Information Systems Strategy
Why do we need one (and, if
so, how)?
Strategic
planning has almost become an unfashionable term in today’s volatile operating
environment. Today, we all tend to adopt the “ready, fire, aim” philosophy.
That is fine, when a bullet is cheap: not so good when the reactive firing costs
many millions by committing you to the wrong technology path.
So,
knowing where you are going as an organisation is still important. It is just as
important with information systems where not only are your needs changing, but
the whole information technology environment is itself changing even more
rapidly. As the world gets smaller and faster, the companies that can use
information best will win. A
strategy for this is essential.
We
are therefore often asked whether it is really possible to have an information
system strategy that can be developed rapidly and cost effectively, focused on
what practically needs to be done?
A
Pragmatic Approach
We
have found that such practical information systems strategic plans need to
address the following areas:
-
the
organisation’s purpose and direction, particularly as it impacts on
information technology needs
-
technology trends
and issues potentially impacting on the organisation
-
current
information technology situation analysis
-
policy
issues relating to the use of information technology, including the
management of information technology
-
implications
in the previous material for current and proposed applications
-
recommended
technology architectures (with reasons and implications of alternatives
where options exist)
-
implementation
priorities and approach
-
cost
/ benefit material to the extent appropriate within the scope of the work -
at a high level at the planning stage
This
needs to be undertaken in an iterative way aimed at providing a “high level”
early cut, followed by refinement through more detailed investigation only where
it is of demonstrable benefit. For that reason we normally recommend the work be
divided into four phases so you can checkpoint progress and results after each
phase:
Phase
1: Review of Existing Material and Situation – a scoping review
Phase
2: Investigation
of Key Needs and Issues
Phase
3: Development of
Strategic Outline
Phase
4: Establish Scope
of Implementation Projects and Complete Plan
We
find the phases to some extent run concurrently, but at the conclusion of each
phase there is an opportunity to review progress and redefine the scope of the
balance of the work if appropriate.
So what needs to be done?
Phase
1: Review Existing Material and Situation
In
this phase you should review past information systems strategic planning
material, information on the current systems infrastructure and supporting
business processes environment, and material on the current organisational focus
and direction. You should identify critical issues for review at the conclusion
of this phase to ensure subsequent phases are focused on the most important
areas for the organisation.
Phase
2: Investigation of Key Needs and Issues
This
phase should investigate and document key information systems infrastructure
needs at both the operational and executive management level. These are compared to the current delivered functionality of the existing
application systems. Although primarily aimed at gathering the information
required to develop the IS Strategy you should also seek to identify any issues
that could be resolved by short term actions outside of the strategy.
At the conclusion of this phase the principal focus and
scope of the strategy, including particular policy, architecture or application
directions which will underpin the strategy, should be determined.
In most organisations today, we find the information
systems strategy is driven by the application architecture ie top down from the
business (because of the comprehensive functionality in many core products). It
is still necessary, however, to integrate that with the technology architecture
view – ie bottom up from the technology. Even the almost boring bits of “how
do we deliver all this additional information over the network” is still
critical!
Phase
3: Develop Strategy
During
this phase you develop an initial draft of the strategy encompassing the
following at a level appropriate for the agreed scope.
-
the
organisation purpose and direction, particularly as it impacts on
information technology needs
-
technology
trends and issues potentially impacting the organisation
-
current
information technology situation analysis
-
policy
issues, including the management issues, relating to the use of information
technology
-
implications
in the previous material for current and proposed applications
-
recommended
technology architectures (with reasons and implications of alternatives
where options exist)
This
needs management and, potentially governing body, approval before moving to the
final phase.
Phase
4: Establish Scope of Implementation Projects and Complete Plan
From
the analysis carried out in the previous three phases and the business needs and
priorities you then identify implementation projects to apply the strategy to
meet the requirements. It is necessary to scope the projects to the level
appropriate for inclusion in the final version of the plan.
Then, (shock, horror!) all you need to do is select the
right products, implement them, manage the organisation changes, manage the
scope creep, and still bring it in within budget. But, we didn’t say it was
easy, just that it has to be done – or you will be firing expensive
bullets in the dark!
(A
version of this article was prepared by Brent Sutherland for The Simpl Group and
published in Local Government Magazine)
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