Investigating the Relationship between Strategic Alignment and Information Technology Business Value

2011 ◽  
pp. 1-22 ◽  
Author(s):  
Paul P. Tallon ◽  
Kenneth L. Kraemer
Keyword(s):  
Information Technology ◽  
Significant Relationship ◽  
Business Strategy ◽  
Strategic Alignment ◽  
Environmental Uncertainty ◽  
Strategic Intent ◽  
Business Executives ◽  
Information Systems Strategy ◽  
The Relationship ◽  
Process Level

Although business executives remain skeptical about the extent of payoffs from investment in information technology (IT), strategic alignment or the alignment of information systems strategy with business strategy continues to be ranked as one of the most important issues facing corporations. In this paper, we report on the results of a process-level study to investigate the relationship between strategic alignment and IT payoffs. An analysis of survey data from 63 firms finds a positive and significant relationship between strategic alignment and IT payoffs, a relationship that holds for all firms, irrespective of their strategic intent or goals for IT. However, in exploring minor differences in strategic alignment between firms with different goals for IT, we uncovered evidence of an alignment paradox. This paradox shows that while strategic alignment can lead to increased payoffs from IT, this relationship is only valid up to a certain point beyond which, paradoxically, further increases in strategic alignment appear to lead to lower IT payoffs. Finally, we offer some suggestions for why this paradox might exist, specifically around issues of environmental uncertainty, industry clock-speed, and the need for organizational flexibility

Alignment of Business Strategy and Information Technology Considering Information Technology Governance, Project Portfolio Control, and Risk Management

2018 ◽  
pp. 898-916
Author(s):  
Vincent Kobina Ahene Parry ◽  
Mary L Lind
Keyword(s):  
Information Technology ◽  
Risk Management ◽  
Significant Relationship ◽  
Business Strategy ◽  
It Governance ◽  
Project Portfolio ◽  
It Alignment ◽  
Information Technology Governance ◽  
It Executives ◽  
The Relationship

Information technology (IT) governance is an important component in developing an overall business and IT strategy. Factors to consider in the IT governance and strategy relationship are project portfolio control, risk management. Using a quantitative survey of 201 IT executives a significant relationship was shown between effective IT governance and project portfolio control and risk management. However, the results of the study did not support a significant relationship between effective IT governance and business/IT alignment. Ultimately, this study helped to shed light on the relationship between effective IT governance and project portfolio control as well as provided support to the existing literature on the relationship between effective IT governance and risk.

Alignment of Business Strategy and Information Technology Considering Information Technology Governance, Project Portfolio Control, and Risk Management

2016 ◽  
Vol 7 (4) ◽  
pp. 21-37 ◽  
Author(s):  
Vincent Kobina Ahene Parry ◽  
Mary L Lind
Keyword(s):  
Information Technology ◽  
Risk Management ◽  
Significant Relationship ◽  
Business Strategy ◽  
It Governance ◽  
Project Portfolio ◽  
It Alignment ◽  
Technology Governance ◽  
It Executives ◽  
The Relationship

Information technology (IT) governance is an important component in developing an overall business and IT strategy. Factors to consider in the IT governance and strategy relationship are project portfolio control, risk management. Using a quantitative survey of 201 IT executives a significant relationship was shown between effective IT governance and project portfolio control and risk management. However, the results of the study did not support a significant relationship between effective IT governance and business/IT alignment. Ultimately, this study helped to shed light on the relationship between effective IT governance and project portfolio control as well as provided support to the existing literature on the relationship between effective IT governance and risk.

Developing Business Aligned Knowledge Management Strategy

2011 ◽  
pp. 2631-2645
Author(s):  
El-Sayed Abou-Zeid
Keyword(s):  
Knowledge Management ◽  
Competitive Advantage ◽  
Business Strategy ◽  
Strategic Alignment ◽  
Strategic Choices ◽  
Knowledge Management Strategy ◽  
Knowledge Strategy ◽  
Alignment Model ◽  
Knowledge Strategies ◽  
The Relationship

With the growing awareness of the crucial role that knowledge can play in gaining competitive advantage, several issues with regard to knowledge management (KM) initiatives have challenged executives. The articulation of the relationship between an organization’s competitive strategy and its knowledge strategy is the most eminent. This chapter addresses the issue of how to align knowledge strategy with enterprise business strategy. Based on the premise that the realization of business value from KM investments requires alignment between business and knowledge strategies, the issue is addressed by developing a strategic alignment model for KM. This model, which is based on the Henderson-Venkatraman strategic alignment model, includes the external domains (opportunities/threat) and internal domains (capabilities/arrangements) of both business (B-) and knowledge (K-) strategies and the relationships between them. Furthermore, it provides alternative strategic choices. The model is used to study a KM initiative at Buckman Laboratories.

A Conceptual Model for Aligning IT Valuation Methods

2010 ◽  
Vol 1 (3) ◽  
pp. 36-54 ◽  
Author(s):  
J. Gilbert Silvius
Keyword(s):  
Conceptual Model ◽  
Business Strategy ◽  
Organizational Context ◽  
Strategic Alignment ◽  
Valuation Methods ◽  
It Alignment ◽  
Valuation Method ◽  
Business And It Alignment ◽  
The Relationship

The relationship between IT and value is complex and often disputed. Researchers and practitioners have created numerous models and valuation methods to capture this value. Although payoffs from IT investment are a function of strategic alignment, most of these models do not address the alignment of business and IT as a factor that influences or creates value. This paper explores the role of business and IT alignment in the valuation methods of IT assets and investments. It focuses on the impacts resulting from the use of IT assets, considering the function and nature of the impacts. It also explores the alignment of IT valuation and business strategy. The paper is concluded with the construction of a comprehensive selection model that provides guidance for aligning the IT valuation method with the specific characteristics, impacts and organizational context of an IT asset or investment.

scholarly journals Perancangan Permainan Simulasi (Game Simulation) Untuk Menilai Tingkat Kematangan Strategi Teknologi Informasi terhadap Strategi Bisnis Dengan Metode IT Balanced Scorecard dan Maturity Model COBIT 4.1

2018 ◽  
Vol 3 (2) ◽  
pp. 111
Author(s):  
Agnes Karina Pritha Atmani
Keyword(s):  
Information Technology ◽  
Experiential Learning ◽  
Balanced Scorecard ◽  
Business Strategy ◽  
Strategic Alignment ◽  
Technology Strategy ◽  
Maturity Model ◽  
Maturity Level ◽  
Alignment Model ◽  
Game Simulation

Keselarasan strategi Teknologi Informasi terhadap strategi bisnis sangat dibutuhkan untuk mencapai tujuan bisnis. Pencapaian keselarasan strategi, sebagai suatu proses yang berkelanjutan, membutuhkan dukungan dari Top Management dan fungsi-fungsi lain dalam perusahaan. Penilaian kematangan tingkat keselarasan strategi TI terhadap strategi bisnis akan digunakan sebagai alat ukur untuk menilai tingkat keselarasan strategi TI terhadap strategi bisnis. Nilai tersebut akan digunakan sebagai langkah awal untuk tindakan perbaikan berkelanjutan.Penggunaan permainan simulasi merupakan gabungan dari dua metode experiential learning, yaitu simulasi (simulation) yang dapat melakukan peniruan dari suatu perilaku atau proses dan permainan (game) yang merupakan aktifitas yang kompetitif. Melaui Experiential Learning pengguna permainan dapat melakukan pembelajaran secara aktif dan memperoleh pengetahuan, pemahaman, dan pandangan baru mengenai suatu hal.Penilaian kematangan tingkat keselarasan strategi TI terhadap strategi bisnis akan mengacu pada konsep Strategic Alignment Model yang diperkenalkan oleh Henderson dan Venkatraman dan IT-Balanced Scorecard yang dikembangkan Grembergen dan Bruggen. Keduanya memberikan panduan mengenai model-model yang dapat diimplementasikan di perusahaan. Sedangkan penilaian kematangannya berdasarkan kriteria Maturity Model COBIT 4.1 (Control Objective on Information and related Technology) Kata kunci: Permainan Simulasi, Experiential Learning, Teknologi Informasi, Strategi TI, Strategi Bisnis, Strategic Alignment Model-Henderson & Venkatraman, IT-Balances Scorecard – Grembergen & Bruggen, dan COBIT 4.1 Maturity Model. AbstractThe alignment of Information Technology strategy with business strategy is important to achieve business objectives. Strategy alignment, as an ongoing process, requires support from Top Management as well as from other functions in the company. The assessment of maturity level on the alignment of Information Technology with business strategy becomes the measuring tool to assess the alignment of Information Technology strategy with business strategy. The score, then, will be used as starting point in accomplishing continuous repair action.The use of game simulation is a combination of two experiential learning methods, namely simulation that can perform the imitation of a behavior or process and game which is a competitive activity. Through Experiential Learning game users can actively learn and gain new knowledge, insights, and insights about things.The assessment of maturity level of the aligment of Information Technology with business strategy which applied Strategic Alignment Model concept introduced by Henderson and Venkatraman and IT-Balanced Scorecard by Grembergen and Bruggen. Both have given guidelines about several models that can be implemented at company. Moreover, in order to assess the maturity level, this research uses Maturity Model COBIT 4.1 (Control Objective on Information and related Technology.Keywords: Information Technology, Game Simulation, Experiential Learning, Information Technology strategy, Business strategy, Strategic Alignment Model-Henderson & Venkatraman, IT-Balanced Scorecard-Grembergen & Bruggen, and COBIT 4.1 Maturity Model.

The relationship between business strategy and management entrenchment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Arash Arianpoor
Keyword(s):  
Significant Relationship ◽  
Business Strategy ◽  
Stock Exchange ◽  
Chief Executive ◽  
Developed Countries ◽  
International Standards ◽  
Defensive Strategy ◽  
Content Type ◽  
Management Entrenchment ◽  
The Relationship

PurposeThe present study's main objective is to assess the relationship between business strategy and management entrenchment in listed firms on the Tehran Stock Exchange (TSE).Design/methodology/approachIn this paper, 128 firms have been assessed during 2012–2017. The management entrenchment variable is measured using five factors: management ownership, board independence, chief executive officer (CEO) tenure, managers' compensation and CEO duality.FindingsThe obtained results show a negative and significant relationship between the aggressive strategy of the current year (and that of the previous year) and management entrenchment such that adopting an aggressive business strategy in the current and previous years can debilitate the management entrenchment. Moreover, there is a negative and significant relationship between the current year's defensive strategy and management entrenchment, and employing a defensive business strategy in the current year can also weaken the management entrenchment. At the same time, there is no significant relationship between the previous year's defensive business strategy and management entrenchment.Originality/valueManagerial entrenchment is a determining factor in the economy, and regarding the dominant norms in the emerging markets and developing countries, this factor is different from that of the developed countries. It is more important in some markets, like Iran that is dealing with economic sanctions. On the other hand, Tehran Stock Exchange observes numerous modifications, especially providing financial statements in accordance with international standards that are expected to affect the determination of business strategy in firms.

scholarly journals The impact of contingency fit on organisational performance: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdallah Amhalhal ◽  
John Anchor ◽  
Nicoleta S. Tipi ◽  
Sara Elgazzar
Keyword(s):  
Information Technology ◽  
Performance Measurement ◽  
Performance Measures ◽  
Business Strategy ◽  
Contingency Theory ◽  
Emerging Market ◽  
Performance Measurement System ◽  
Organisational Performance ◽  
Content Type ◽  
The Relationship

PurposeThe research investigates the effectiveness of the performance measurement alignment approach which claims that measurement diversity (multiple performance measures) should be aligned with organisational contingencies to enhance organisational performance.Design/methodology/approachThe theoretical framework is contingency theory. The study is an empirical investigation of the indirect relationship between three contextual factors (business strategy, information technology and organisation size) and organisational performance via multiple performance measures. The results are derived from cross-sectional questionnaire survey data from 132 Libyan companies (response rate of 61%). For data analysis, the research uses mediation regression analysis via Preacher and Hayes' (2004) macro.FindingsThere is a significant indirect effect of business strategy and information technology, but not organisation size, on organisational performance. The measurement diversity approach plays a core mediating role in the relationship between the contingencies and organisational performance.Practical implicationsThe study helps to provide a better understanding of the usefulness of the fit/match between contingencies and Multiple Performance Measures in improving organisational performance.Originality/valueThe empirical evidence supports the central proposition of contingency theory that there is no universally appropriate performance measurement system which applies equally to all organisations in all circumstances. It also provides evidence relating to non–manufacturing and an emerging market context. This research significantly extends the relevant literature by highlighting the relationship between information technology, multiple performance measures and organisational performance. This study is the first to use Preacher and Hayes' (2004) macro to analyse mediation design in the field of contingency-based performance measurement.

Information Technology Usage: The Indian Experience

2004 ◽  
Vol 29 (1) ◽  
pp. 83-92 ◽  
Author(s):  
M P Gupta ◽  
Sanjay
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Supply Chain ◽  
Inventory Control ◽  
Business Intelligence ◽  
Business Strategy ◽  
Information Needs ◽  
Market Place ◽  
Business Executives ◽  
Strategy Transformation

This paper attempts to understand the current state of Information Technology (IT) usage in select Indian organizations based on a questionnaire survey of business executives and IS staff of select IT-savvy organizations. In recent years, rapid changes and developments in the IT domain have created new leaders in the market place. Corporates, the world over, are leveraging on these developments through efficient supply chain, inventory control, and business intelligence applications for gaining an edge over their competitors. The Information System (IS) developed by these organizations is non-replicable thus providing the differentiation. Though Indian companies are aware of concepts such as supply chain, inventory control, etc., the actual implementation of such concepts is not that widespread. Also, the IS function in India is yet to establish itself as a mainstream business function. It is in this context that this paper makes an effort to understand the importance of IT as a key driver for business strategy and recommend to the industry to adopt some of the best practices prevailing in organizations worldwide. The analysis of the responses indicates that there is a discrepancy between the opinions of business executives and IS staff regarding the adequacy of the current IT systems. This situation can be remedied by implementing some of the suggestions which are as follows: The business executives and the IS staff should be located in the same place to integrate IT into the mainstream of business. Business intelligence application needs to be included in the portfolio of applications for business use. The Indian industry needs to be stepped up to the ‘informate’ stage as it is still in the ‘automate’ stage. CIOs have to play an important role by linking IT to business strategy. Information needs of the executives are increasing and necessary steps for imple- menting data warehousing and OLAP solutions need to be taken. Supporting IS should be put in place to facilitate decision-making. Key performance indicators (KPIs) should be clearly identified and incorporated into the IS to monitor the health of the organization. These initiatives are expected to have the following implications: tighter integration of IT with business strategy transformation from the ‘informate mode’ to the ‘transformate’ mode implementation of newer business intelligence tools development of information-based decision-making culture better understanding of organization's KPIs by the IS staff.

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