The Importance of Aligning IT Strategy and an Organization's Business Strategy: A Case Study of Metalco

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Strategic alignment maturity addresses the ability of organizations to adapt their IT and business strategies in a harmonious fashion. This alignment evolves into a relationship where the function of IT and other business functions adapt their strategies together. Early research on the topic has shown that organizations that show a high level of alignment maturity seem to be more capable of executing strategy as critical enablers of strategic alignment such as effective partnerships, communications, and governance manifest themselves through business-IT relationships and practices. This alignment of IT strategy and the organization’s business strategy is a fundamental principle that has been advocated for over a decade.

Within the strategic alignment maturity model, there are five conceptual levels;

1. Initial/Ad Hoc Process: Business and IT not aligned or harmonized

2. Committed Process: The organization has committed to becoming aligned

3. Established Focused Process: Strategic Alignment Maturity established and focused on business objectives

4. Improved/Managed Process: Reinforcing the concept of IT as a “Value Center”

5. Optimized Process: Integrated and co-adaptive business and IT strategic planning

As the business grows and increases the harmony between the IT strategy and business strategy, it climbs the conceptual levels of the model. As the level in the strategic alignment model rises, the alignment and convergence with the IT and business becomes more optimized. The alignment model suggests that IT strategies should both derive from and shape business strategies in a dynamic environment.

In order to decide which of the levels the organization fits into, there are levels of criteria to aid in the evalua...

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...nd flexibility while still retaining the competitive edge at each individual office.

In conclusion, classifying Metalco into a level of the strategic alignment maturity model can pose difficulty as not every criteria classification is straightforward. However, generalizing the strategic alignment criteria allows Metalco to fit within the four level of the maturity model. By leveraging IT assets on an enterprise-wide basis and the focus of applications systems is on driving business process enhancements to obtain sustainable competitive advantage, Metalco generally fits with these qualifications. Learning from their failures, they were also able to migrate and grow from a decentralized organizational structure to a better fitting centralized and federated structure. Although this move was reactive, it still positioned them to become successful in the long term.

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