The Relationship between Business Strategy, IT Strategy and Alignment Capability

2011 ◽  
pp. 130-142 ◽  
Author(s):  
A.J. Gilbert Silvius
Keyword(s):  
Business Strategy ◽  
Business Processes ◽  
Dynamic Environment ◽  
Business Strategies ◽  
It Strategy ◽  
Business Innovation ◽  
Key Factor ◽  
Efficient Information ◽  
The Relationship

A key factor for in company’s success in a dynamic environment is effective and efficient information technology (IT) supporting business strategies and processes. Research has shown that organizations that successfully align their business strategy and their IT strategy outperform their non-aligned peers. This chapter explores the relationship between business strategy, IT strategy, and alignment capability. The author found no conclusive relationship between business strategy and IT strategy. Each business strategy can be supported by all IT strategies, but certain combinations provide a better fit than others. He also found no conclusive relationship between business strategy and alignment capability either. However the author found a clear relationship between IT strategy and alignment capability. The chapter explores this relationship further in a dual case study of two organizations having distinctly different IT strategies. One organization sees IT as an enabler for the business processes with mainly an internal impact, whereas the other organization IT sees as a driver for business innovation that can create competitive advantage in the marketplace. Based upon an assessment of their alignment capabilities, the author found that the company with the innovative IT strategy scored a distinctly higher alignment capability than the company with the essential IT strategy. Although this conclusion may not be surprising, it provides further evidence for the statement that a more progressive IT strategy pairs with a better alignment of business and IT.

scholarly journals Perencanaan Strategis SI/TI Menggunakan Metode Ward and Peppard di Institusi Pendidikan (Studi Kasus: SMK Bina Nusantara Ungaran)

2021 ◽  
Vol 3 (1) ◽  
pp. 96-107
Author(s):  
Galang Krisnawa Bhakti ◽  
Augie David Manuputty
Keyword(s):  
Information System ◽  
Information Systems ◽  
Value Chain ◽  
Business Strategy ◽  
Business Processes ◽  
Information Age ◽  
Vocational School ◽  
Business Strategies ◽  
It Strategy

Business competition in this fast-paced information age has become very tight. especially in the field of education. Thus the organization must have a business strategy that is very mature in order to face the competition. The application of information systems and technology has become one of the most influential business strategies for staying in competition. Bina Nusantara Vocational School has implemented an information system and technology, but apparently it has not run optimally because some parts have not yet implemented an information system. In this study discusses how to plan an IS / IT strategy using ward and peppard methods with supporting analyzes such as Value Chain Porter's, SWOT, and McFarlan's Strategic Grid. Which produces a portfolio of IS / IT that is aligned with the vision and mission and roadmaps of its implementation to support the business processes that are run and make the Bina Nusantara Vocational School excel in education.

The relationship between MNCs’ strategies and executive staffing

2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Global Strategy ◽  
Business Strategies ◽  
Future Research ◽  
Research Approach ◽  
Global Integration ◽  
Content Type ◽  
Managerial Implications ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

Indian study shows high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Business Strategy ◽  
Cost Reduction ◽  
High Performance ◽  
Intention To Leave ◽  
Business Strategies ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
Mediating Role ◽  
The Relationship

Purpose This paper examines the relationship between business strategies and employees’ intention to leave (ITL), through the mediating role of high-performance work system (HPWS). Design/methodology/approach To test their hypotheses, the authors used self-administered questionnaires. They drew up a list of 600 organizations of different nature and structure operating in India that were listed by the Federation of Indian Chambers and Industry. They approved 192 organizations and sent the surveys to 960 executives. They aimed to receive a minimum of one response from an HR executive and two from non-HR executives from each one. In the end, they received 572 useable responses. Findings The study found that high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave (ITL). The two effective approaches were “quality management” and “innovation strategy”, both of which reinforced the adoption of HPWS. But a third approach, a “cost-reduction strategy”, was not shown to be positively correlated with HPWS. Another important finding was that the influence on ITL did not vary across the types, or ownership structures, of the firms. Originality/value The data has lessons for HR departments. First, it shows it is advantageous for firms hoping to retain more employees to invest in HPWS that are consistent with the values of their organizations. A second practical finding is that firms need to take into account the Indian context. A third lesson is HR practitioners should make strong efforts to communicate the goals of the HPWS to employees The study also shows firms adopting cost-reduction strategies should focus more on treating employees as resources.

scholarly journals RELATIONSHIP BETWEEN FAMILY OWNERSHIP, AGENCY COSTS TOWARDS FINANCIAL PERFORMANCE AND BUSINESS STRATEGY AS MEDIATION

2018 ◽  
Vol 19 (0) ◽  
pp. 49-58
Author(s):  
Enni Savitri
Keyword(s):  
Financial Performance ◽  
Business Strategy ◽  
Agency Costs ◽  
Stock Exchange ◽  
Partial Least Square ◽  
Least Square ◽  
Business Strategies ◽  
Family Ownership ◽  
Manufacturing Companies ◽  
The Relationship

This study investigates the relationship between family ownership, agency costs, financial performance, and companies’ business strategies. The targeted population of this study were all 143 manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2007–2014. About 31% (45) of these manufacturing companies are family companies. The hypotheses were tested using the partial least-square (PLS) method. Our findings reveal that the companies’ business strategies are not affected by the family ownership. Family ownership and business strategies influence companies’ financial performance. Agency costs influence business strategy and financial performance, and this shows that agency costs contribute to both the increase and decrease of financial performance. Business strategy mediates the relationship between family ownership and financial performance. This shows that family companies do not concentrate on financial goals but rather on the sustainability. Business strategy influences the relationship between agency costs and financial performance. This shows that funds can be redistributed in the course of business strategy planning, which will, in turn, improve the company’s development.

Sustaining Healthcare Through Waste Elimination

2011 ◽  
Vol 6 (4) ◽  
pp. 1-22 ◽  
Author(s):  
Sharie L. Falan ◽  
Bernard Han ◽  
Linda H. Zoeller ◽  
J. Michael Tarn ◽  
Donna M. Roach
Keyword(s):  
Business Processes ◽  
Health Expenditures ◽  
Healthcare Management ◽  
Management Systems ◽  
Healthcare Waste ◽  
Key Factor ◽  
Research Findings ◽  
Efficient Information ◽  
Effective Use ◽  
Domestic Products

The growth in U.S. national health expenditures (NHE) has continuously outpaced its Gross Domestic Products (GDP) growth since 1997 and this trend will continue with a 2.1% annual gap for the next decade (RAND, 2010). This nonstop healthcare cost increase make healthcare one of the most urgent issues in USA. Concurred by this study, the key factor that drives up the healthcare costs is waste. In this paper, a taxonomy on the root causes of healthcare waste is developed with a corroboration on why healthcare waste could be eliminated through effective use of health information technology (HIT). Furthermore, real world cases are used to highlight the research findings that waste can be avoided by: (a) recognizing the precursor of each potential waste, (b) examining business processes using defined detection criteria, and (c) implementing HIT systems that support efficient information sharing among all healthcare stakeholders. Finally, recommendations for implementing IT enabled healthcare management systems are presented.

Strategic human resource management and employees' intention to leave: testing the moderated mediation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Subhash C. Kundu ◽  
Archana Mor ◽  
Neha Gahlawat
Keyword(s):  
Human Resource Management ◽  
Human Resource ◽  
Business Strategy ◽  
Intention To Leave ◽  
Strategic Human Resource Management ◽  
Business Strategies ◽  
Innovation Strategy ◽  
Quality Enhancement ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this study is to examine the relationship between business strategies (i.e. cost reduction, quality enhancement and innovation strategy) and employees' intention to leave (ITL), through the mediating role of high-performance work system (HPWS). It also attempts to study variability in the relationship between business strategies, HPWS and employees' ITL on the basis of nature and ownership forms of the firms.Design/methodology/approachPrimary data based on 573 respondents from 192 organizations operating in India were analysed using structural equation modelling and conditional process modelling.FindingsThis study has revealed that HPWS mediates the relationship between business strategy (specifically innovation and quality-enhancement strategy) and employees' ITL. Findings further indicate that the mediated relationships between quality enhancement and innovation strategy, HPWS and ITL do not vary across nature and ownership forms of the firms.Practical implicationsIn context of dynamic business environments in developing countries, the findings provide some important insights in exploring the relevance of strategic human resource management in improving employees' behavioural intentions.Originality/valueBy applying a three dimensional business strategy system (innovation, quality and cost) and by exploring the relevance of several contextual factors, this study attempts to expand the focus of turnover research.

Harmonizing IT and Business Strategies

2005 ◽  
pp. 1317-1321
Author(s):  
Kevin Johnston
Keyword(s):  
Chief Executive Officers ◽  
Business Strategy ◽  
Chief Executive ◽  
Business Strategies ◽  
Chief Information Officers ◽  
It Strategy ◽  
It Alignment ◽  
Academic Researchers ◽  
Business It Alignment ◽  
Executive Officers

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).

Business Strategy and the Role of Engineering Product Data Management: A Literature Review and Summary of the Emerging Research Questions

1996 ◽  
Vol 210 (3) ◽  
pp. 207-220 ◽  
Author(s):  
S B Harris
Keyword(s):  
Data Management ◽  
Business Strategy ◽  
Business Processes ◽  
Product Data Management ◽  
Engineering Product ◽  
Product Data ◽  
Manufacturing Organizations ◽  
Technical Issues ◽  
The Relationship

This paper seeks to review the business strategy and product data management literature in an attempt to establish the nature of the relationship between them. One obvious linking theme is that of information systems strategies and their alignment with business processes, and therefore attention has also been given to this body of literature. The conclusions are that there is little well-researched understanding about the nature of the relationship and little concrete evidence of the relative importance of product data management in achieving overall business objectives. Therefore, if manufacturing organizations are to be able to invest wisely in product data management, substantial research is required to address the fundamental business and technical issues that have emerged as a result of this review.

scholarly journals ALIGNMENT OF PROJECT MANAGEMENT WITH BUSINESS STRATEGY IN CONSTRUCTION: EVIDENCE FROM THE TURKISH CONTRACTORS

2014 ◽  
Vol 21 (1) ◽  
pp. 94-106 ◽  
Author(s):  
Cenk Budayan ◽  
Irem Dikmen ◽  
M. Talat Birgonul
Keyword(s):  
Project Management ◽  
Construction Industry ◽  
Business Strategy ◽  
Structural Equation ◽  
Product Variety ◽  
Project Planning ◽  
Business Strategies ◽  
Differentiation Strategy ◽  
Research Findings ◽  
The Relationship

The importance of fit between an organization’s implementation of project management (PM), and its business level strategy is emphasized in the literature. However, there are a limited number of studies investigating the relationship between business level strategy and implementation of PM in the construction industry. This paper aligns one of the business strategies, namely differentiation, with the PM process. A framework representing differentiation in the construction industry is proposed in this study. Structural equation modelling (SEM) is used to validate the relationship between differentiation and the PM process. The results show that a relationship between differentiation strategy and PM exists. The two types of differentiation are revealed, namely “product variety and speed-related differentiation” (PSD) and “quality and image-related differentiation” (QID). The companies trying to differentiate based on PSD should focus on cost, time and quality management. Change management and project planning are identified as important drivers of differentiation based on PSD. On the other hand, the companies trying to differentiate on QID should consider health, safety and environmental issues as well as quality. Companies should also manage their resources effectively to support the PM process that in turn leads to successful differentiation. Companies can utilize the research findings as a guideline while formulating their differentiation strategies.

scholarly journals IT Master Plan

2019 ◽  
Vol 10 (1) ◽  
pp. 1-8
Author(s):  
Iwan Prasetiawan
Keyword(s):  
Business Strategy ◽  
Planning Process ◽  
Rapid Development ◽  
Business Strategies ◽  
Master Plan ◽  
It Strategy ◽  
Strategic Objectives ◽  
Work Plan ◽  
Is Strategy ◽  
Technological Developments

The rapid development of business, supported by technological developments that are not less rapid, it requires a strong and precise alignment between business strategies or organizations with the Information Systems (IS) strategy and Information Technology (IT)strategies as supporters. An IT strategy plan includes many aspects, covering several aspects which include aspects of technology architecture,roadmap / work plan, and supporting standards for its implementation. This Guidelines for Preparation and Implementation of the IT MasterPlan, explains the methods and main steps in managing and implementing IT strategy to support the implementation of the main tasks and the achievement of the strategic objectives of an organization or company. An important aspect that concern to the author is the importance of organizational and management involvement. Which is a key aspect of the planning process, together to ensure that all IS components have the same goals and direction as the business so it is easy to identify organizations that have not aligned. The logical relationship between business strategy and IT strategy does not usually occur directly, but through an intermediary for determining the IS Strategy, the strategy must be able to translate business strategies into the perspective of data and information flow to finally determine the information and communication technology work plan up to the specified year compiled in an IT Master Plan.

Sign in / Sign up

Export Citation Format

Share Document