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

strategical Alignment Leveraging Information technology for transforming OrganizationsBased on the writing of J.C. Henderson, N. Venkatraman (1993)byPhilipp MaderthanerA. SummaryHenderson and Venkatraman proposed a model for telephone line IT coalescence it was intend to support the integration of information engineering (IT) into business strategy by advocating alignment between and within foursome domains (see figure 1). The inter-domain alignment is chased along two dimensions strategic fit (between the outside(a) and intragroup domain) and operable integration (between the business domain and the IT domain). The objective of this model was to provide a way to align information technology with business objectives in swan to realise value from IT investments. The authors argued that the potential strategic impact of information technology requires both an understanding of the critical components of IT strategy and its role in bread and butter and shaping business strat egy decisions and a process of continuous interlingual rendition and change. Hence, they presented a model that defines the range of strategic choices facing managers.Figure 1 Strategic Alignment ModelTwo main imperatives for managers are pointed start 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 moldiness be taken into account. Only one of them is not sufficient.Overview about the four dominant alignment eyeshots1. Strategy executionThis 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 common and widely understood perspective, as it corresponds to the classic, hierarchical view of strategic management.Driver     Business Strategy quality of Top Management  & nbsp  Strategy Formulator reference of IT Management Strategy Implementer cognitive operation Criteria Cost/Service Center2. Technology transformationThis alignment involves the estimate of implementing the chosen business strategy by dint of appropriate IT strategy and the colligation of the required IT infrastructure and processes. This strategy is not constrained by the genuine organization design, but instead seeks to identify the best possible IT competencies through appropriate positioning in IT marketplaces.Driver     Business Strategy situation of Top Management     Technology VisionaryRole of IT Management Technology ArchitectPerformance Criteria Technology Leadership3. Competitive PotentialThis perspective is concerned with the exploitation of emerging IT capabilities to impact new products and services (business scope), influence the key attributes of strategy (distinctive competencies) and develop new forms of relation ships (business governance).Driver     IT StrategyRole of Top Management     Business VisionaryRole of IT Management acceleratorPerformance Criteria Business Leadership4. Service LevelThe service take alignment perspective focuses as the name shows on how to build a world-class IT service organization.