Consider an enterprise information system, also known as a tech stack or digital footprint. It interacts with every element within the organisation and incorporates everything from the hardware to the binary. Data is processed and organised to become information which can be used as the basis for good decision-making at all levels of the organisation.

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The tech stack collects the data and then nurtures its translation into information and the pathways it takes to its user. Knowledge is available to stakeholders inherently or from external sources—it is information that unleashes knowledge so it can be best utilised for competing. There is a relationship between education and the capabilities of the digital environment. This is captured in the following diagram:

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This not only applies to education in the classroom but also education in the workplace. Bearing in mind that Moore’s Law can lead to exponential improvement in digital capabilities, the importance of using the tech stack for strategic advantage cannot be overstated. As a starting point for managing and embracing the power of information systems, it is worth delineating them into their three common parts.

  1. Transaction processing system (TPS) The TPS collects data in its simplest form to represent the occurrence of any significant event. It is the domain of the operational staff, and in commerce, it is generally the point of sale. The amounts and product codes are stored in a data repository for reorganisation into useful information. Broadening our scope, liken this to a smart watch with any relevant health activity representing the 'point of sale' event. This triggers the data to information pathway and results in information about the health of the wearer, being structured and accessible in the right formats, at the right times. This analogy should help to clarify that our snowballing digital environment is consistently creating new possibilities.

  2. Decision support system (DSS) Where the TPS collects the data, the DSS extracts and displays the relevant information and primarily supports middle managers with decision-making. The patterns that emerge equip stakeholders to make better choices in situations with some or complete uncertainty and containing variables. To be most effective, clear communication channels should open between operations TPS and management DSS—this is usually facilitated by a Data Analyst in any established enterprise. This helps identify the information that is of most value for decision-making and ensuring the relevant data is collected and organised accordingly.

  3. Executive support system (ESS) The ESS is for the upper tiers of management and mostly in the form of a dashboard to be used by the senior executives. What these stakeholders consider to be the 'key performance indicators' for the organisation and its departments, are represented here. They are measured so they can be managed. Information pathways between DSS and ESS should be open, uncluttered, and agile when required. The aim of this level of an information system is to unleash the knowledge of senior management to develop strategy to deliver the enterprise mission and goals.

The following diagram shows another level of organisation of a company’s internal digital footprint. All the platforms and apps used by the organisation are supported by a central Enterprise Resource Planning system (ERP), to ultimately enable creation of an ESS dashboard. Each arm of a business has its section of the IS defined as its functional area information system (FAIS). FAIS can be linked to each other, but all are connected to the ERP.

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Relevant and successful operations will have some version of this at their digital core, and they will be considering and reviewing this system periodically to remain this way. The significance of this language and these foundational principles should be respected by innovators as they develop ideas and bring them to the marketplace. Start ups that commercialise will have this structure at a basic level by accident or design. To flourish and compete, it will need to be scalable. By way of analogy, any good coach will tell you that you can’t win a race with your start, but you can lose it.

Information systems exist in any business with a phone and computer—they are extremely useful but can cause stress. They are enabled by technologies such as the Internet of Things, a sharing society, digital ecosystems, and digital agents. In the same way the content of this article relates to IS best practice, realisation of these benefits requires correct organisational strategy on the pathway to competitive advantage.