This document discusses the importance of aligning information technology (IT) with business strategy to enhance performance and competitiveness. It outlines the critical role of IT strategy, the commitment required for successful implementation, and various strategies that organizations can adopt. Additionally, it emphasizes the need for strategic alignment in technological capabilities and decision-making processes to achieve superior business outcomes.

1. Module 2 Managing Technology
Topic 3: Align Information
Technology and Business
Strategy

2. What is IT strategy?
The mission critical, long-term IT
choices made by a firm.
Commitment to build IT capability

3. Why acquiring IT capability?
To create new businesses, to expand
an existing market, and to discern new
strategic directions
To survive
To improve performance
To distinguish an organization in the
marketplace

4. Successful IT Implementation
Commitment to IT strategy
Alignment between IT and business
strategies
Role of Chief Information officer
Top management support

5. Types of IT Strategy
IT leader strategy
IT follower strategy
Niche strategy
When to use what IT strategy?

6. Strategic Alignment Process
IT strategy
Business strategy
Organization infrastructure and process
IS infrastructure and process

7. The Concept of ‘Fit’
Three perspectives (Alder 1989)
Business and technology strategy
Technology poster and functional
decision making practice
Synergy between decision making
practices

8. Technology Strategy Field
Consists of
Particular dimensions of technology policy
that is related to business strategy
Integrative models that prescribe fit between
technology policy and business strategy
Empirical links between technology strategy
and business strategy

9. Business Competitiveness &
Technology Strategy
Manager should (Clark, 1989)
Understand their technological base
Take an international perspective
Discipline their business function
around the production function
Integrate all business functions
Focus on time as the critical factor

10. Strategic Technology
Management Process
3 Key areas (Betz 1993)
Identification and development of a
firm’s technological capabilities
Products/processes that provide
competitive advantages
Integration of areas one and two

11. Technology and Business
Outcomes
Technology is critical to business outcomes
Characteristics of best practices include
Championship of technology issues
Adequate levels of technological competence
Selection of the structural for of the unit
Coupling between a technology function and
others
Extent and timing of technology control
Technology transfer mechanisms

12. Technology Strategy &
Leadership
Technology strategy plays an important
role in enabling firms to achieve their
leadership position

13. Summary
Superior performance characteristic
(textbook, p. 30)
Technology is a means, not an end in
itself.
Capable people are valuable resources.
Technology needs to be planned and
exploited within and through the “big
picture” context.

14. Strategic Alignment Framework
Luftman, J.N., Lewis, P.R., and Oldach, S.H.
"Transforming the Enterprise: The Alignment
of Business and Information Technology
Strategies." IBM Systems Journal ,Vol. 32,
No. 1, 1993, p. 198- 221.
Luftman, J. and Brier, T. "Achieving and
Systaining Business-IT Alignment." California
Management Review, 42(1), Fall 1999, p 109-
122.