Strategic Alignment Model

Improved Essays
In the past few decades, a large number of researchers examined the subject of business-IT alignment, with BITA being conceptualized in the academic literature in various ways.
Henderson and Venkatraman define such alignment as “the degree of fit and integration among business strategy, IT strategy, business infrastructure, and IT infrastructure”. They developed a Strategic Alignment Model (SAM) that addresses the alignment on the different levels of IT and business (Henderson & Venkatraman 1993). The model is based on four key domains of strategic choice: business strategy, organizational infrastructure and processes, IT strategy, IT infrastructure and processes (shown in figure 1). The dimension of strategic fit differentiates between external
…show more content…
It is “one of the dominant alignment models, [that] has been continuously evaluated and was found to be consistent and prevailing in predicting impact factors such as firm performance” (Ei-Masri et al. 2015, p.3). It Luftman et. al., in their work on enablers and inhibitors, define business-IT alignment as “applying IT in an appropriate and timely way, in harmony with business strategies, goals and needs” (Luftman et al. 1999, …show more content…
This allows the term to “express both a ‘state’, the amount of alignment, as a ‘process’, the activities to reach a certain state of alignment. It covers not just the alignment process aimed at developing, selecting or enhancing IT applications and infrastructure, but also the agreements regarding the application and service management. BITA therefore covers more than just the ‘plan’ phase of IT, [but] also the ‘manage and maintain’ phase” (Silvius 2007, p.4).
Despite different definitions, the message business-IT alignment is conveying is the same: IT should support the business, and that it will be more successful if the IT resources are developed and organized with the business strategy and processes in mind. It may sound like common sense, but is not easy to achieve in

Related Documents

  • Decent Essays

    Is3350 Unit 1

    • 190 Words
    • 1 Pages

    1. Critically evaluate information gathered from multiple sources, reconcile conflicts, decompose high-level information into details, abstract up from low-level information to a general understanding, and distinguish user requests from the underlying true needs using tools such as Entity relationship diagram, Flow charts, workflow modelling. 2. Investigate and analyze business processes, organization & services. 3.…

    • 190 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    A Strategic Analysis of Five9 BUS 477N-112 Fall 2014 Five9 is an innovator and leading supplier of cloud contact center software. The company’s highly accessible and secure Virtual Contact Center (VCC) cloud platform delivers an inclusive set of easy-to-use applications that enables both simultaneous management and the augmentation of consumer interaction across email, social media, web, voice, and mobile channels through application programming. This strategic analysis was produced with the purpose of thoroughly exploring the cloud contact center as an industry, classifying and analyzing both external and internal opportunities and threats, and establishing where the company stands in relation to their key competitors.…

    • 830 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Questions 3: Choosing to engage in strategic planning Various internal or external influences may influence an executive director at a drug addiction treatment center to engage in strategic planning. For instance, some internal influence may be that the agency is facing economic woes, whether it is inadequate budgeting or reduction in clients, and will need to reevaluate its budget or operations. Alternatively, if the agency’s budget is exceeding expectations then the agency may have new opportunities to provide more services to a specific population or to multiple populations. The new services could be providing co-occurring mental health treatment or providing distinct mental health and substance abuse treatment. Also, there may be a high…

    • 1176 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    The Case of Extreme Scientists Chapter 6 of the textbook, Managing and Using Information Systems- A Strategic Approach, provides an overview of architecture and infrastructure as they relate to organizational IT design. After reading the Case Study 6-2, “The Case of Extreme Scientists,” on pages 195–196 in the textbook, the following three questions are answered. I. How would you describe the architecture Dr. Schadt uses to do his research?…

    • 580 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Business Case for Investment Michael Buckley, Jerimiah Heter, Terry Phillips, Nathanael Tyson, Julia Wynn CMGT / 445 April 18, 2016 John Sallee Business Case for Investment (Terry) Business managers and executives want and need to see a plan along with a business case or model that clearly defines the hardware and software needed for a proposed information system. As such, a key part of this process is to show why an expenditure is necessary and what kind of return on investment the company can expect to gain from it. The business case or model should demonstrate the necessary security that is necessary to protect company assets and systems such as servers and database architecture. The detail necessary to create the business case…

    • 2457 Words
    • 10 Pages
    Superior Essays
  • Decent Essays

    This week’s module topic “IT and Competitive Strategies (II)” reviewed the Trinity Health case, rationale for using a merger and acquisition growth strategy, reasons for implementing a common digital platform and benefits versus cost in standardizing IT architectures. Trinity Health implemented a growth-through-acquisition strategy by acquiring services needed by its entities and providing a mix service offering to cater to the needs of the community by improving services and benefits accordingly for patients while reducing costs through economies of scale and attaining economies of scope through diversification. A major benefit from a common digital platform is increased productivity, performance, standardization of service across all entities…

    • 211 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Kenney-Clark Lessons

    • 464 Words
    • 2 Pages

    There are three companies that could learn lessons from the Kimberly-Clark case. These three companies are J. C. Penney, Kmart, and Barnes & Noble. Since 2011, J.C. Penney has been through two CEOs, three CIOs, one CTO, and three ecommerce leaders (Nash, 2014). This high turnover in executive positions placed a major strain on the IT department. Each executive had his or her own unique idea on what type of IT to use, but before their idea was fully implemented, the executive was replaced.…

    • 464 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Cobit Framework

    • 1225 Words
    • 5 Pages

    I think it makes sense for businesses to go green from an when considering IT strategy, such as saving energy and cut costs. Although not directly stated in the article itself, being able to successfully achieve green IT can definitely be looked at as developing an IT strategy for delivering business value, which was an important topic discussed in Chapter 1 of our textbooks. From my interpretation of the article, I believe that the use of COBIT can help businesses to better understand and identify the value of green IT by linking IT and business goals and measuring outcomes of performance of green IT initiatives as the article stated. In addition, I also think that COBIT can be used as an effective governance tool to better understand the value of green IT, and help develop an effective IT…

    • 1225 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    As Hershey needs to replace their inventory movement systems as the old one is quite outdated. Newly introduced ERP is the best choice for them to handle the problems of inventory as ERP has full potential to record, classify and summaries all the inventory movement transactions. Secondly the need for new ERP system installation required to integrate their system to meet business plan and streamline their processes for future. Hershey had chosen SAP as a centralized system, which is then followed by planning and transportation management software from Manugistics, and new sales software from Siebel Systems.…

    • 887 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Infosys Consulting in 2006: Leading the Next Generation of Business and Information Technology Consulting Dhinesh E -139278037 Holistic View The case is set in early 2006. An overview about the Information Technology (IT) services landscape is provided for this period.…

    • 1591 Words
    • 7 Pages
    Great Essays
  • Great Essays

    Name: Jack Sheehan Student Number: 114564277 Lecturer: Bernadette Power Module Code: EC2017 Date Due: 30th of July 2015 Word Count: 1,040 A business strategy is hugely important in determining the strategic position of a firm.…

    • 1040 Words
    • 5 Pages
    Great Essays
  • Great Essays

    If it were my business, I would choose to be the Blue Ocean Strategy and create an entirely new marketplace, where the company is the leader and competition doesn’t exist. c. Porter and Millar argued in their article How Information Gives You Competitive Advantage that information can provide a company competitive advantage and that information can spawn new businesses. Discuss HOW digital ubiquity in which connections, sensors, smart and hyper-connected products and services may provide a company competitive advantage and opportunities to spawn new businesses. Information technology can give any business a competitive advantage in their market if they use it correctly. The company must be willing to move away from its norm and be open to new ideas.…

    • 1375 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    IT Governance IT governance (ITG) is refers processes those ensure the effective and efficient use of IT resources to achieve organization 's goals. IT governance is often confused with IT controls, compliance and management. The confusion is increased by terms such as "governance, compliance and risk" that setup a link between governance and compliance. The primary focus of IT governance is what is to be achieved from the IT resources.…

    • 857 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    The Technology strategic Alignment Model by Henderson, J. C., & Venkatraman, N., 1993 (Figure 1) analyzes the functional integration and implementation of business strategy with adequate…

    • 886 Words
    • 4 Pages
    Superior Essays
  • Great Essays

    Question 1 A strategic alliance can be defined when two or more companies wish to engage in a mutual business agreement whereby they still retain their own identity as a company but work towards a common purpose. These two companies engage in similar business practices but do not necessarily have to be based in the same location. The companies involved in the strategic alliance can offer each other their market knowledge, skills, assets such as intellectual property, funding and capital, technologies, suppliers, distribution networks as well as a share in profits, risks and expenses.…

    • 1471 Words
    • 6 Pages
    Great Essays