Strategic alignment

1. Strategic alignment DIS 605 Class Presentation

2. Alignment is the capacity to demonstrate a positive relationship between information technologies and the accepted financial measures of performance. (Strassman, 1997) • The line of sight between the works that information technology professionals do every day and the strategy of top management within the organization. (Stephenson, 2008) • The extent to which the IS strategy supports, and is supported by, the business strategy. (Tallon & Kraemer, 1998) Strategic alignment Definitions

3. Why Strategic alignment ? • Realize optimal value from investment in IT • Achievement of Vision • Clarity of direction • Unique market position • Efficient organization

4. COMPONENTS OF STRATEGIC ALIGNMENT • Strategy • Management • Technology

5. Alignment Model Organizational Strategy Context Organization Boundary Organizational Strategy Strategic alignment IT Strategy Strategy Organizational Performance Business Alignment IT Alignment Organizational Resources Structural Alignment IT Resources

6. Perspectives of business IT Strategy alignment • Strategy Execution • Technology Potential • Competitive Potential • Service Level

7. Strategy Execution • Classical perspective of strategy alignment • Business sole driver • Top Management- formulators • IS management as Implementers Business Strategy IT Strategy Organisation infrastructue & processes Information Systems Infrastructure & processes

8. Technology potential • Business strategy driven • IS Strategy incorporation to support business strategy • Top Management- Technology vision • IS management - architects Business Strategy IT Strategy Organisation infrastructue & processes Information Systems Infrastructure & processes

9. Competitive Potential • Exploitation of emerging IT capabilities • IT capabilities drive Business strategy • Top Management- Business visionary • IS management- catalyst Business Strategy IT Strategy Organisation infrastructue & processes Information Systems Infrastructure & processes

10. Service level • Build word class IT/Organisation within the Organisation • Business strategy role indirect • Top Management- Prioritize-assign resources • IS management – Business leadership-Innovation Business Strategy IT Strategy Organisation infrastructure & processes Information Systems Infrastructure & processes

11. Summary (Technology perspectives) • Strategy Execution • Technology Potential • Competitive Potential • Service Level Business Strategy IT Strategy Organisation infrastructure & processes Information Systems Infrastructure & processes

12. Enablers of it alignment • shared domain knowledge between business and IT executives, • IT implementation success (Governance, Partnerships, Scope architecture & Skills) • Communication between business and IT executives • connections between business and IT planning processes • Strategic business plans. -Contribute to alignment maturity

13. Measurement of alignment • Matching perspective • Difference between measures • Moderation • Reflection of sinergy • Chan et al.’s (1997) supported Moderation • More research needed (Bergeron et al (2001)) • focus on other aspects of alignment? • firms dominant strategy? • Small firms?

14. Guidelines to alignment • Demonstrate enhancement to business value • Remain dynamic/updateable with business evolution • Overcome obstacles to its puposes • Must be planned • Consider process level perspective

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