Recap on the Business IS Strategic Alignment.

In my previous blog posts I have outlined a simple definition of strategic alignment , I then showed the importance of having both good technology and good business strategy to make it the alignment successful. I then posted about how this issue is still relevant to organisations today including the ever discussed current economic climate. I then discussed how the strategic alignment issue is affected by the traditional strategies of cost leadership, differentiation and niche . As I felt it was still a relevant issue I then laid out possible ways to achieve this strategic alignment. I then proposed the possible arguments for and against the business IS strategic alignment. As a closing post I will quickly recap on the definition and use of business IS strategic alignment.

Strategic alignment is the degree to which the business strategy is enabled, supported and simulated by information strategies according to Broadbent and Will (1993). The effect of IT on performance will be dependant on the extent to which IT strategy and the business strategy fit and are harmonious (Palmer and Markus, 2000, and Croteau and Raymond, 2004). Webster defines strategic alignment as “bringing parts or components into proper coordination; to bring into agreement and close cooperation”.  An additional definition is “the degree to which the IT mission, objectives and plans support and are supported by the business mission, objectives and plans” according to Reich and Benbasat (1996).

It is important to keep in mind the impact that IT can have depends on how and why that IT is used (Galliers and Leidner, 2003). Often firms are now suffering from IT underutilization and IT shortfall (Shin, 2002). IT underutilization occurs when the business strategy does not utilize it to its full potential. IT shortfall occurs when the IT fails to support the business strategy. This shows the importance the business IS strategic alignment can have. It can promote the strategic and efficient use of IT in order to achieve and sustain a competitive advantage for an organization.

Sources: 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

Strategic Alignment between IT and Business Strategy by Mohamad Arafat, University of Nottingham 2007 (http://edissertations.nottingham.ac.uk/958/1/07MScLixmaa.pdf)