Aligning Business and IT Strategies in Multi-business Organizations

2015 ◽  
Vol 30 (2) ◽  
pp. 101-118 ◽  
Author(s):  
Peter Reynolds ◽  
Philip Yetton

The alignment of business and information technology (IT) strategies is an important and enduring theoretical challenge for the information systems discipline, remaining a top issue in practice over the past 20 years. Multi-business organizations (MBOs) present a particular alignment challenge because business strategies are developed at the corporate level, within individual strategic business units and across the corporate investment cycle. In contrast, the extant literature implicitly assumes that IT strategy is aligned with a single business strategy at a single point in time. This paper draws on resource-based theory and path dependence to model functional, structural, and temporal IT strategic alignment in MBOs. Drawing on Makadok's theory of profit, we show how each form of alignment creates value through the three strategic drivers of competence, governance, and flexibility, respectively. We illustrate the model with examples from a case study on the Commonwealth Bank of Australia. We also explore the model's implications for existing IT alignment models, providing alternative theoretical explanations for how IT alignment creates value.

2011 ◽  
pp. 670-690
Author(s):  
Youakim Badr ◽  
Nanjangud C. Narendra ◽  
Zakaria Maamar

Traditional solutions to address interoperability issues are mainly process-centric so that consistent interactions among collaborating enterprises are ensured. These solutions examine interoperability from a technological perspective with focus on exchanging information messages between distributed and heterogeneous applications. However, interoperability from a business perspective has been overlooked in the past due to the complexity of reconciling diverse business strategies, organizational constraints, and IT infrastructures. Business interoperability denotes the ability of diverse enterprises to collaborate together to coproduce added-value products and services. In this chapter, a new line of thinking is promoted whereby interoperability is data-centric instead of process-centric. Business interoperability is dealt with by adopting business artifacts that are able to cross organizational boundaries, and by introducing a stack of three layers - strategy, service, and resource. Artifacts are self-contained business records that include attributes, states, and life cycles that reflect the changes in these states. The artifact concept not only describes a business entity, but also encompasses knowledge about what to process without explaining how to do it. The shift from processes to artifacts makes business interoperability “quite simple’’ to deploy and renders collaboration easy to manage and analyze. The chapter also introduces several interaction patterns that regulate the exchange of artifacts between enterprises. The ideas and proposals in this chapter are discussed via a realistic case-study to demonstrate how business people can seamlessly manage their day-to-day activities and intuitively construct interoperable and sustainable collaborations at the business and technological levels.


Author(s):  
Kevin Johnston

The alignment of business strategy with IT strategy has been a concern of chief information officers (CIOs) (Berkman, 2000; Croteau & Bergeron, 2001; Crowley, 2001), chief executive officers (CEOs) (Armstrong, Chamberlain, Moore & Hart, 2002; Mesoy, 1999), academic researchers (Henderson & Venkatraman, 1999; Reich & Benbasat, 2000; Tallon & Kraemer, 2000), and research companies (Broadbent, 2000; Croteau & Bergeron, 2001; Meta Group, 2001) since the age of vacuum tubes. In surveys (Mesoy, 1999) of CIO concerns, alignment has consistently been rated as a major issue. A Cutter study reported that business-IT alignment was “the number one problem facing IT” (Crowley, 2001).


2021 ◽  
Vol 11 (3) ◽  
pp. 85-93
Author(s):  
Yasmeen Shamsi Rizvi ◽  
Raksha Garg

Business organizations have been facing an unprecedented level of criticisms for being one of the prime contributors to the deterioration of environmental health. These criticisms have prompted organizations to make environmental sustainability a part of their business strategy. The case study on the beverage companies show how organizations are making a shift from anthropocentrism to sustaincentrism. Here we have mainly focussed on how PepsiCo and Coca-Cola have transformed their image from the one that contributes to bad health of the environment to the one that operates in an environment-friendly manner and how their environmental strategies have helped them in balancing the needs of stakeholders while earning profits.


2019 ◽  
Vol 4 (2) ◽  
pp. 111 ◽  
Author(s):  
Muhammad Imam Nashiruddin

This study aimed to explore the development of business strategies in a turbulent business environment. The study involved leaders of several telecommunication business units in Indonesia as research respondents. The research used the descriptive and the explanatory survey method using Partial Least Square-Path Modeling (PLS-PM). The results showed that although the business strategies of the telecommunication companies in Indonesia were included in the good category; however, they were still not optimal because were mostly created through competitive strategy. Whereas, the cooperative strategy turned out to have a more dominant contribution to create superior competitive advantage in a turbulent business environment. The study also discussed problem solving on how the companies should formulate the business strategy in a turbulent business environment and recommended on how to maintain the sustainability of the telecommunication industries in Indonesia.


2020 ◽  
Vol 2 (1) ◽  
pp. 44-53
Author(s):  
Srikrishna Chintalapati

Five more days to go until the new year, it was a warm, pleasant and busy morning in Dubai, United Arab Emirates. As the clock ticked 10 times, Aditya Bhagat (Aditya), a young, ambitious, passionate entrepreneur, is seemingly intrigued and curious. Exactly 30 minutes from now, he is scheduled to meet Surya Prasad (Surya), his friend, counterpart and co-founder of BankBuddy ( www.bankbuddy.ai ). Half the office is already empty as most of the associates had left for the year-end holidays, Aditya wanted to use this time to carefully brainstorm, methodically plan and articulate his business strategies and get them ready for execution in the new year. Marketing strategy is of particular importance, arguably the most critical and complex element that also needs the most attention in the overall exercise. He clearly understands that their current business strategy of being headquartered in Dubai and staying focused on artificial intelligence 1 (AI) powered solutions for the banking industry has paid off so well in their current geographical focus—Middle Eastern and African countries. The time now to look at next wave of business expansion. This inadvertently raises the decision dilemma of choosing the most productive and promising growth path—where and what to expand? Should they expand into more geographies? Or should they diversify the product line and add more offerings? In which country and city should they set up the new base (centroid) and which countries do they target for expansion? Which are the other promising products/offerings they should be adding to their existing lines of business? Aditya knows that today is the time to address the ‘elephant in the room’—where to invest my marketing money?


Author(s):  
Peter Ping Li ◽  
Steven Tung-lung Chang

This chapter proposes a conceptual framework of e-business strategy. It argues that such a framework must be holistic, dynamic, and dialectical. This framework will assist both researchers and practitioners regarding the key issues of e-business strategy. Further, a case study of Haier from China reveals that all firms need to learn how to design effective e-business strategies that should be built on a sound organizational form or business model. The case of Haier also suggests that the local firms from the developing countries need to be creative in formulating e-business strategies in order to operate effectively in the underdeveloped e-business environment. Strategic alliance is especially critical for the local firms with regard to their e-business success.


2015 ◽  
Vol 10 (2) ◽  
pp. 201
Author(s):  
Melati Diyani Putri ◽  
Marbudyo Tyas Widodo

This research was conducted to compare SWOT and SPACE analysis in setting business strategy and formulate an appropriate functional strategy for corporations based on the internal and external environment of the company. The necessary data in this study were obtained through the dissemination of questionnaires, in-depth interviews, and observations directly to the company then analyzed using the case study method. The results in this study indicate that the alternative strategy of SWOT analysis is better to apply for the company than the analysis of SPACE. Then using QSPM matrix that retrieved the most appropriate business strategies for companies based on their environment is an extension of the market both in the geographic or demographic.Key words : Business strategy, SWOT and SPACE analysis, Outsourcing companies


2015 ◽  
Vol 14 (4) ◽  
pp. 24-40
Author(s):  
Felipe Mendes Borini ◽  
Jackeline Ferreira

The article questions the challenges of internationalization of Brazilian scientific journals in the administrationarea. The aim of this paper is to analyze how two theories, that over the past decade gained great space to explainthe internationalization of companies, namely the theory of networks and institution, to help us understand theinternationalization of the journals, and how the analysis of the phenomenon of globalization of journals raisesnew proposals for the internationalization process when analyzed by these two theoretical perspectives. Thetheoretical framework is based on the network theory, and on the institutional environment. By means of aqualitative research methodology, we attempted to understand what the journal's inclusion in the network is andwhat understanding the publisher has in relation to the institutional environment and how this understandingleads to the internationalization process. One perceives as a result a strong pressure from the institutionalenvironment from the country of origin and a low rate of inclusion of journals in networks. These results raisethe challenge of an articulated policy of the institutions from the countries of origin and internationalization ofthe journals. This builds up the importance of an intersection between the theory of the institutional environmentcombined with the theory of the business networks to explain the business units internationalization movement,namely, academic journals.


2017 ◽  
Vol 10 (2) ◽  
pp. 221
Author(s):  
Annisa Pratamasari

In this paper, I argue that some entertainment companies of South Korea offer a distinctive business strategy in this globalized world; thus, they can widen their market share, increase profits, and sharpen their competitive edge. SM Entertainment,which is one of the Hallyu Wave pioneers in music industry, has showed its distinct way to succeed in the currently saturated market of idol groups in South Korea. Choosing Hallyu Wave from international business perspective as the main topic of this writing was due to its increasing importance in music industry and its growing influence in South Korean government policies. Therefore, I shall descriptively address the strategies formulated by SM Entertainment to compete in the domestic and international music industry from its way to groom their idol groups to its way to ‘sell’ them.This paper offers some business strategies of SM Entertainment of which some other companies could learn from; namely the distinct traineeship system, successful B2C strategy, and profitable B2B cooperation.


Author(s):  
Constantinos Giannoulis ◽  
Eric-Oluf Svee ◽  
Jelena Zdravkovic

A core concern within Business-IT alignment is coordinating strategic initiatives and plans with Information Systems (IS). Substantial work has been done on linking strategy to requirements for IS development, but it has usually been focused on the core value exchanges offered by the business, and thus overlooking other aspects that influence the implementation of strategy. One of these, consumer preferences, has been proven to influence the successful provisioning of the business's customer value proposition, and this study aims to establish a conceptual link between both strategy and consumer preferences to system requirements. The core contention is that reflecting consumer preferences through business strategy in system requirements allows for the development of aligned systems, and therefore systems that better support a consumer orientation. The contribution of this paper is an approach to establish such alignment, with this being accomplished through the proposal of a consumer preference meta-model mapped to a business strategy meta-model further linked to a system requirements technique. The validity of this proposal is demonstrated through a case study carried out within an institution of higher education in Sweden.


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