2. Role of IT has shifted beyond its traditional back office support
model to provide an integral part of an organisational strategy.
Organisations fail to realise the value of IT investments due to the
lack of alignment between the business and IT strategies of an
organisation.
Strategic Alignment ensures that the operating elements of the
company all work in harmony.
Proper alignment will allow an organisation to use information
technology efficiently to achieve its business objectives.
2
3. The Strategic Alignment Model (SAM) is based on the concept of
strategic fit between external and internal views and the functional
integration between organisational and technology views.
One of the most popular models used in analysing and
understanding strategic alignment.
3
4. There are four domains involved in the strategic
alignment model. There are two internal and two
external domains.
External: Business Strategy and IT Strategy
Internal: Business Infrastructure and IT
Infrastructure
4
6. Business Infrastructure
IT Infrastructure
6
7. These linkages are necessary because the all the quadrants
and components have to work as a whole unit.
Strategic fit refers to the use of strategy to determine the
infrastructure of the business.
Functional integration is most directly related to information
technology and the alignment of the business.
7
9. Anchored on the notion that a business strategy has been articulated
and is the driver of both organisational design choices and the
design of IS infrastructure.
Priority is to improve business processes which places focus on
changing business infrastructure.
IT focus is on application development, driven by need to support
business infrastructure.
9
11. The Wolf Organisation is a traditional manufacturing company
located in Pennsylvania.
As competitors threatened, Wolf built an enterprise resource
planning platform for growth, efficiency and productivity.
In ten years, Wolf doubled revenues and positioned itself for
expansion.
11
12. Business Strategy
Dedicated to expanding their markets.
Achieving Competitive Advantage.
Providing exceptional customer service to their customers.
Business Infrastructure
Management team is an experienced group of professionals
dedicated to building better business through service to company
and community.
Old billing system not meeting customer requirements or keeping up
with competitors.
To enable business improvement initiatives Wolf implemented SAP
within the company.
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13. IT Infrastructure
Relies on technological innovation. It became one of the first midsize
companies to partner with SAP.
Recent implementation of SAP Biller Direct has helped to strengthen
existing customer relationships and lay the groundwork for building
new relationships in a tighter market.
Listening to its customers, Wolf integrated Web-based billing,
empowering customers who want a digital relationship and
stimulating real-time collaboration.
13
14. Reduced customer and Wolf financial fees.
Built entry barriers to competitors.
Enhanced customer loyalty and collaboration.
Alignment enabled better relationships with customers by meeting
customer demand and improving billing detail.
Improved communications with regional partners and employees.
14
15. This perspective is anchored on the notion that a business strategy
through appropriate IT strategy and the articulation of the required
IS infrastructure and processes.
Role of top management is that of the Technology Visionary.
Role of IS manager is that of the Technology Architect.
16. Implement Chosen Business Strategy
Identify the value of Information Technology.
Identify the best possible IT competencies.
identify the corresponding internal IS architecture.
The technology transformation model is the ability to transform
technology into business success.
17.
18. Business Strategy
Deliver Creative Technology Solution
Deliver Value
Competitive Advantage
IT Strategy
Commitment to a Technology Alliance
Expanding and Strengthening their Strategic Relationships
19. IS Infastructure
Samsung combined its hard disk drive operations into Seagate.
A NAND flash memory supply agreement under which Samsung
will provide Seagate with its market-leading semiconductor
product.
A disk supply agreement under which Seagate will supply disk
drives to Samsung.
20. Conclusions
This Alignment enabled both Companies to better align their
current and future product.
Accelerate time-to-market for new products.
Positioned the companies to better address rapidly evolving
opportunities in the markets.
This alignment significantly expanded Seagate’s customer access
in China and Southeast Asia.
21. Leveraging of
existing/emerging IT
capabilities.
Anchor- IT strategy
Pivot- Business
Strategy
Impacted- Business
Infrastructure
Needs a dynamic
business model
22. Flextronics produce components,
circutboards based in Hollyhill, Cork.
IT strategy initiative to improve data use.
Business strategy- New Quality Management
approach.
Infrastructure? New flow of information,
improved CRM
More detailed overview of production.
23. Employees: 38,100
Revenue: US$15.3 billion
Plants on 5 continents
IT Driven- Opportunity to integrate software,
improve quality management and quality
management.
Business Strategy change in expectation and
standards.
New performance measurement tools and
share knowledge worldwide
24. Business Strategy IT Strategy
Scope Scope
Competencies Competencies
Governance Governance
Business Infrastructure IT Infrastructure
Structure Infrastructure
Processes Processes
Skills Skills
25. • Service level alignment is anchored on the notion
that IT strategy is the driver of the perspective and
it focuses on how to build world class IT/IS
organisation within a business.
• The role of top management is that of prioritizer.
• The role of IS management is that of executive
leadership.
• Performance criteria is that of Customer
satisfaction.
26. IT Strategy
• Maintain business strategy of providing the best service for
the lowest price
• High levels of IT utilization.
• High level of IT innovation.
• Create customer loyalty through interactive customer
technology and experience.
27. IS Infrastructure.
• Customer ability to track package/product via GPS.
• Error handling programmes.
• High use of logistics benefiting business process and
customer trust and satisfaction.
• Online return policy with customer, UPS and the vendor.
• Shipment updates via mobile apps.
• Reroute abilities through IT capabilities.
• Data delivery system of companies can be attached to the UPS
server.
28. Business Infrastructure
• Enabling employees the skill set to operate all
technology and new technology innovations.
• Integrating the advanced IT into the basic business
process.
• The provision of high levels of information to
customers with the same low prices.
29. Conclusion
◦ UPS is a world leader in the postal service business.
◦ It was the first postage service to provide the customer
with the technology experience.
◦ UPS’s IS infrastructure has led them to gain competitive
advantage over their rivals on the basis of the best
service for the best value.
◦ UPS are very progressive expansion wise and our
becoming leaders in the business in the European and
Asian market.
30. Example
of how IT can bring
harmony between strategies.
Exploitation through IT.
