Summary Survey: Strategic Alignment: Leveraging Information Technology for Modifying Organizations Essay

Summary Report: Ideal Alignment: Leveraging Information Technology intended for Transforming Agencies

Tactical Alignment: Leveraging Information Technology pertaining to transforming Organizations

Based on the paper of J. C. Henderson, In. Venkatraman (1993)

by

Philipp Maderthaner

A. Summary

Henderson and Venkatraman proposed an auto dvd unit for business В– IT positioning; it was meant to support the integration of information technology (IT) in to business strategy by promoting alignment between and within just four domain names (see figure 1). The inter-domain position is pursued along two dimensions: tactical fit (between the external and inside domain) and functional integration (between the organization domain plus the IT domain). The objective of this model was to give a way to help align information technology with business targets in order to understand value by IT opportunities. The authors argued the potential strategic impact details technology needs both an awareness of the important components of IT strategy and its particular role in supporting and shaping business strategy decisions and a procedure of continuous adaptation and change. Hence, that they presented an auto dvd unit that defines the range of strategic alternatives facing managers.

Physique 1 Ideal Alignment Unit

Two main imperatives for managers happen to be pointed out by Venkatraman and Henderson: 1st, similar to business strategy, THIS strategy has to consider both internal and also external aspects. Second, both equally internal/external position as well as useful integration should be taken into account. Only one of them is definitely not satisfactory.

Overview regarding the 4 dominant positioning perspectives:

1 ) Strategy execution

This strategy presumes that an articulated business strategy is the driver of both equally organizational design and style choices and the design of THAT infrastructure. The alignment has to be the most common and widely realized perspective, since it corresponds to vintage, hierarchical perspective of proper management.

Drivers: Business Technique

Role of Top Administration: Strategy Formulator

Role of computer Management: Strategy Implementer

Efficiency Criteria: Cost/Service Center

2 . Technology modification

This position involves the assessment of implementing the chosen business strategy through appropriate IT strategy plus the articulation with the required IT infrastructure and processes. This plan is not constrained by the current business design, although instead attempts to identify the perfect IT expertise through appropriate positioning in IT areas.

Driver: Business Strategy

Function of Best Management: Technology Visionary

Position of IT Administration: Technology Builder

Performance Conditions: Technology Leadership

3. Competitive Potential

This kind of perspective is involved with the fermage of appearing IT features to effects new products and services (business scope), influence the key advantages of strategy (distinctive competencies) and develop new forms of human relationships (business governance).

Driver: IT Strategy

Part of Top rated Management: Business Visionary

Function of IT Administration: Catalyst

Overall performance Criteria: Organization Leadership

four. Service Level

The assistance level positioning perspective focuses В– because the name shows В– on how to create a world-class IT service corporation. In this point of view the part of organization strategy is definitely indirect and it is viewed as required to ensure the effective use of IT.

Driver: IT Strategy

Role of Top Administration: Prioritizer

Position of IT Supervision: Executive Management

Performance Requirements: Customer Satisfaction

B. Questions

When ever one thinks the fit among strategy and organizational framework, one discusses a fit involving the external environment and inner factors. For what reason consider Venkatraman/Henderson IT both at the exterior and internal level, and not just as another internal factor just like organizational structure?

Within the business domain Venkatraman/Henderson argue, the fit among external placing and internal arrangement is essential for maximizing economic efficiency. This is...