Strategic Alignment Benefits

25 Nov

I am going to outline the benefits associated with strategic alignment in this post as mentioned in my last post where I outlined possible arguments against strategic alignment (https://sopinion8ed.wordpress.com/2012/11/23/possible-arguments-against-strategic-alignment/ ) .

Much of the early motivation for strategic alignment came from the fact that planning of IT, such as the decisions on software and hardware, had long-term implications that trying to tie them in with the business plan was necessary. There are many reasons why many companies strive for strategic alignment including the reduction of such things as redundancy, conflicting work and that it helps to achieve specific goals and improve the company’s competitive advantage by defining such things as capabilities and competencies.

Another benefit is that the strategy will be clearer to the stakeholders and what roles they should play. This will help to eliminate the need to correct problems as projects are less likely to be conflicting and projects that do not support the strategy will not be initiated. This also helps the realization of strategy plans by helping to reduce redundant project activity. It helps to avoid conflicting outcomes and helps to remove barriers that may obstruct the path to success. It helps with the overall business success as it focuses resources on the activities that will have the greatest impact for the business. Strategic alignment also supports flexibility and the ability to change and evaluate the impact of changing strategic plans. It can also aid in making non-strategic changes quickly within the strategic framework. This can be a vital resource in reacting to increased competition. It is also very useful against competition in that it brings every employee toward a common goal increasing its likelihood of success.

In short as according to Chan and Reich in the Article It Alignment: What have we learned? the “organizations that successfully align their business strategy with their IT strategy will outperform those that do not”.

 

What do you think? Do the disadvantages previously mentioned outweigh the benefits I have mentioned here? Or is the case for strategic alignment still the stronger side? And comments or feed back welcomed!

 

Sources:

IT alignment: what have we learned?By Yolande E Chan & Blaize Horner Reich 2007 http://www.palgrave-journals.com/jit/journal/v22/n4/full/2000109a.html

 

The Case for Strategic Alignment , White Paper by The Knowledge Compass Inc 2006 http://www.knowledgecompanyinc.com/images/The_Case_for_Strategic_Alignment_-_vC010106.pdf

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4 Responses to “Strategic Alignment Benefits”

  1. cdat2 November 27, 2012 at 11:36 am #

    Interesting post d112221671! I enjoyed the positivity of your piece. I am intrigued by the statement “There are many reasons why many companies strive for strategic alignment including the reduction of such things as redundancy”. How do you feel strategic alignment will lead to a reduction in redundancy?

  2. d112221671 November 27, 2012 at 9:03 pm #

    Hi cdat2 thanks for the positive feedback!By the reduction in redundancy I was referring to the fact that due to the alignment between the business strategy and IS departments there would be better communication.and teamwork As a result of this the departments would know clearly what is the plan and what projects need to be completed. Another aspect of the alignment would be that both departments would know what the other is doing so that the work would not be done twice or extra work done that is not needed due to a lack of communication. This would avoid any repetition of work done which would waste valuable resources such as money and time. In simple terms the two departments know clearly what the other is doing so that there is no repetition or unnecessary work completed thus reducing redundancy. I hope this has answered your question!

Trackbacks/Pingbacks

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