no quick fix, a structured roadmap to assess, plan, and implement an effective information architecture can transform how your organisation manages information. Here's an example strategy to help you get started.

Information system strategy example

Step 1: Understand the Business Goals

The first step is to grasp the organisation’s strategy and key drivers. This ensures clarity on financial targets and customer-focused initiatives. With these defined, internal processes and people-related issues can be aligned to support the overarching strategy.

We use tools such as Treacy and Wiersema’s Discipline Driver model (1) to determine whether the organisation is product-led, customer-focused, or operationally efficient. Collins’ Hedgehog Concept (2) clarifies core values and purpose, while Kaplan and Norton’s Balanced Scorecard (3) and Strategy Map (4) offer insights into financial, customer, internal, and learning and growth perspectives.

This step establishes the context for the organisation’s information needs, highlighting why specific information is crucial and its impact on business objectives if unmet.

Step 2: Identify Information Needs

Once the business’s goals are clear, the next step is to define its information needs.

This involves mapping key functional areas and major business processes, which helps identify stakeholders, their information requirements, and how that information is used.

Step 3: Assess the Current State

Understanding the starting point is critical. Assess existing systems, data touchpoints (manual or automated), and key functions. Create systems and data maps to identify gaps, duplication, inefficiencies, and inaccuracies.

Step 4: Review and Consolidate

Analyse the current state to address overlaps, gaps, and future needs. Focus on:

• Duplicate data: Reduce redundancy.
• Missing data: Identify where and how to capture it.
• Inconsistent data: Address manipulation at multiple points.
• Underperforming systems: Decide whether to replace or improve.
• Manual processes: Explore automation opportunities.
• Integration points: Map data flows between the organisation and third parties.

Categorise systems by function, identifying those to retain, replace, improve, or integrate.

Step 5: Define an Enterprise Architecture

Combine findings into a conceptual enterprise architecture. This should define:

• Core systems by function.
• User access mechanisms (e.g., portals, web apps).
• Business process workflows.
• Data orchestration for integrity.
• Business intelligence tools for reporting and analysis.

The goal is a future-ready information system architecture that supports the organisation’s needs.

So, following this process you'll have an idea of the information systems architecture you need in place to support your organisation – job done? Not really – now comes the arguably harder task of delivering that vision…