Atrategic Alignment

1. STRATEGIC ALIGNMENT
Manahari Pemarathna
B.Sc.(Business Information System) Special Degree

2. Out Line
What is Strategic Alignment
Benefits of Strategic Alignment
Academically-based tool kits for strategic
alignment
Earl's Multiple Methodology
 Henderson and Venkatraman' s Strategic Alignment
Model

3. Strategic Alignment
Strategic Alignment is an ongoing process of
adjustment that organization use to achieve
interconnection between business objectives and
strategies and information technology goals and
strategies in order to gain competitive
advantage.

4. Benefits of Strategic Alignment
Improve business performance
Achievement of competitive advantages
Organization agility
Operational efficiency
IT Cost Reduction
Risk Management

5. Academically-based tool kits for
strategic alignment
Earl's Multiple Methodology
 Henderson and Venkatraman' s Strategic
Alignment Model

6. 1. Earl's Multiple Methodology

7. Earl pioneered a multiple methodology with
three approaches;
Top down
Bottom Up
Inside out

8. 2. Henderson and Venkatraman' s
Strategic Alignment Model
• Developed by Henderson and Venkah·aman
(1993), and focuses on four main components:
1. business;
2. business strategy;
3. IT;
4. IT strategy.

10. Strategic framework model has four domains
Basically two are internal and other two are
external
External domains are considered as strategy
domains;
Business Strategy domain
IT Strategy domain

11. Internal domains also known as infrastructure
domains;
Business Infrastructure
IT infrastructure

12. Business Strategies
Business Scope
Business Governance
Distinctive competencies

13. Business Infrastructure
Administrative Structure
Processes
Skills

14. IT Strategy
Technology Scope
Systematic Competencies
It governance

15. IT infrastructure
Architecture
Processes
Skills

16. Four perspective of SAM
Strategy Execution
Technology Transformation
Competitive Potential
Service Level

17. Strategy Execution
Business
Strategy
Organization
Infrastructure I/T Infrastructure
I/T Strategy

18. Technology Transformation
Business
Strategy
Organization
Infrastructure I/T Infrastructure
I/T Strategy

19. Competitive potential
Business
Strategy
Organization
Infrastructure I/T Infrastructure
I/T Strategy

20. Service Level Perspective
I/T Infrastructure
Business
Strategy
Organization
Infrastructure

21. Thank You