Using tactical and operational factors to assess strategic alignment: an SME study

The strategic use of Information Technology (IT), better known as strategic alignment, has significantly increased, as a result of the strong dependence of organisational activity on Information Systems (IS) and their related technologies. Strategic alignment is considered as a key element to improve performance on organisations, enhance efficiency and allow organisations to be more competitive in their respective industry. One of the first steps towards achieving strategic alignment is to have adequate means to measure it. Current assessment approaches, though, are mainly focused at the strategic level but provide little insight at tactical and operational levels, which are recognized as important areas for achieving strategic alignment. Furthermore, most of the existing approaches are tested in large organisations and there is little research on assessing the effectiveness of these approaches for Small and Medium Enterprises (SMEs). This paper proposes an alternative instrument that rather than focusing only at the strategic level it aims to have a better understanding by measuring alignment at tactical and operational levels. Finally this paper presents the findings of applying this instrument on an SME

An evaluation of the goal-oriented approaches for modelling strategic alignment concept

Several frameworks have been proposed in Requirements Engineering (RE) discipline that use goal-oriented approach to model the concept of strategic alignment. Understanding the concept of strategic alignment from the perspective of Management Information Systems (MIS) discipline and evaluating goal-oriented approaches in the context of strategic alignment appear to be the fundamental weakness in the RE frameworks that claim to model strategic alignment. In this research we developed a list of constructs by analysing the concept of strategic alignment embedded in strategy map which is one of the widely used frameworks to develop strategic alignment in MIS discipline. In this regard we analysed details of a case study conducted to develop strategic alignment. Against the identified list of constructs we evaluated five well-known goal-oriented approaches and presented their level of effectiveness to model the concept of strategic alignment. © 2011 IEEE

Tracking strategic alignment with EcQ - The Strategic Alignment Monitor

This article discusses and analyzes a new measure designed specifically to track employee alignment and its drivers, named “EcQ® - The Strategic Alignment Monitor”. How can managers identify whether employees support the company’s strategic issues? The EcQ provides companies with a tool capable of measuring this alignment and reveals weaknesses and strengths in its drivers.Este artigo discute e analisa uma nova medida desenvolvida especificamente para mensurar o alinhamento interno das empresas e seus determinantes. Essa medida é denominada “EcQ® - Monitor de Alinhamento Estratégico”. Como identificar se os empregados estão alinhados às questões estratégicas da empresa? O EcQ permite mensurar esse alinhamento e revela os pontos fracos e fortes de seus determinantes.Tiene por objetivo discutir y analizar una nueva medida desarrollada específicamente para mensurar el nivel de alineación interna de las organizaciones y sus determinantes. Dicha medida se denomina “EcQ® - Monitor de Alineación Estratégica”. ¿Cómo se puede identificar si el comportamiento de los empleados está alineado con los objetivos estratégicos de la empresa? El EcQ permite mensurar esa alineación y revela los puntos fuertes y débiles de sus determinantes

FACTORS INFLUENCING THE STRATEGIC ALIGNMENT OF INFORMATION TECHNOLOGY WITH BUSINESS IN THE TOURISM INDUSTRY

For the last two decades, information technology (IT) in general, and information systems (IS) in particular have rapidly advanced in capability and have changed the way organizations do business. For many organizations, IT spending constitutes one of the biggest investments each year and as a result, the strategic alignment between information technology (IT) and business has been a priority for information system practitioners and business executives. However, the conditions under which IT can be used for competitive advantage continues to be a major challenge. The objectives of this thesis were to identify the behavioral, technical and organizational underlying strategic alignment factors, and to investigate strategic alignment influence of the use of IT for competitive advantage. The findings of this study further extend the strategic alignment research stream. This was achieved by developing, empirically testing, and validating the second-order strategic alignment factor model to investigate the influence of the strategic alignment between IT and business on the use of IT for competitive advantage. Using the survey method, a mail questionnaire has provided 202 respondents of IT and business executives from the Malaysian service sector (Tour and Travel agents). The data were analyzed using structural equation modeling (SEM) techniques to validate the hypothesized second-order strategic alignment factor model. Confirmatory factor analysis supported the coordination of IT planning with business planning; communication between IT and managers; human resource skills maturity; IT infrastructure flexibility; and organizational change adaptability as the underlying strategic alignment factors. The analysis also supported that strategic alignment between IT and business to positively influence the use of IT for competitive advantage. Furthermore, the hypothesized second-order strategic alignment factor model demonstrated an adequate model fit with the sample data. Hence, the hypothesis that the proposed second-order factor model fits the data was supported. The study has made theoretical and practical contributions. First, the theoretical contribution, the proposed second-order strategic alignment model of this study has vii extended the cumulative research of aligning IT strategy with business strategy by examining how strategic alignment can influence the use of IT for competitive advantage. Another theoretical contribution is that, strategic alignment is specified as a second-order construct, derived from the first-order constructs; which are a coordination of IT and business planning factor; communication between IT and business managers factor; human resource skills maturity factor; IT infrastructure flexibility factor; and organizational change adaptability factor. The revised secondorder strategic alignment factor model not only has acceptable model fit, but also performs better than the alternative model. This study has provided a validated and tested research model that will be an important tool for practitioners and managers to be able to know and assess the underlying strategic alignment factors, and the influence of strategic alignment of the use of IT for competitive advantage

The Influence of Enterprise Systems on Business and Information Technology

Business strategy is important to all organizations. Nearly all Fortune 500 firms are implementing Enterprise Resource Planning (ERP) systems to improve the execution of their business strategy and to improve integration with its information technology (IT) strategy. Successful implementation of these multi-million dollar software systems are requiring new emphasis on change management and on Business and IT strategic alignment. This paper examines business and IT strategic alignment and seeks to explore whether an ERP implementation can drive business process reengineering and business and IT strategic alignment. An overview of business strategy and strategic alignment are followed by an analysis of ERP. The “As-Is/To-Be” process model is then presented and explained as a simple, but vital tool for improving business strategy, strategic alignment, and ERP implementation success

The impact of triadic strategic alignment on organisational performance in Yemen

A thesis submitted to the University of Bedfordshire, in fulfilment of the requirements for the degree of Doctor of Philosophy in Business ManagementTo survive and succeed in the very competitive business environment, firms should have a clear business strategy supported by appropriate information technology (IT) and marketing strategies. Whilst many prior studies argue that strategic alignment between, for example, business strategy and IT strategy generally enhances organisational performance, strategic alignment including multiple factors has received little attention and strategic orientation of firms is rarely considered. This research, drawing on configurational theory and strategic management literature, aims to understand the performance impact of triadic strategic alignment between business, IT, and marketing strategies based on strategic orientation of firms. A number of hypotheses are proposed to examine the relationship between triadic strategic alignment and organisational performance through the use of structural equation modelling, and to identify generic types of triadic strategic alignment. The hypotheses are tested through MANOVA using data collected in a questionnaire survey of 242 managers in Yemen. The findings indicate that (1) there is an ideal triadic strategic alignment for prospectors and defenders; (2) triadic strategic alignment has a positive impact on organisational performance; and (3) triadic strategic alignment provides a better indication of the nature and performance impact of strategic alignment. Follow-up interviews were also conducted to support the arguments and to clarify how strategies should be aligned. This research also contributes to managers’ knowledge and understanding by suggesting how a firm should coherently align its strategies to improve organisational performance

The Impact of Aligning Business, IT, and Marketing Strategies on Firm Performance

In order to succeed in today's competitive business environment, a firm should have a clear business strategy that is supported by other organizational strategies. While prior studies argue that strategic alignment enhances firm performance, either strategic alignment including multiple factors or strategic orientation of firms has received little attention. This study, drawing on contingency theory and configuration theory, investigates the performance impact of triadic strategic alignment among business, IT, and marketing strategies while simultaneously considers strategic orientation of firms. A research model is tested through SEM and MANOVA using data collected in a questionnaire survey of 242 Yemen managers. The findings indicate that (1) triadic strategic alignment has a positive impact on firm performance and (2) there is an ideal triadic strategic alignment for prospectors and defenders. This research contributes to strategic alignment literature and managers' understanding of how to align business, IT and marketing strategies to improve firm performance

Achieving strategic alignment: a decision-making perspective

Beyond studies related to the importance of strategic alignment between business strategy and IS strategy as well as establishing a number of enablers and inhibitors, there is a paucity of research on how organizations actually achieve strategic alignment. We conceptualize the process of achieving strategic alignment from a decision-making perspective by deductively drawing upon extant literature on strategic alignment and decision-making. Preliminary data collection from two case studies, out of four theoretically selected research sites, followed by data analysis based on analytic induction uncovers evidence in support of the conceptual framework. New insights reveal that the structure of the decision-making process inherent in achieving strategic alignment is shaped by organizational and decisional factors. In addition, the nature of the IT artifact and the availability of slack resources at the organizational level shape the rigor and the due-diligence associated with achieving strategic alignment, potentially suggesting the existence of additional decision-making routines

Information Systems Strategic Alignment Maturity Levels: Corporate and Project Implementation Perspectives

Deriving value from Information Systems (IS) investments has been a great concern in most organizations. IS strategic alignment also known as Business-IS alignment has been argued as one of the approaches of achieving IS investment value. Various researchers have proposed approaches to understanding the importance, achievement and maintenance of strategic alignment in organizations. This research used a strategic alignment assessment framework derived from Luftman’s Strategic Alignment Maturity Model (SAMM) to establish alignment maturity levels of public universities in Kenya. The approach adopted considers both Corporate (decision making) level and Project (IS implementation) level in evaluating strategic alignment maturity of an organization. Survey questionnaires were used in data collection and quantitative data analysis was employed. The study found out that the alignment maturity scores was higher at IS project implementation level as compared to corporate level. There was also consistency in alignment maturity scores ranking of factors in the two levels with communication and partnership scoring high at both levels while the human resource skills were ranked lowest at both levels. Keywords: Strategic alignment, Information Systems Investments, Strategic Alignment Maturity Model (SAMM), IS project implementatio

Re-conceptualizing IS Strategic Alignment: the Translated Strategic Alignment Model (TSAM)

In this article, we propose a new conceptualization of strategic alignment leading to the proposal of a new model: the Translated Strategic Alignment Model (TSAM). We adopt a grounded theory approach, while studying three corporations. We then extend our research to other corporations through a Delphi method with five experts (IS consultants). The model of strategic alignment that we propose includes a three-level network involving the essential alignment of various stakeholders’ needs. We bring forward a new perspective on the fits traditionally studied in the literature and we propose seven fits whose “shores”1 make sense to practitioners. In corporations TSAM may open a new path leading to the achievement of organizational performance and competitive advantage in an organizational climate which may be socially enhanced