Even though strategic alignment between business and information technology organizations continues to be a stated and the desired goal of firm executives, the methods to achieve such a state of alignment remains enigmatic. The objective of alignment includes two primary aspects; the delivery capability of the IT organization and the overall fiscal return on the investment made in IT by the business. If the strategic directions of a firm and the IT organization are divergent, then a status of alignment is less likely to be achieved and maintained over time. An effective IT organization with a capability to deliver information services translates to a better return on IT investment. Better alignment between the business and IT results in superior delivery capability. The objective of this study is to investigate the extent of the impact that the choice of business strategy has on the elements of strategic alignment and the delivery capability of the IT organization through the eyes of the IT executive. By identifying the level of alignment and degree of delivery capability in terms of strategic typology model (STM) types, it is possible to predict the impact on the IT organization as a firm’s strategy evolves. The results of this study indicated that higher degrees of IT strategic alignment occur in the prospector and analyzer types. These two strategic modes are most useful in generating IT capability over time. It was concluded that shouldering the CIO with the task of unilaterally creating IT alignment fails to recognize that alignment requires strategic orientation from the combined executive leadership, and matches a prospector or analyzer type.
|Subjects||Management; Information technology; Computer science|
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