Strategic Alignment

STRATEGIC ALIGNMENT: LEVERAGING INFORMATION TECHNOLOGY FOR TRANSFORMING ORGANIZATIONS

INTRODUCTION OF STRATEGIC ALIGNMENT

This journal is by J.C Henderson and N. Venkatraman talking about the information technology that has evolved from its traditional orientation of administrative to be more strategic in an organization. There have fundamental frameworks within which to understand the potential of internet technology for tomorrow’s organizations. In this journal, we can know about the strategic alignment and how to develop a model for conceptualizing and also for emerging the area of strategic management of information technology. Strategic alignment model is defined in term of four fundamental domains for strategic choice that is business strategy, information technology strategy, organizational infrastructure and processes, and also information technology infrastructure and processes.

Besides that, this power of alignment strategy can be describe in two fundamental characteristics of strategic management. First fundamental is a strategic fit about the interrelationships between external and internal components. Second fundamental is functional integration is about integration between business and functional domain. In this topic, we can know the role and the impact of information technology on today’s organizations that has been changed over the last decade. Across the wide markets and countries, information technology has been transcending it’s the traditional of “back office” role and evolving toward “strategic” role with the potential but is not only to support chosen business strategies but also to shape new business strategies.

KEY POINT OF STRATEGY ALIGNMENT

Other than that, the inability to realize value from IT investments is a part of lack of alignment between the businesses IT strategies of organizations. The concept of alignment strategy is based on two fundamental assumptions the is first is based on economic performance is directly...