Strategic alignment: Leveraging information technology for transforming organizations

1993 ◽  
Vol 32 (1) ◽  
pp. 472-484 ◽  
Author(s):  
J. C. Henderson ◽  
H. Venkatraman
Keyword(s):  
Information Technology ◽  
Strategic Alignment

Assessing Business-IT Allignment Maturity

2011 ◽  
pp. 99-128 ◽  
Author(s):  
Jerry Luftman
Keyword(s):  
Information Technology ◽  
Strategic Alignment ◽  
Strong Support ◽  
Senior Management ◽  
Working Relationships ◽  
Strategic Choices ◽  
It Alignment ◽  
Business Functions ◽  
Alignment Maturity ◽  
Relationship Of

Strategic alignment focuses on the activities that management performs to achieve cohesive goals across the IT (Information Technology) and other functional organizations (e.g., finance, marketing, H/R, R&D, manufacturing). Therefore, alignment addresses both how IT is in harmony with the business, and how the business should, or could, be in harmony with IT. Alignment evolves into a relationship where the function of IT and other business functions adapt their strategies together. Achieving alignment is evolutionary and dynamic. It requires strong support from senior management, good working relationships, strong leadership, appropriate prioritization, trust, and effective communication, as well as a thorough understanding of the business and technical environments. The strategic alignment maturity assessment provides organizations with a vehicle to evaluate these activities. Knowing the maturity of its strategic choices and alignment practices make it possible for a firm to see where it stands and how it can improve. This chapter discusses an approach for assessing the maturity of the business-IT alignment. Once maturity is understood, an organization can identify opportunities for enhancing the harmonious relationship of business and IT.

Strategic Alignment Between Business and Information Technology

2011 ◽  
pp. 3582-3588
Author(s):  
Fernando José Barbin Laurindo
Keyword(s):  
Information Technology ◽  
Value Chain ◽  
Business Performance ◽  
Business Processes ◽  
Continuous Process ◽  
Strategic Alignment ◽  
It Effectiveness ◽  
Strategic Value ◽  
It Applications ◽  
Important Position

Information technology (IT) has assumed an important position in the strategic function of the leading companies in the competitive markets (Porter, 2001). Particularly, ecommerce and e-business have been highlighted among IT applications (Porter, 2001). Two basic points of view can be used for understanding IT’s role: the acquisition of a competitive advantage at the value chain, and the creation and enhancement of core competencies (Porter & Millar, 1985; Duhan, Levy, & Powell, 2001). Several problems have been discussed concerned with IT project results in effectiveness of their management. Effectiveness, in the context of this article, is the measurement of the capacity of the outputs of an information system or of an IT application to fulfill the requirements of the company and to achieve its goals, making this company more competitive (Shimizu, Carvalho, & Laurindo, 2006). There is a general consensus about the difficulty of finding evidence of returns over the investments in IT (the “productivity paradox”), even though this problem can be satisfactorily explained (Farrell, 2003). Carr (2005) defends the idea that IT in itself has no more strategic value, since it is so widely disseminated that it could not be a source of strategic differentiation anymore. In order to better use these investments, organizations should evaluate IT effectiveness, which allows the strategic alignment of objectives of implemented IT applications and their results with the company business vision (Shpilberg, Berez, Puryear, & Shah, 2007; Laurindo & Moraes, 2006). Besides, it must be highlighted that if IT applications are associated with changes in business processes, it is possible to notice greater impacts in business performance (Farrell, 2003). According to Benko and McFarlan (2003), three aspects must be taken into account about IT strategic alignment: IT projects portfolio, business objectives, and the constantly changing situation of business environment. Thus, the comparison and evaluation of business and IT strategies and between business and IT structures must be a continuous process, since the company situation is constantly changing to meet market realities and dynamics.

Strategic Alignment, IT Value, and Organizational Analysis

2011 ◽  
pp. 73-101
Author(s):  
Eng K. Chew ◽  
Petter Gottschalk
Keyword(s):  
Information Technology ◽  
Resource Allocation ◽  
Information Systems ◽  
Strategic Alignment ◽  
It Value ◽  
It Resources ◽  
Corporate Elites ◽  
Scope Of The Firm ◽  
Allocation Decisions ◽  
Resource Allocation Decisions

Over the last several decades, strategy researchers have devoted attention to the question of how corporate elites (i.e., corporate executives and directors) affect corporate strategy. The CEO as a person in position shapes the scope of the firm, while the CIO as a person in another position shapes the scope of IT in the firm. Jensen and Zajac (2004) proposed and tested the notion that while differences in individual characteristics of corporate elites may imply different preferences for particular corporate strategies such as diversification and acquisitions, these basic preferences, when situated in different agency contexts (e.g., CIO, CEO) generate very different strategic outcomes. Strategy can simply be defined as principles, a broad based formula, to be applied in order to achieve a purpose. These principles are general guidelines guiding the daily work to reach business goals. Strategy is the pattern of resource allocation decisions made throughout the organization. These encapsulate both desired goals and beliefs about what are acceptable and, most critically, unacceptable means for achieving them. While the business strategy is the broadest pattern of resource allocation decisions, more specific decisions are related to information systems and information technology. How should IS/IT resources be allocated within business organizations? How can business ensure the IS/IT resources will deliver the desired business value? Hann and Weber (1996) see IS/IT strategic planning as a set of activities directed toward achieving the following objectives: 1. Recognizing organizational opportunities and problems where IS/IT might be applied successfully 2. Identifying the resources needed to allow IS/IT to be applied successfully to these opportunities and problems 3. Developing strategies and procedures to allow IS/IT to be applied successfully to these opportunities and problems 4. Establishing a basis for monitoring and bonding IT managers, so their actions are more likely to be congruent with the goals of their superiors 5. Resolving how the gains and losses from unforeseen circumstances will be distributed among senior management and the IT manager 6. Determining the level of decision rights to be delegated to the IT manager. Empirical studies of information systems/information technology planning practices in organizations indicate that wide variations exist. Hann and Weber (1996) found that organizations differ in terms of how much IS/IT planning they do, the planning methodologies they use, the personnel involved in planning, the strength of the linkage between IS/IT plans and corporate plans, the focus of IS/IT plans (e.g., strategic systems vs. resource needs), and the way in which IS/IT plans are implemented. In this chapter, we will review the principles of strategic alignment and discuss in detail the various methods for IT value and organizational maturity analysis.

Introduction to Strategic Alignment

2001 ◽  
pp. 1-24 ◽  
Author(s):  
Ratmond Papp
Keyword(s):  
Information Technology ◽  
Strategic Alignment ◽  
Business Environment ◽  
Business Strategies ◽  
Theoretical Construct ◽  
Single Industry ◽  
Alignment Model ◽  
Technology Strategies

The concept of strategic alignment is more than two decades old (McLean and Soden, 1977; IBM, 1981; Earl, 1983; Mills, 1986; Brancheau and Wetherbe, 1987; Parker and Benson, 1988; Henderson and Venkatraman, 1990; Dixon and John, 1991; Niederman, et. al., 1991; Watson and Brancheau, 1991; Liebs, 1992; Luftman, Lewis and Oldach, 1993; Goff, 1993), however it has never been more timely than in today’s fast-paced, dynamic business environment (Papp, 1998; Rogers, 1997). The original alignment model was a largely theoretical construct that studied only a single industry (Henderson & Venkatraman, 1990; Henderson & Thomas, 1992) but has since been adapted for use by virtually any industry looking to integrate their business strategies with their information technology strategies (Papp, 1995; Luftman, Papp, & Brier, 1995).

scholarly journals The strategic alignment between Information Technology and Business: a study in a Brazilian state bank

2009 ◽  
Vol 7 (2) ◽  
pp. 111-124
Author(s):  
Gilberto Perez ◽  
Marcel Ginotti Pires ◽  
Amélia Silveira ◽  
Moisés Ari Zilber
Keyword(s):  
Information Technology ◽  
Strategic Planning ◽  
Quantitative Method ◽  
Strategic Alignment ◽  
Statistical Techniques ◽  
Descriptive Research ◽  
Brazilian State ◽  
Technology Strategies ◽  
Structured Questionnaire

The objective of the study was to evaluate the area of Information Technology (IT), of a great Brazilian state bank, related to the strategic planning of the institution. The descriptive research, with quantitative method, was executed by means of structured questionnaire. The citizens selected for this research were the professionals who hold positions of management, coordination, analysis business-oriented and analysis of systems of the studied bank. The collected data were processed by statistical techniques, with the application of SPSS V13. The results demonstrate the understanding that the staff of the IT company has in relation to the business policies and the strategies of the institutional administration. The results show, among other things, the strategic alignment of IT and technology strategies as factors that define the role of the area of IT to the business of the institution.

scholarly journals IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) Approach

2011 ◽  
Author(s):  
Damnithan Al-Majali ◽  
Zulkhairi Md. Dahalin
Keyword(s):  
Information Technology ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Strategic Alignment ◽  
Data Sets ◽  
Sustainable Competitive Advantage ◽  
Exogenous Variables ◽  
Equation Modelling ◽  
Values And Beliefs ◽  
Leadership Structure

In many review articles or studies, the researchers have encouraged further exploration on the causal links between Information Technology (IT) investments and a firm’s sustainable competitive advantage. The outcomes of empirical studies have been inconclusive, which is to a certain extent due to the omission of IT-business strategic alignment. Indeed, strategic alignment has emerged as one of the most important issues facing business and IT executives all over the world. This paper reports on the empirical investigation of the success factors, which consist of leadership, structure and process, service quality, and values and beliefs, which are representative of the culture gap between IT strategy and business strategy. A questionnaire survey among 200 IT managers was carried out and 172 data sets were collected. This represented a 86% response rate. After a rigorous data screening process including outliers, normality, reliability and validity, 172 data sets were ready for structural equation modelling (SEM) analysis. Confirmatory Factor Analysis (CFA) was performed to examine the composite reliability, convergent validity and goodness of fit of the individual constructs and measurement models. The revised structural model demonstrates the relationships between all the four exogenous variables and IT-business strategic alignment, and all the four exogenous variables and sustainable competitive advantage. In addition, regarding the revised model there are two mediating effects of strategic alignment in the relationship between leadership, structure and process, service quality, values and beliefs, and sustainable competitive advantage.   Keywords: Strategic alignment, alignment gap, information technology, sustainable competitive advantage.

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