Summary Report: Strategic Alignment: Leveraging Information Technology for transforming Organizations :: essays research papers

Strategic Alignment Leveraging Information engineering for transforming OrganizationsBased on the paper of J.C. Henderson, N. Venkatraman (1993)byPhilipp MaderthanerA. SummaryHenderson and Venkatraman proposed a illustration for business IT alignment it was intended to support the integration of information technology (IT) into business outline by advocating alignment between and within quadruplet domains (see figure 1). The inter-domain alignment is pursued along two dimensions strategical picture (between the immaterial and internal domain) and functional integration (between the business domain and the IT domain). The intent of this model was to provide a way to align information technology with business objectives in order to realise value from IT investments. The authors argued that the potential strategic equal of information technology requires both an understanding of the critical comp angiotensin converting enzyments of IT scheme and its role in supporting and s haping business strategy decisions and a process of continuous adaptation and change. Hence, they presented a model that defines the range of strategic choices facing managers.Figure 1 Strategic Alignment Model devil main imperatives for managers are pointed out by Venkatraman and Henderson First, similar to business strategy, IT strategy has to consider both internal as well as external aspects. Second, both internal/external alignment as well as functional integration must be taken into account. Only one of them is non sufficient.Overview about the four dominant alignment perspectives1. Strategy carrying outThis strategy assumes that an articulated business strategy is the driver of both organizational design choices and the design of IT infrastructure. The alignment is said to be the most honey oil and widely understood perspective, as it corresponds to the classic, hierarchical view of strategic management. number one woodBusiness Strategy purpose of Top ManagementStrategy F ormulatorRole of IT Management Strategy ImplementerPerformance Criteria Cost/ table service Center2. engineering transformationThis alignment involves the assessment of implementing the chosen business strategy through with(predicate) appropriate IT strategy and the articulation of the required IT infrastructure and processes. This strategy is not constrained by the current organization design, but instead seeks to happen upon the best possible IT competencies through appropriate positioning in IT marketplaces. driverBusiness StrategyRole of Top ManagementTechnology tediousRole of IT Management Technology ArchitectPerformance Criteria Technology leaders3. Competitive PotentialThis perspective is concerned with the exploitation of emerging IT capabilities to impact impertinently products and services (business scope), influence the key attributes of strategy (distinctive competencies) and develop new forms of relationships (business governance).DriverIT StrategyRole of Top Manage mentBusiness verboseRole of IT Management CatalystPerformance Criteria Business Leadership4. Service LevelThe service level alignment perspective focuses as the relate shows on how to build a world-class IT service organization.