IT in construction: aligning IT and business strategies

Abstract

The extent to which information technology (IT) infrastructures and strategies are aligned with business processes and strategies varies widely along firms. The objective of this paper is to explain the success or failure of IT in construction firms by focusing on the alignment (or lack of it) between business strategy, IT strategy, organizational infrastructure, and IT infrastructure. It is hypothesized that the ‘fit’ among these elements, the domains of the Strategic Alignment Model, is positively related to the Business Value of IT in Construction. The IT Business Value is evaluated in terms of efficiency, effectiveness and business performance. By applying the Strategic Alignment Model to the Dutch construction industry, it is shown that the inadequate alignment between these domains is a major reason for the modest added business value from IT investments in this industry. The first lack of alignment is the technology shortfall: hence IT contributes in an inadequate way to strategic processes of construction firms. The second lack of alignment is the strategy-shortfall: hence the firm strategy impedes the implementation of IT that could generate a high business value