Strategic Alignment: Leveraging Information Technology for transforming Organizations Based on the paper of J.C. Henderson, N. Venkatraman (1993) by Philipp Maderthaner A. Summary Henderson and Venkatraman proposed a model for business – IT alignment; it was intended to support the integration of information technology (IT) into business strategy by advocating alignment between and within four domains (see figure 1). The inter-domain alignment is pursued along two dimensions: strategic fit (between the external and internal domain) and functional 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 order 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 supporting and shaping business strategy decisions and a process of continuous adaptation and change.
There are three primary tasks that must take place for this linkage to happen. First, upper-level business managers must decide the role technology will play in advancing their competitive advantages (Hax & No, 1992). They must also determine the assets they will assign to technology, and the assertiveness used in the innovative development and in inserting technology into their products and processes (Hax & No, 1992). It is important that corporate involves themselves in this process because technology is embedded and shared throughout every function of a company. Corporate strategy that communicates its mission through the technological requirements will lead to a powerful viable position (Hax & No, 1992) .
3. Aligning IT infrastructure and operations with the business goals In this part, I would analyze the process of aligning IT infrastructure and operations with business goal in details. By looking through the caselets and power points that have been given, my opinion is that IT governance plays the most important role to ensure that IT is aligned with the business goals, by implementing effective IT governance, the organizations can gain the maximum value from IT, so that the business goal on IT would be achieved. I would define the background of IT governance and the process of building effective IT governance. 3.1 Background of IT governance IT governance is the organizational capacity exercised by the board, executive management and IT
4. Conceptualizing business model innovation The conceptualisation of the business model innovation is focused on three main concepts, they are value creation, Business system and value capture. The conceptualization of the business model innovation is that defining the new forms of the business model and depict characteristics and analysing the occurrence of the innovation in the business models to develop the business organisations. Value creation is one of the conceptualisation, it defines for whom the business company creates the value. Value proposition is one of the main element for the good business model.
(2012). Communication in a changing world: Contemporary perspectives on business communication competence. Journal Of Education For Business, 87(4), 230-240. doi:10.1080/08832323.2011.608388 Di Vitanotonio, G., Legh-Smith, J., Millar W., & Wilkinson, M. (2006). Meeting business objectives through adaptive information and communications technology. BT Technology Journal, 24(4), 113-120. doi:http://dx.doi.org/10.1007/s10550-006-0101-2
There are three basic steps of gaining strategic planning within GE: The formulating of a major business strategy. This is the basis of efforts to build a serious competitive advantage. The adaptation of the major business strategy to all the markets where the company’s products are presented. The globalization of the major business strategy. It means the company has to integrate the strategy in all the places of business operation.
According to Richard Brisebois, Greg Boyd, and Ziad Shadid, “IT Governance focuses specifically on information technology systems, their performance and risk management. The primary goals of IT Governance are to assure that the investments in IT generate business value, and to mitigate the risks that are associated with IT. This can be done by implementing an organizational structure with well-defined roles for the responsibility of information, business processes, applications, and infrastructure.” (Brisebois, Boyd, and Shadid,
The first step to the SDLC is System Strategy, which sounds like what it is, to develop a systems strategy. In this step, the information needed to purchase, develop, or modify a system is gathered. In the Systems Strategy stage the company “reflects the organization’s current position relative to where it needs to be in the long term to maintain strategic advantage” (Hall 550). There is three tasks at hand in this step: assessing the organization’s strategic information needs, developing a strategic systems plan, and creating action plans. Developing a system that follow the strategic information needs of the organization is the foundation for the following steps.
It provides an inside to the present business scope and purpose of the firm that is "who we are, what we do, and why we are here". It explains the firm's very reason for existing. It will generally define the scope of the firm, the ends to which it wants to achieve and the means of doing so (its competitive advantage), which usually encompasses three dimensions, its customers/offering, geographic locations and vertical integration, its concerns for employees and other stakeholders. These should be clearly defined so as to guide management and employees in day to day decision making. Thus as Porter states that any strategic statement must begin with a definition of the ends that this strategy is designed to achieve, "If you don't know where you are going, any road will take you there".
It is used to help an organization to develop a set of baselines to show compliance and measure improvement. B2. Analyze the purpose of each framework design. • ISO 27002’s purpose is to provide an all-inclusive information security management program for any organization requiring a new information security management program, or wants to improve its existing policies. • COBIT’s purpose is to provide management and business process owners with an information technology governance model that helps in delivering value from IT and understanding and managing the risks associated with IT.