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 Between Business and Information Technology

2011 ◽  
pp. 20-28
Author(s):  
Fernando Jose Barbin Laurindo ◽  
Marly Monteiro de Carvalho ◽  
Tamio Shimizu
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.

Information Technology Strategic Alignment

2005 ◽  
pp. 1503-1507
Author(s):  
Fernando José Barbin Laurindo ◽  
Marly Monteiro de Carvalho ◽  
Tamio Shimizu
Keyword(s):  
Information Technology ◽  
Competitive Advantage ◽  
Value Chain ◽  
Core Competencies ◽  
Strategic Alignment ◽  
It Applications ◽  
Points Of View ◽  
Important Position ◽  
Role Of It

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).

Information Technology Strategic Alignment

2011 ◽  
pp. 186-199 ◽  
Author(s):  
Fernando J.B. Laurindo ◽  
Marly M. de Carvalho ◽  
Tamio Shimizu
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Building Materials ◽  
Continuous Process ◽  
Strategic Alignment ◽  
Theoretical Models ◽  
Effectiveness Evaluation ◽  
Strategic Issue ◽  
It Applications ◽  
Different Levels

This chapter presents a study about the effectiveness of Information Technology (IT) applications in Brazilian companies. IT has been considered a strategic issue for successful companies. On the other hand, the discussion about the results of Information Technology (IT) applications considering the return over the investments and the effectiveness of their management still remains controversial. Effectiveness evaluation allows strategic alignment between IT and company business visions and should be analyzed as a continuous process. In order to discuss these issues, in this chapter, a comparative analysis about IT strategic impacts is performed using different theoretical models. The study is based on multiple cases: financial services, telecommunications, and building materials companies. Interviews with the main actors from different levels of the organization hierarchy have been done.

Information Technology Business Continuity

2011 ◽  
pp. 2010-2015
Author(s):  
Vincenzo Morabito ◽  
Gianluigi Viscusi
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Strategic Management ◽  
Competitive Advantage ◽  
Business Processes ◽  
It Management ◽  
Business Continuity ◽  
Data Quality Management ◽  
Time To Market ◽  
Strategic Value

Continuity could be and should be strategic for the business competitive advantage. Besides natural disaster, from blackout to tsunami, businesses face in daily activities critical challenges in IT management for assuring business continuity; for example, business continuity management results must be strategic, because of the infrastructural, organizational, and information systems changes that are required to assure compliance with regulatory norms (see, e.g., the impact of Basel II norms in financial sector), or must have and maintain a time-to-market advantage (disasters can facilitate competitors in a first mover perspective). Nevertheless, business continuity is at present often synonymous with risk management at the IT level, disaster recovery at the hardware level, or in the best case?at the data management level?with data quality management. These perspectives fail to unveil the strategic value of IT business continuity as a framework assuring alignment of strategy, organization, and systems, allowing a competitive advantage in a dynamic competitive environment. Moreover, even when business continuity, under these perspectives, has become one of the most important issues in IT management, there still appears to be some discrepancy as to the formal definitions of what precisely constitutes a disaster, and there are difficulties in assessing the size of claims in the crises and disaster areas. Taking these issues into account, we propose: (a) an analysis of the different facets of the concept of business continuity, and (b) an integrated framework for strategic management of IT business continuity. To these ends, we move from the finance sector?a sector in which the development of information technology (IT) and information systems (IS) have had a key impact upon competitiveness. Indeed, banking industry IT and IS are considered “production,” not “support” technologies. The evolution of IT and IS has challenged the traditional ways of conducting business within the finance sector. These changes have largely represented improvements to business processes and efficiency but are not without their flaws, in as much as business disruption can occur due to IT and IS sources. The greater complexity of new IT and IS operating environments requires that organizations continually reassess how best they may face changes and exploit these later for organizational advantage. As such, IT and IS have supported massive changes in the ways in which business is conducted with consumers at the retail level. Innovations in direct banking would have been unthinkable without appropriate IS, and merger and acquisition (M&A) initiatives represent the ideal domain to show what value can lead strategic management of IT business continuity. Taking these issues into account, we point out the relevance of continuity for maintaining customers, and time-to-market in complex and evolutionary competitive environments. Due the relevance of IT to maintain a valueadded continuity, our contribution aims to clarify the concept of IT business continuity, providing a framework, exploiting the different facets that it encompasses, and showing the strategic implications to the field of IS&T.

scholarly journals Human Resources or Information Technology: What is More Important for Companies in the Digital Era?

2016 ◽  
Vol 7 (1) ◽  
pp. 35-45 ◽  
Author(s):  
Lejla Turulja ◽  
Nijaz Bajgorić
Keyword(s):  
Information Technology ◽  
Structural Equation ◽  
Business Performance ◽  
Business Processes ◽  
Performance Outcomes ◽  
Equation Modeling ◽  
It Capability ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Changing Knowledge

AbstractBackground:Companies can improve their business performance, increase revenues and reduce costs by enhancing their information technology (IT) capability. On the other side, there is an increasing importance of human resource management (HRM) practices related to IT utilization, which are important for the business performance of a company in the rapidly changing knowledge-based economy.Objectives:The objective of this paper is to analyze the relations among IT capability, HRM capability and the firm’s performance outcomes.Methods/Approach:The paper uses survey data and Structural Equation Modeling to analyze the relationships among IT capability, HRM capability and firms’ performance.Results:This paper reveals that IT capability to some extent determines firms’ business performance but it plays more important role in enhancing HRM capability. In addition, HRM capability significantly impacts business performance.Conclusions:The findings indicate that managers should not focus on allocating resources only for IT investments. In order to achieve better business performances, these technologies need to be used to support all business processes including HRM activities.

scholarly journals ANALISA MATURITY LEVEL PENCAPAIAN OPTIMASI LAYANAN TI PERGURUAN TINGGI

CCIT Journal ◽  
2019 ◽  
Vol 12 (1) ◽  
pp. 53-60
Author(s):  
Friden Elefri Neno ◽  
Kusrini Kusrini ◽  
Henderi Henderi
Keyword(s):  
Information Technology ◽  
Information System ◽  
Business Performance ◽  
Business Processes ◽  
Service Level ◽  
Maturity Level ◽  
Work Process ◽  
It Service ◽  
Effectiveness And Efficiency ◽  
Academic Information

Information technology (IT) is a very important requirement for all activity activities because it is believed to increase the effectiveness and efficiency of the work process. To achieve this, it is necessary to optimize the IT servants' good and correct so that the existence of IT can support the success of work in private agencies. government and education in achieving its goals. Therefore Stella Maris SimStimikom wants to know the success of the existence of information technology that supports the process of optimization of service to all academics in a university which is an unavoidable demand, the existence of a college academic information system that serves to serve the academic process of students and lecturers is a must. Measurements of the purpose of information systems is to contribute to information technology on business performance at Stella Maris Sumba Stimicom College to measure the extent of alignment between business processes, it is necessary to need an information system audit that requires a standard, then the standard used is COBIT 4.1 with the final result obtained at the maturity level value of the IT service level is at 2.51 with the description Repeatable but intuitive

scholarly journals TOGAF for designing the enterprise architecture of LAZISMU

2018 ◽  
Vol 2 (2) ◽  
pp. 58-64 ◽  
Author(s):  
Jefree Fahana ◽  
Ahmad Azhari
Keyword(s):  
Information Technology ◽  
Information Systems ◽  
Value Chain ◽  
Enterprise Architecture ◽  
Business Processes ◽  
Business Goals ◽  
Architecture Framework ◽  
Application Architecture ◽  
Organization Analysis ◽  
Architecture Development

LAZISMU as an amil zakat institution has an important role in collecting and managing zakat for public welfare. The existence of Law No. 23 of 2011 and the Minister of Religion Regulation No. 333 of 2015 on Guidelines for Granting Permits for the Establishment of Zakat Institutions requires that the management of zakat, infaq, and sadaq (ZIS) funds be transparent, accountable and prioritize professional principles. For this reason, there needs to be support from information systems and information technology to achieve these business goals. Information systems and technology will be utilized optimally if the development is aligned with the business objectives of the organization. Enterprise Architecture (EA) is a bridge to harmonize the business needs of an organization with Information Systems and Information Technology. Enterprise architecture planning at the LAZ has been designed using The Open Group Architecture Framework (TOGAF) with Architecture Development Method (ADM). Data collection is done by interviewing and making direct observations of the organization. Analysis tools used are the Unified Modelling Language (UML) method and the Value Chain method. The results of this study are blue print business architecture, data architecture, application architecture so that it can support the business processes that exist in LAZISMU.

scholarly journals Information Technology And The Performance Of Financial Companies In South Korea

2011 ◽  
Vol 17 (2) ◽  
Author(s):  
Thomas G. Calderon ◽  
Sooduk Seo ◽  
Il-Woon Kim
Keyword(s):  
Information Technology ◽  
South Korea ◽  
Economic Performance ◽  
User Satisfaction ◽  
Business Processes ◽  
Univariate Analysis ◽  
Positive Association ◽  
It Effectiveness ◽  
Financial Growth ◽  
Insight Into

<p class="MsoNormal" style="text-align: justify; margin: 0in 37.8pt 0pt 0.5in;"><span style="mso-bidi-font-style: italic;"><span style="font-size: x-small;"><span style="font-family: Batang;">An underlying premise of investments in information technology (IT) for internal business processes is that these investments add value to the enterprise. This study examines the relationship between the effectiveness of IT and financial growth of publicly traded financial companies in South Korea. IT effectiveness is measured through a survey administered to middle managers that focused on user satisfaction, support for internal business processes, and system reliability. The study provides insight into the degree of effectiveness of IT employed in Korean banks as perceived by bank managers, and also demonstrates the link between IT effectiveness and economic performance. Univariate analysis of the data shows a statistically significant association between IT effectiveness and financial growth. The paper offers limited insight into the thesis that enterprises with high business information intensity will show a positive association between effective IT and economic performance.</span></span></span></p>

Examining the Roles of Virtual Team and Information Technology in Global Business

2016 ◽  
pp. 1-21 ◽  
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Information Technology ◽  
Organizational Performance ◽  
Business Performance ◽  
Strategic Plan ◽  
Virtual Team ◽  
Global Business ◽  
Strategic Goals ◽  
It Applications

This chapter aims to examine the roles of virtual team and information technology (IT) in global business, thus describing the theoretical and practical overviews of virtual team and IT; the importance of virtual team in global business; and the importance of IT in global business. The applications of virtual team and IT are necessary for modern organizations that seek to serve suppliers and customers, increase business performance, strengthen competitiveness, and achieve continuous success in global business. Therefore, it is essential for modern organizations to examine their virtual team and IT applications, develop a strategic plan to regularly check their practical advancements, and immediately respond to virtual team and IT needs of customers in modern organizations. The chapter argues that applying virtual team and IT has the potential to increase organizational performance and reach strategic goals in global business.

Examining the Roles of Virtual Team and Information Technology in Global Business

2020 ◽  
pp. 501-521
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Information Technology ◽  
Organizational Performance ◽  
Business Performance ◽  
Strategic Plan ◽  
Virtual Team ◽  
Global Business ◽  
Strategic Goals ◽  
It Applications

This chapter aims to examine the roles of virtual team and information technology (IT) in global business, thus describing the theoretical and practical overviews of virtual team and IT; the importance of virtual team in global business; and the importance of IT in global business. The applications of virtual team and IT are necessary for modern organizations that seek to serve suppliers and customers, increase business performance, strengthen competitiveness, and achieve continuous success in global business. Therefore, it is essential for modern organizations to examine their virtual team and IT applications, develop a strategic plan to regularly check their practical advancements, and immediately respond to virtual team and IT needs of customers in modern organizations. The chapter argues that applying virtual team and IT has the potential to increase organizational performance and reach strategic goals in global business.

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