Alignment Examp Prep Flashcards
Henderson & Vankatraman (1999) Strategic alignment: Leveraging information technology for transforming organizations
What is it about?
The article argues for a new way to think about how businesses manage Information Technology (IT).
Traditional IT alignment is limited: It focuses on internal factors and sees IT as a tool to implement existing business strategy, rather than a potential driver of new strategies.
Henderson & Vankatraman (1999) Strategic alignment: Leveraging information technology for transforming organizations
Explain the Strategic Alignment Model
Business Strategy as the Driver: IT can be used to execute existing strategy (Strategy execution) or transform (Technology Transformation) the business through strategic use of IT.
IT Strategy as the Enabler: IT capabilities can be used to create entirely new business strategies (Competitive potential) or focus on building a world-class IT service organization (service level alignment)
Henderson & Vankatraman (1999) Strategic alignment: Leveraging information technology for transforming organizations
Implications
Businesses need to understand the strategic potential of IT and how it can be used to achieve business goals. They should also evaluate IT performance based on a broader range of criteria, including strategic impact.
Strategic alignment is an ongoing process that requires continuous adjustments.
Henderson & Vankatraman (1999) Strategic alignment: Leveraging information technology for transforming organizations
Critical perspective
Still highly relevant and especially interesting what you limit when you choose one alignment model vs. another - how the focus is shifting.
Can IT become too dominant?
Wu, S. P. J., Straub, D. W., & Liang, T. P. (2015). How information technology governance mechanisms and strategic alignment influence organizational performance.
What is it about? How does IT Governance Mechanisms
The study investigated the relationship between IT governance mechanisms, strategic alignment, and organizational performance.
IT governance mechanisms (decision-making structures, formal processes, communication approaches) positively influence the intellectual dimension of strategic alignment (alignment of IT strategy with business strategy).
Strategic alignment fully mediates the relationship between IT governance mechanisms and organizational performance. This means that IT governance mechanisms only affect performance through their impact on strategic alignment.
Strong communication between IT and business units is important for achieving strategic alignment.
Customer focus is the most affected performance element by strategic alignment, followed by operational excellence and financial returns.
Wu, S. P. J., Straub, D. W., & Liang, T. P. (2015). How information technology governance mechanisms and strategic alignment influence organizational performance.
Implications
IT governance should be designed to facilitate communication and knowledge sharing between IT and business leaders.
Organizations should focus on achieving strategic alignment between IT and business strategies to improve performance.
Wu, S. P. J., Straub, D. W., & Liang, T. P. (2015). How information technology governance mechanisms and strategic alignment influence organizational performance.
Critical perspective
Data from Taiwan
Focused on the intellectual dimension..
Intellectual dimension and social alignment are two sides of the coin when it comes to achieving successful alignment within a business or organization.
* Intellectual alignment refers to the congruence of plans, strategies, and goals between different departments or teams. This involves having a shared understanding of the organization’s objectives and how IT can support them.
* Social alignment focuses on the attitudes and behaviors of people within the organization. It’s about having a collaborative culture where people from different backgrounds can work together effectively towards shared goals.
Both intellectual and social alignment are essential for achieving optimal results.
Njanka, S. Q., Sandula, G., & ColomoPalacios, R. (2021). IT-Business alignment: A systematic literature review.
Two prominent models for achieving IT-business alignment are:
Strategic Alignment Model (SAM) - emphasizes aligning business strategy, IT strategy, infrastructure, and processes.
Strategic Alignment Maturity Model (SAMM) - assesses an organization’s current level of IT-business alignment in six areas (communication, competency, governance, partnership, scope, and skills).
Scores communication, competency, governance, partnership, architecture and skills on 1-5
Njanka, S. Q., Sandula, G., & ColomoPalacios, R. (2021). IT-Business alignment: A systematic literature review.
Benefits and Challenges
Benefits of IT-business alignment include: stronger teamwork, competitive advantage, smoother operations, smarter investments, and improved performance.
Challenges:
- Demonstrating the value of IT investments.
- Maintaining alignment in the long term.
- Communication silos between IT and business teams.
- Poor IT governance.
- Skills gap due to rapid technological change.
Njanka, S. Q., Sandula, G., & ColomoPalacios, R. (2021). IT-Business alignment: A systematic literature review.
Reference other topics and critical perspective.
Can be linked to Chen off cause and to governance.
Many articles are focused on aligning IT and business, but the external factors might be just as important or more. Customer needs, regulations and their effect on alignment.
SAM and SAMM does seem to be a bit outdated and does not consider agile methodologies or disruptive technology.
