Information Technology Strategic Alignment

Author(s):  
Fernando José Barbin Laurindo ◽  
Marly Monteiro de Carvalho ◽  
Tamio Shimizu

Information technology (IT) has assumed an important position in the strategic functioning of leading companies in competitive markets (Porter, 2001). Particularly, e-commerce and e-business have been highlighted among IT applications (Porter, 2001). Two basic points of view can be used for understanding the role of IT: the acquisition of a competitive advantage at the value chain and the creation and enhancement of core competencies (Porter & Millar, 1985; Duhan et al., 2001).

Author(s):  
Fernando José Barbin Laurindo

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.


Author(s):  
Fernando Jose Barbin Laurindo ◽  
Marly Monteiro de Carvalho ◽  
Tamio Shimizu

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.


CCIT Journal ◽  
2010 ◽  
Vol 4 (1) ◽  
pp. 57-69
Author(s):  
Henderi Henderi ◽  
Yeni Nuraeni ◽  
Junaidi Junaidi ◽  
Rahmad Hidayat

Information technology (IT) is a critical asset for effectiveness organizational governance. Therefore, the organization’s and IT’s and business’s expertise need a good IT governance. IT governance as a tool for aligning IT with business, is required to explain the new role of IT organizations, measuring the contribution of each organization’s components, helping identify the impact and benefits of IT investment which has been done, decision making, and make a better project. Conversely, the IT governance which ineffective can lead to losses of business, impairment of reputation, weaken the ability of competitiveness, lack of precision project, inefficient, quality of production is not in line with expectations, and inability to fulfill the innovation and benefits that were promised. Meanwhile, strategic alignment (in the IT business) which can either creating new opportunities and increased competitive advantage for companies well. Thus, it is necessary to create strategic alignment IT-business and ensure IT governance goes according to planned. This article intends to discusse and provide information about strategic IT-business alignment as one component of good IT governance. Once understood, the directors and CEO can identify opportunities and develop a good strategic alignment to increase IT business alignment in order to ensure companies continuity.


Author(s):  
Fereshteh Ghahremani ◽  
Mohammad Jafar Tarokh

Managing dependencies via coordination is an effective solution for the problems that arise from these interdependencies in supply chains. This can be practical via a set of methods called coordination mechanisms. Numerous coordination mechanisms have been discussed before in literature. This paper develops a new classification of these mechanisms on the basis of information technology (IT) impact on them. This classification proves the important role of IT in better coordinating supply chains and help managers distinguish between coordination mechanisms that are created and improved by information technology and thus lead them to have the best choice based on their infrastructures and organization type.


Author(s):  
Arne Sølvberg

The deep penetration of computers in all realms of society makes technological change the key driver for changing our lives. This will result in a change in approach, from viewing the role of IT as mainly supporting other disciplines, to the integration of IT concepts, tools and theory into modelling theories of the supported disciplines. This chapter discusses some aspects of the relationship between the IT as a modelling discipline, and the modelling disciplines of the domains where IT is applied. IT deals with data and data processes, while application domain models deal with entities of the domain and how they interact. Cross-competence models must deal with both, and with how models of the information technology discipline relate to the various models of the domain disciplines.


Author(s):  
Terry Anthony Byrd

The value of information technology (IT) in today’s organizations is constantly debated. Researchers and practitioners have examined organizations to try to discover causal links between competitive advantage and IT. This paper presents and details a model that depicts a possible connection between competitive advantage and IT. Furthermore, this paper attempts to show how one major component of the overall IT resources, the information systems (IS) infrastructure, might yield sustained competitive advantage for an organization. More precisely, IS infrastructure flexibility is examined as an enabler of “core competencies” that have been closely related to sustained competitive advantage in the research literature. The core competencies enabled by IT that are the focus of this study are mass customization and time-to-market. By showing that IS infrastructure flexibility acts as an enabler of these competencies, the relationship to sustained competitive advantage is demonstrated.


Author(s):  
David L. Bahn

The strategic benefit of IT (information technology) in supporting business functions is often seen as the basis for competitive advantage that is sustainable. The value chain concept has been a handy tool widely utilized in business strategy analysis to match firm competency in performing business activities with the achievement of sustainable marketplace advantage. When it comes to the assessment of the competitive value of information technology, the value chain concept seems to either categorize IT as a support activity or to overly narrow the scope of IT’s role in achieving sustainable competitive advantage. This chapter reviews the concepts of the value chain and sustainable competitive advantage. Short case studies from a number of industries are presented in order to illustrate the limitations of using the value chain to describe information technology’s role in achieving sustainable competitive advantage. These examples demonstrate the subtle and often complex relationship between information technology and competitive advantage.


Author(s):  
Mark R. Nelson

The strategic benefit of IT (information technology) in supporting business functions is often seen as the basis for competitive advantage that is sustainable. The value chain concept has been a handy tool widely utilized in business strategy analysis to match firm competency in performing business activities with the achievement of sustainable marketplace advantage. When it comes to the assessment of the competitive value of information technology, the value chain concept seems to either categorize IT as a support activity or to overly narrow the scope of ITs role in achieving sustainable competitive advantage. This chapter reviews the concepts of the value chain and sustainable competitive advantage. Short case studies from a number of industries are presented in order to illustrate the limitations of using the value chain to describe information technologys role in achieving sustainable competitive advantage. These examples demonstrate the subtle and often complex relationship between information technology and competitive advantage.


2018 ◽  
Vol 8 (2) ◽  
pp. 39-68
Author(s):  
Saibal Kumar Saha ◽  
Ajeya Jha

Supply Chain Management SCM is a very critical part of any business. A well-coordinated SCM can improve the efficiency of the business and help in cost reduction. As information technology (IT) is being used widely across all businesses, SCM can benefit to a large extent by the use of IT. This article reviews a number of papers in this field and suggests research gaps for further exploration. The aim of this article is to review the literature on the role of IT on supply chain management (SCM) with special focus on the pharmaceutical industry and suggest possible gaps from the point of view of researchers and practitioners. The article finds that IT has made a significant impact in improving the efficiency of SCM. But its successful implementation and collaboration with other firms is the key to success for an efficient SCM. Within each category, gaps have been identified.


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