Harmonizing IT and Business Strategies

Author(s):  
Kevin Johnston

This chapter proposes that all business strategies should be harmonized into a single strategy, rather than attempt to align IT strategy with business strategy. It focuses on two hypotheses: firstly, that IT strategy is not widely aligned with business strategy; and secondly, that IT is still thought of as “something different” in businesses. The chapter proposes that rather than attempt to align IT strategy with business strategy, the strategies should be harmonized into a single strategy. The chapter attempts to use lessons from geese to outline the process of strategic development.

Author(s):  
Kevin Johnston

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).


2019 ◽  
Vol 10 (1) ◽  
pp. 1-8
Author(s):  
Iwan Prasetiawan

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.


Author(s):  
Kevin Johnston

Most organizations have multiple levels of strategic plans (de Kluyver & Pearce, 2006), one of which is the Information Technology (IT) strategic plan. The alignment of an organization’s business strategy with its IT strategy has been a concern of CIOs (Benson & Standing, 2008; Croteau & Bergeron, 2001; Johnston, Muganda, & Theys, 2007; Luftman Kempaiah, & Nash, 2006), CEOs (Armstrong, Chamberlain, Moore, & Hart, 2002; O’Brien & Marakas, 2006), academic researchers (Henderson & Venkatraman, 1999; Kangas, 2003; Pearlson & Saunders, 2004; Reich & Benbasat, 2000), and research companies (Broadbent, 2000; Croteau & Bergeron, 2001; Meta Group, 2001) since the age of vacuum tubes. The Society for Information Management (SIM) studies reveal that ‘IT and Business Alignment’ was the number one management concern in 2003, 2004 and 2005, and has been one of the top 10 concerns since 1983(Luftman et al., 2006). IT and business strategies should not be separate or aligned; organizations should simply have one business strategy: one organization, one strategy.


2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Sri Nilawaty Lahay ◽  
Raden Teguh Dirgahayu

This study aims to evaluate the suitability of business strategies and Information Technology (IT) strategies at Universitas Negeri Gorontalo (UNG) with COBIT 5 best practices. Researchers observe how UNG is planning business strategies and IT then compared with the best COBIT practice 5. The method used in this study is qualitative which includes interviews with interested parties and document studies related to business strategies and IT strategies. The model used is COBIT 5 in the APO domain APO02 process which consists of 31 activities and, SCAMPI (Standard CMMI Appraisal Method for Process Improvement) as a valuation method. The results showed that the alignment of business strategy and IT strategy in UNG had approached the process of alignment of business strategy and IT strategy in COBIT 5. Another important thing found in this study was that planning activities for aligning business strategies and IT strategies at UNG had almost approached. COBIT 5 best practice, however, does not guarantee that overall business and IT activities at UNG are aligned, this is evidenced by the finding of 3 processes that have major weaknesses because there is no activity or evidence of practices carried out referring to COBIT 5. Penelitian ini bertujuan mengevaluasi kesesuaian strategi bisnis dan strategi teknologi informasi (TI) di Universitas Negeri Gorontalo (UNG) dengan best practice COBIT 5. Peneliti melakukan pengamatan bagaimana UNG melakukan perencanaan strategi bisnis dan TI kemudian dibandingkan dengan best practice COBIT 5. Metode yang digunakan dalam penelitian ini adalah kualitatif yang meliputi wawancara dengan pihak yang berkepentingan dan studi dokumen terkait strategi bisnis dan strategi TI. Model yang dipakai yaitu: COBIT 5 pada domain APO proses APO02 yang terdiri dari 31 aktivitas dan, SCAMPI (Standard CMMI Appraisal Method for Proses Improvement) sebagai metode penilaian. Hasil penelitian menunjukan bahwa aktivitas penyelarasan strategi bisnis dan strategi TI di UNG telah mendekati proses aktivitas keselarasan strategi bisnis dan strategi TI pada COBIT 5. Hal penting lainnya yang ditemukan dalam penelitian ini adalah meskipun aktivitas perencanaan penyelarasan strategi bisnis dan strategi TI di UNG telah hampir medekati best practice COBIT 5 namun, tidak menjamin dalam keseluruhan aktivitas bisnis dan TI di UNG selaras, hal tersebut dibuktikan dengan ditemukan 3 proses yang memiliki kelemahan utama karena tidak terdapat aktivitas atau bukti praktik-praktik yang dilaksanakan merujuk pada COBIT 5.


Author(s):  
A.J. Gilbert Silvius

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.


Author(s):  
Sandfreni Sandfreni ◽  
Fransiskus Adikara

Success in competition in a business is related to the development of core competencies, strategic alignment and long-term strategic planning in order to maintain the competitive advantage of a business. A company needs alignment between IT strategy and Business Strategy. Planning IT Strategy is the first step between the processes of a company information system and is a guideline of the company's information system and the basis of implementation. This paper aims to discuss how to make appropriate IT strategic planning. After discussing the Strategic Alignment Model and the relationship between IT strategy and business strategy, it proposes strategic IT planning models based on business strategies, which consist of IT assessment and analysis, IT planning and design as well as IT implementation and design. Then, give an example to illustrate how to make IT strategic planning using the model. Sukses dalam persaingan dalam sebuah bisnis terkait dengan pengembangan kompetensi inti, keselarasan strategi dan perencanaan strategis jangka panjang agar dapat mempertahankan keunggulan kompetitif dari sebuah bisnis. Sebuah perusahaan membutuhkan keselarasan antara strategi IT dan Strategi Bisnis. Perencanaan Strategi IT merupakan langkah pertama antara proses dari sebuah sistem informasi perusahaan dan merupakan pedoman dari system informasi perusahaan serta dasar pelaksanaan. Tulisan ini bertujuan untuk membahas bagaimana membuat perencanaan strategis IT yang tepat. Setelah membahas Model Keselarasan Strategis dan hubungan antara IT strategi dan strategi bisnis, itu mengusulkan IT strategis model perencanaan didasarkan pada strategi bisnis, yang terdiri IT penilaian dan analisis, perencanaan dan desain IT serta implementasi dan desain IT. Kemudian, memberikan contoh untuk menggambarkan bagaimana membuat perencanaan strategis IT dengan menggunakan model tersebut.


2021 ◽  
Vol 3 (1) ◽  
pp. 96-107
Author(s):  
Galang Krisnawa Bhakti ◽  
Augie David Manuputty

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.


2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay

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.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

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.


2020 ◽  
Vol 7 (3) ◽  
pp. 581
Author(s):  
Anwar Romadhon ◽  
Erma Suryani

<p class="Abstrak">Perkembangan rumah sakit di Indonesia semakin meningkat, sejak tahun 2012 sampai 2018 mengalami peningkatan dengan rata – rata 5.2%. Tentunya hal tersebut memiliki dampak terhadap daya saing yang lebih kompetitif. Kebijakan pemerintah Indonesia  yang mengharuskan rumah sakit bekerja sama dengan Jaminan Kesehatan Nasional (JKN) guna pemerataan  pelayanan kesehatan mempengaruhi jumlah pendapatan. Faktanya asuransi BPJS Kesehatan mengalami defisit anggaran yang nilainya sangat besar. <em>Manajement</em> rumah sakit harus mencari strategi dan kebijakan yang tepat dalam upaya memaksimalkan pendapatan khususnya di era JKN. Pembatasan jumlah kunjungan tidak mungkin dilakukan mengingat sebagian besar pasien berasal dari peserta BPJS Kesehatan. Tujuan penelitian ini dilakukan untuk menemukan kebijakan dan solusi yang tepat bagi rumah sakit untuk mendapatkan keuntungan finasial dalam kondisi defisitnya anggaran asuransi kesehatan. Penting informasi membuat manajemen rumah sakit berupaya untuk memanfaatkan teknologi informasi sebagai media untuk merancang strategi bisnisnya, simulasi komputer seperti pemodelan sistem dinamik mempu menggambarkan dan mensimulasikan sistem secara nyata yang mengacu pada data,  sehingga pemangku kepentingan dapat memprediksi kondisi yang bisa terjadi dimasa depan. Hasil penelitian menunjukkan bahwasanya dengan merubah sistem pembayaran dari <em>Fee For Services</em> menjadi <em>INA</em> - <em>Case Base Groups</em> dapat memberikan keuntungan lebih bagi rumah sakit, hal ini dikarenakan tarif yang ditetapkan menyesuaikan dengan tarif rumah sakit di seluruh Indonesia. Temuan lain yang perlu diperhatikan adalah piutang pihak asuransi mengalami peningkatan, tentunya hal tersebut perlu perhatian lebih, serta bisa dijadikan bahan pertimbangan untuk mengubah sistem pembayaran karena sesuai hasil simulasi dapat memaksimalkan jumlah pendapatan . Lokasi penelitian di unit rawat inap, rumah sakit islam surabaya, diharapkan dari hasil pemodelan simulasi bisa dijadikan sebagai gambaran atau acuan bagi manajemen puncak rumah sakit dalam mengambil sebuah keputusan sebagai strategi bisnis.</p><p class="Abstrak"> </p><p class="Abstrak"><strong><em>Abstract</em></strong></p><p class="Abstrak"></p><p class="Abstract"><em>Hospital development in Indonesia has increased, from 2012 to 2018 has increased by an average of 5.2%.. Of course this has an impact on more competitive competitiveness. Indonesian government policy that requires hospitals to work closely with the National Health Insurance (JKN) in order to equalize health services affects the amount of revenue. The fact is that BPJS Health insurance has a very large budget deficit. Hospital management must find the right strategy and policy in an effort to maximize revenue, especially in the JKN era. Limiting the number of visits is not possible considering that most patients come from BPJS Health participants. The purpose of this study was to find the right policies and solutions for hospital to obtain financial benefits in the health insurance budget deficit. Important information makes hospital management strive to utilize information technology as media for designing business strategies, computer simulations such as dynamic system modeling can describe and simulate real systems that refer to data, so that stakeholders can predict conditions that can occur in the future. The results showed that by changing the payment system from Fee For Services to INA - Case Base Groups can provide more benefits for hospital, this is because the rates set adjust to hospital rates throughout Indonesia. Another finding that needs to be considered is that the insurance receivables have increased, of course it needs more attention, and can be taken into consideration to change the payment system because according to the simulation results can maximize the amount of income. The location of research in the inpatient unit, Surabaya Islamic hospital, is expected from the results of simulation modeling can be used as an illustration or reference for top management of the hospital in making a decision as a business strategy.</em></p>


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