The Strategic Alignment Model (SAM) focuses on the dynamic relationship between business strategies and IT, aiming to create and exploit opportunities through technology. It consists of frameworks that analyze strategic fit and functional integration, emphasizing the need for coordinated IT and business strategies to drive processes and competitive potential. Examples included demonstrate the practical application of SAM, such as Federal Express adapting its strategy through emerging IT capabilities.

1. Strategic Alignment
Model (SAM)
BY:
ABHISHEK PACHISIA
MBA – IT (A)

2. What is SAM?
“Strategic Alignment between Business and IT occurs when IT is used
dynamically to create and exploit Business opportunities. It can be used
then to transform business processes and also to create business
dislocations in the market place.” – Boar (1994)
• Framework
 Business & IT Strategy
• Venkatraman, Henderson and Oldach – 1993
• Analysing & Undestanding Strategic Alignment.

3. Assumptions
• Economic Performance Ability of Management
• Strategic fit is inherently dynamic

4. SAM - Domains

5. Strategic Fit and Functional
Integration
• All Quadrants work as a whole unit
• Strategic Fit
• Determine Infrastructure of Business
• Functional Integration
• Information Technology
• Alignment of the Business

6. Perspectives of SAM
• Strategy Execution
• Technology Transformation
• Competitive Potential
• Service Level

7. Strategic Execution
Business strategy has been
articulated and is driver of both
organizational design and IS
design
• Example: iGate

8. Technological Transformation
• Implementing business strategy
through appropriate IT strategy
and processes.
• Seeks to identify best IT
competencies and corresponding
IS structure

9. Competitive Potential
• Implementing new IT strategies
to impact new products and
services
• Example:
• Federal Express Corp
• Adaptation of business
strategy via emerging IT
capabilities.

10. Service Level
• Building world class IS service
organization.
• Understanding of external
dimensions of IT strategy with
corresponding internal design of
infrastructure and processes
• Seeks to identify best IT
competencies and corresponding
IS structure