Lecture 5a - Analyzing Alignment Flashcards
Strategic alignment
Important for achieving good business performance in one organization. To link two companies, all aspects have to be linked for strategic alignment. Business performance is dependent on strategic alignment.
Strategy / Business domain
Business strategy
Strategy / IT domain
IT strategy
Processes / Business domain
Business processes
Processes / IT domain
IT processes
Strategic Alignment Model (Henderson and Venkatraman)
Distinguish between the business domain (business strategy and business processes) and the technology domain (information strategy and IT processes, including systems development and maintenance) in an organization. Alignment is pursued along two dimensions: strategic fit, and functional integration.
Strategic fit
Between strategies and internal infrastructures and processes.
Functional integration
Between the business and the technology domain.
Alignment (Lufman and Hsiao & Ormerod)
A process with a typical sequence of activities with three major components that form a complete pattern of strategic change: driver, lever, and impact. For instance: business strategy can be a driver for a change of business processes or information strategy (‘levers’), ultimately affecting the IT processes (‘impact’)
Alignment (Chan & Reich)
An ongoing process of balancing IT supply and business needs, requiring specific IT management capabilities and going through patterns over time.
Alignment (Bergeron)
A state and a degree of fit between business and IT functions.
State
Degree of fit between business and IT functions.
Process
Balancing needs and services. Alignment is a process, has a driver somewhere (strategy or IT) leading to a change (‘impact’).
Relations in the research
- Better Governance means less Alignment.
- Better Alignment means better Information Quality.
- Better Information Quality means better Performance.
