Strategic Allignment, Analysis Of Perspectives

STRATEGIC ALIGNMENT: ANALYSIS OF PERSPECTIVES
Preston Coleman
The University of Tampa pcoleman@ut,edu

Raymond Papp
The University of Tampa rpapp@ut.edu

Abstract
This paper focuses on the strategic alignment model and how it has been operationalized to enable assessment of an organization’s business and technology strategies into one of twelve defined alignment perspectives using aweb-based model. Analysis of data from a multi-year study suggests that certain industries favor specific alignment perspectives. Further analysis of longitudinal data appears to yield distinct patterns of strategy development among industries. Keywords: strategic alignment

Introduction
While the original concept of strategic alignment was developed more than a decade ago (McLean and Soden, 1977;IBM, 1981; Earl, 1983; Mills, 1986; Brancheau and Wetherbe, 1987; Parker and Benson, 1988; Henderson and Venkatraman, 1990 and 1996; Dixon and John, 1991; Niederman, et. al., 1991; Watson and Brancheau, 1991; Liebs, 1992; Luftman, Lewis & Oldach, 1993; Chan and Huff, 1993), it remains valuable to corporate executives looking to achieve alignment of their business and technology strategies (Robson,1994; Rogers, 1997; Papp, 1995; Luftman, Papp, & Brier, 1995; Papp, 2001 and 2004).

The Strategic Alignment Model
The Strategic Alignment Model is composed of four quadrants that consist of three components each. These twelve components define what each quadrant is as far as alignment is concerned. All of the components working together determine the extent of alignment for the company beingassessed (Henderson and Venkatraman, 1990; Papp, 2001). The model is divided into two distinct areas, business and information technology. Each area has two quadrants that define that part of the business (see Figure 1).

Business Strategy
In the business area the two quadrants are business strategy and organizational infrastructure. The components that make up business strategy are businessscope, distinctive competencies, and business governance. Business scope refers to everything that might effect the business environment. This includes markets, products, services, customers/clients, and the location of the business as well as buyers, competitors, suppliers, and potential competitors. The distinctive competencies component refers to all the things that make the business a success inthe market place. This includes the core competencies of the business that allows it to compete with other businesses. This also includes the brand, research, manufacturing and product development, the cost and pricing structure, and the sales and distribution channels used by the business. The third component of business strategy is the business governance component. This component refers to therelationships that exist between the stockholders of the company and senior management, mainly the board of directors. This also includes any governmental regulations and relations between other strategic business partners (Papp, 2004). Proceedings of the 2006 Southern Association for Information Systems Conference 242

Business
Business Strategy
Business Scope

IT
IT Strategy
TechnologyScope

Distinctive Competencies

Business Governance

Systemic Competencies

IT Governance

Strategic Fit
Administrative Structure IT Architecture

Processes

Skills

Processes

Skills

Organizational

Infrastructure

IT Infrastructure

Functional Integration
Adapted from Henderson & Venkatraman (1990)

Figure 1: The Strategic Alignment Model

BusinessInfrastructure
The second quadrant of the business area is organizational infrastructure. The components in this quadrant are administrative structure, business processes, human resource skills. Administrative structure refers to how the organization runs its business. This includes questions regarding centralized, decentralized, matrix, vertical, geographic, and functional organization types. The business...