Strategic Alignment - Revision history

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-There are many definitions of strategic alignment. In the article written by Tallon and Kraemer, 1998; they define strategic alignment as the extent to which the IS strategy supports and is supported by the business strategy. Silvius (2007) defines strategic alignment as the degree to which the IT applications, infrastructure, and organization, business strategy, and processes enable and shape, as well as the process to realize this. Reich and Benbazat (1996) define strategic alignment as the degree to which the IT mission, objective, and plans support and are supported by the business mission, objectives, and plans. Maes et al. (2000) define strategic alignment as the continuous process - involving management and design sub-processes—of consciously and coherently interrelating all components of the business-IT relationship in order to contribute to the organization’s performance over time. Luftman (2000) argues that strategic alignment refers to applying Information Technology in an appropriate and timely way, in harmony with business strategies, goals, and needs. Henderson and Venkatraman (1993) state that strategic alignment is defined in terms of four fundamental domains of strategic choice: business strategy, information technology strategy, organizational infrastructure and processes, and information technology infrastructure and processes. Chan and Huff defined strategic alignment as the fit existing between business strategies and IS strategies. The difficulties in defining strategic alignment have also meant that it has been difficult to measure (Maes et al., 2000). Despite the existence of many definitions, a shared definition is lacking about strategic alignment. The lack of a shared definition does not mean that there is a lack of good knowledge within the strategic alignment area.<ref>[https://www.diva-portal.org/smash/get/diva2:318799/FULLTEXT01.pdf Different definitions of Strategic Alignment]</ref>
+There are many definitions of strategic alignment. In the article written by Tallon and Kraemer, 1998; they define strategic alignment as the extent to which the [[IT Strategy (Information Technology Strategy)|IS strategy]] supports and is supported by the [[Business Strategy|business strategy]]. Silvius (2007) defines strategic alignment as the degree to which the IT applications, infrastructure, and organization, business strategy, and processes enable and shape, as well as the process to realize this. Reich and Benbazat (1996) define strategic alignment as the degree to which the IT mission, objective, and plans support and are supported by the business mission, objectives, and plans. Maes et al. (2000) define strategic alignment as the continuous process - involving management and design sub-processes—of consciously and coherently interrelating all components of the business-IT relationship in order to contribute to the organization’s performance over time. Luftman (2000) argues that strategic alignment refers to applying Information Technology in an appropriate and timely way, in harmony with business strategies, goals, and needs. Henderson and Venkatraman (1993) state that strategic alignment is defined in terms of four fundamental domains of strategic choice: business strategy, information technology strategy, organizational infrastructure and processes, and information technology infrastructure and processes. Chan and Huff defined strategic alignment as the fit existing between business strategies and IS strategies. The difficulties in defining strategic alignment have also meant that it has been difficult to measure (Maes et al., 2000). Despite the existence of many definitions, a shared definition is lacking about strategic alignment. The lack of a shared definition does not mean that there is a lack of good knowledge within the strategic alignment area.<ref>[https://www.diva-portal.org/smash/get/diva2:318799/FULLTEXT01.pdf Different definitions of Strategic Alignment]</ref>
@@ Line 37: / Line 37: @@
 == Testing a Company’s Strategic Alignment (Figure 2.) <ref>[https://hbr.org/2016/05/a-simple-way-to-test-your-companys-strategic-alignment A Simple Way to Test Your Company’s Strategic Alignment ]</ref> ==
 One of the challenges for corporate leaders is how to make sense of strategic alignment at the team/business unit level (or division or department. However, it is classified) and at the enterprise level. There is a simple test you can perform to start an honest conversation about strategy and organizational effectiveness where you work. Think of your company in its entirety, or perhaps select a strategically important element of it, such as a growth area upon which future success depends or its primary source of income, and consider the following two questions:
-*How well does your business strategy support fulfilling your company’s purpose? The purpose is what the business is trying to achieve. Strategy is how the business will achieve it. The purpose is enduring – it is the north star towards which the company should point. The strategy involves choices about what products and services to offer, which markets to serve, and how the company should best set itself apart from rivals for competitive advantage. Think of your business and ask yourself, using a scale of 1 – 100, How well does our strategy support fulfilling our purpose? (If you are unclear on your company’s strategic priorities or its purpose, then the likelihood is that it does not.)
+*How well does your business strategy support fulfilling your company’s purpose? The purpose is what the business is trying to achieve. [[Strategy]] is how the business will achieve it. The purpose is enduring – it is the north star towards which the company should point. The strategy involves choices about what products and services to offer, which markets to serve, and how the company should best set itself apart from rivals for competitive advantage. Think of your business and ask yourself, using a scale of 1 – 100, How well does our strategy support fulfilling our purpose? (If you are unclear on your company’s strategic priorities or its purpose, then the likelihood is that it does not.)
 *How well does your organization support the achievement of your business strategy? “Organization,” as we’re using it here, includes all the required capabilities, resources (including human), and management systems necessary to implement your strategy. For instance, if your company seeks to beat competitors through superior customer service, is this reflected in the day-to-day behavior of staff and their interactions with customers? If innovation is a key strategic priority, does your organizational structure enable creative collaboration, risk-taking, and knowledge-sharing? To maintain strategic alignment, a company’s people, culture, structure, and processes have to flex and change as the strategy itself shifts. The symptoms of poor alignment are often obvious, especially to those who work in the company, but also to customers who do not experience the service they expect from a company’s branding and advertising. Using the same 1 – 100 scale, ask yourself: How well does our organization support the achievement of our strategy? If your organization cannot deliver its strategy, it is worthless, and your company’s purpose will go more or less unfulfilled.

← Older revision		Revision as of 10:37, 23 August 2023
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	== See Also ==		== See Also ==
−	*[[Business IT Alignment]]	+	#[[Business IT Alignment]]: This concept aligns business goals and IT functions. It's a subset of the broader notion of strategic alignment, specifically focusing on how technology supports and drives business strategy.
		+	#[[Strategic Planning]]: Strategic planning is the process of achieving strategic alignment. It's about defining the organization's strategy and then outlining the steps and operations needed to reach those strategic objectives.
		+	#[[Corporate Strategy]]: This term is the overarching strategy guiding an organization's decisions and actions. Strategic alignment ensures that all parts of the organization work in harmony with this corporate strategy.
		+	#Strategic Implementation: Strategic implementation is the next step once strategic plans are laid out. It's about executing the strategies and ensuring that the organization remains aligned with its strategic objectives during the execution phase.
		+	#[[Balanced Scorecard]]: The balanced scorecard is a performance metric used to identify and improve various internal functions and their resulting external outcomes. It assists organizations in achieving strategic alignment by balancing different performance perspectives.
		+	#[[Organizational Structure]]: How an organization is structured can significantly impact its ability to achieve strategic alignment. A well-structured organization can streamline processes and ensure that all units align with the strategic vision.
		+	#[[Change Management]]: When working towards strategic alignment, organizations often need to undergo changes, be it in processes, systems, or culture. Change management helps in ensuring that these changes are implemented smoothly and align with the strategic vision.
		+	#[[Strategic Fit]]: This term refers to how well an organization's resources and capabilities fit with the opportunities available in the external environment. Achieving a strategic fit is essential for effective strategic alignment.

@@ Line 73: / Line 73: @@
 [[IT Value Mapping]]<br />
 [[Strategic Planning Cycle]]<br />
-[[Strategic Vision]]<br />
+[[Business Vision]]<br />
 [[Strategy]]<br />
 [[Business IT Alignment]]<br />

← Older revision		Revision as of 20:12, 15 June 2022
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−	There are many definitions of strategic alignment. In the article written by Tallon and Kraemer, 1998; they define strategic alignment as the extent to which the IS strategy supports and is supported by the [[Business Strategy\|business strategy]]. Silvius (2007) defines strategic alignment as the degree to which the [[Application\|IT applications]], [[IT Infrastructure\|infrastructure]] and [[IT Organization (information technology organization)\|organization]], the business strategy and processes enable and shape, as well as the process to realize this. Reich and Benbazat (1996) define strategic alignment as the degree to which the IT mission, objective and plans support and are supported by the business mission, objectives and plans. Maes et al (2000) define strategic alignment as the continuous process - involving management and design sub-processes—of consciously and coherently interrelating all components of the business-IT relationship in order to contribute to the organization’s performance over time. Luftman (2000) argues that strategic alignment refers to applying Information Technology in an appropriate and timely way, in harmony with business strategies, goals and needs. Henderson and Venkatraman (1993) state that strategic alignment is defined in terms of four fundamental domains of strategic choice: business strategy, information [[technology strategy]], organizational infrastructure and processes, and information technology infrastructure and processes. Chan and Huff defined strategic alignment as the fit existing between business strategies and IS strategy. The difficulties in defining strategic alignment have also meant that it has been difficult to measure (Maes et al; 2000). Despite the existence of many definitions, a shared definition is lacking about strategic alignment. The lack of a shared definition does not mean that there is a lack of good knowledge within the strategic alignment area.<ref>Different definitions of Strategic Alignment [https://www.diva-portal.org/smash/get/diva2:318799/FULLTEXT01.pdf Royal Institute of Technology, KTH ]</ref>	+	There are many definitions of strategic alignment. In the article written by Tallon and Kraemer, 1998; they define strategic alignment as the extent to which the IS strategy supports and is supported by the [[Business Strategy\|business strategy]]. Silvius (2007) defines strategic alignment as the degree to which the [[Application\|IT applications]], [[IT Infrastructure\|infrastructure]] and [[IT Organization (information technology organization)\|organization]], the business strategy and processes enable and shape, as well as the process to realize this. Reich and Benbazat (1996) define strategic alignment as the degree to which the IT mission, objective and plans support and are supported by the business mission, objectives and plans. Maes et al (2000) define strategic alignment as the continuous process - involving management and design sub-processes—of consciously and coherently interrelating all components of the business-IT relationship in order to contribute to the organization’s performance over time. Luftman (2000) argues that strategic alignment refers to applying Information Technology in an appropriate and timely way, in harmony with business strategies, goals and needs. Henderson and Venkatraman (1993) state that strategic alignment is defined in terms of four fundamental domains of strategic choice: business strategy, information [[IT Strategy (Information Technology Strategy)\|technology strategy]], organizational infrastructure and processes, and information technology infrastructure and processes. Chan and Huff defined strategic alignment as the fit existing between business strategies and IS strategy. The difficulties in defining strategic alignment have also meant that it has been difficult to measure (Maes et al; 2000). Despite the existence of many definitions, a shared definition is lacking about strategic alignment. The lack of a shared definition does not mean that there is a lack of good knowledge within the strategic alignment area.<ref>Different definitions of Strategic Alignment [https://www.diva-portal.org/smash/get/diva2:318799/FULLTEXT01.pdf Royal Institute of Technology, KTH ]</ref>

← Older revision		Revision as of 15:14, 29 October 2021
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−	There are many definitions of strategic alignment. In the article written by Tallon and Kraemer, 1998; they define strategic alignment as the extent to which the ~~[[IT Strategy\|~~IS strategy]] supports and is supported by the [[Business Strategy\|business strategy]]. Silvius (2007) defines strategic alignment as the degree to which the [[Application\|IT applications]], [[IT Infrastructure\|infrastructure]] and [[IT Organization (information technology organization)\|organization]], the business strategy and processes enable and shape, as well as the process to realize this. Reich and Benbazat (1996) define strategic alignment as the degree to which the IT mission, objective and plans support and are supported by the business mission, objectives and plans. Maes et al (2000) define strategic alignment as the continuous process - involving management and design sub-processes—of consciously and coherently interrelating all components of the business-IT relationship in order to contribute to the organization’s performance over time. Luftman (2000) argues that strategic alignment refers to applying Information Technology in an appropriate and timely way, in harmony with business strategies, goals and needs. Henderson and Venkatraman (1993) state that strategic alignment is defined in terms of four fundamental domains of strategic choice: business strategy, information [[technology strategy]], organizational infrastructure and processes, and information technology infrastructure and processes. Chan and Huff defined strategic alignment as the fit existing between business strategies and IS strategy. The difficulties in defining strategic alignment have also meant that it has been difficult to measure (Maes et al; 2000). Despite the existence of many definitions, a shared definition is lacking about strategic alignment. The lack of a shared definition does not mean that there is a lack of good knowledge within the strategic alignment area.<ref>Different definitions of Strategic Alignment [https://www.diva-portal.org/smash/get/diva2:318799/FULLTEXT01.pdf Royal Institute of Technology, KTH ]</ref>	+	There are many definitions of strategic alignment. In the article written by Tallon and Kraemer, 1998; they define strategic alignment as the extent to which the IS strategy supports and is supported by the [[Business Strategy\|business strategy]]. Silvius (2007) defines strategic alignment as the degree to which the [[Application\|IT applications]], [[IT Infrastructure\|infrastructure]] and [[IT Organization (information technology organization)\|organization]], the business strategy and processes enable and shape, as well as the process to realize this. Reich and Benbazat (1996) define strategic alignment as the degree to which the IT mission, objective and plans support and are supported by the business mission, objectives and plans. Maes et al (2000) define strategic alignment as the continuous process - involving management and design sub-processes—of consciously and coherently interrelating all components of the business-IT relationship in order to contribute to the organization’s performance over time. Luftman (2000) argues that strategic alignment refers to applying Information Technology in an appropriate and timely way, in harmony with business strategies, goals and needs. Henderson and Venkatraman (1993) state that strategic alignment is defined in terms of four fundamental domains of strategic choice: business strategy, information [[technology strategy]], organizational infrastructure and processes, and information technology infrastructure and processes. Chan and Huff defined strategic alignment as the fit existing between business strategies and IS strategy. The difficulties in defining strategic alignment have also meant that it has been difficult to measure (Maes et al; 2000). Despite the existence of many definitions, a shared definition is lacking about strategic alignment. The lack of a shared definition does not mean that there is a lack of good knowledge within the strategic alignment area.<ref>Different definitions of Strategic Alignment [https://www.diva-portal.org/smash/get/diva2:318799/FULLTEXT01.pdf Royal Institute of Technology, KTH ]</ref>

@@ Line 1: / Line 1: @@
-[[Business]] Dictionary defines Strategic Alignment as "the [[process]] of bringing the actions of an [[organization]]'s business divisions and staff members into line with the organization's planned objectives." The ability of most businesses to achieve their strategic [[goals]] will benefit from performing a comprehensive strategic alignment to help assure that its divisions and employees are jointly working toward the company's stated goals.<ref>What is the meaning of Strategic Alignment? [http://www.businessdictionary.com/definition/strategic-alignment.html Business Dictionary]</ref>
+Business Dictionary defines '''Strategic Alignment''' as "the [[process]] of bringing the actions of an [[organization]]'s business divisions and staff members into line with the organization's planned objectives." The ability of most businesses to achieve their strategic [[goals]] will benefit from performing a comprehensive strategic alignment to help assure that its divisions and employees are jointly working toward the company's stated goals.<ref>What is the meaning of Strategic Alignment? [http://www.businessdictionary.com/definition/strategic-alignment.html Business Dictionary]</ref>
 Strategic alignment enables higher performance by optimizing the contributions of people, processes, and inputs to the realization of measurable objectives and, thus, minimizing waste and misdirection of effort and resources to unintended or unspecified purposes. In the modern, global business environment, strategic alignment should be viewed broadly as encompassing not only the human and other resources within any particular organization but also across organizations with complementary objectives (i.e., performance/business partners).<ref>Explaining Strategic Alignment [https://en.wikipedia.org/wiki/Strategic_alignment Wikipedia]</ref>
@@ Line 9: / Line 8: @@
-There are many definitions of strategic alignment. In the article written by Tallon and Kraemer, 1998; they define strategic alignment as the extent to which the IS [[strategy]] supports and is supported by the business strategy. Silvius (2007) defines strategic alignment as the degree to which the IT applications, infrastructure and organization, the business strategy and processes enable and shape, as well as the process to realize this. Reich and Benbazat (1996) define strategic alignment as the degree to which the IT [[mission]], [[objective]] and plans support and are supported by the business mission, objectives and plans. Maes et al (2000) define strategic alignment as the continuous process - involving [[management]] and [[design]] sub-processes—of consciously and coherently interrelating all components of the business-IT relationship in order to contribute to the organization’s performance over time. Luftman (2000) argues that strategic alignment refers to applying Information Technology in an appropriate and timely way, in harmony with business strategies, goals and needs. Henderson and Venkatraman (1993) state that strategic alignment is defined in terms of four fundamental domains of strategic choice: business strategy, information [[technology strategy]], organizational infrastructure and processes, and information technology infrastructure and processes. Chan and Huff defined strategic alignment as the fit existing between business strategies and IS strategy. The difficulties in defining strategic alignment have also meant that it has been difficult to measure (Maes et al; 2000). Despite the existence of many definitions, a shared definition is lacking about strategic alignment. The lack of a shared definition does not mean that there is a lack of good knowledge within the strategic alignment area.<ref>Different definitions of Strategic Alignment [https://www.diva-portal.org/smash/get/diva2:318799/FULLTEXT01.pdf Royal Institute of Technology, KTH ]</ref>
+There are many definitions of strategic alignment. In the article written by Tallon and Kraemer, 1998; they define strategic alignment as the extent to which the [[IT Strategy|IS strategy]] supports and is supported by the [[Business Strategy|business strategy]]. Silvius (2007) defines strategic alignment as the degree to which the [[Application|IT applications]], [[IT Infrastructure|infrastructure]] and [[IT Organization (information technology organization)|organization]], the business strategy and processes enable and shape, as well as the process to realize this. Reich and Benbazat (1996) define strategic alignment as the degree to which the IT mission, objective and plans support and are supported by the business mission, objectives and plans. Maes et al (2000) define strategic alignment as the continuous process - involving management and design sub-processes—of consciously and coherently interrelating all components of the business-IT relationship in order to contribute to the organization’s performance over time. Luftman (2000) argues that strategic alignment refers to applying Information Technology in an appropriate and timely way, in harmony with business strategies, goals and needs. Henderson and Venkatraman (1993) state that strategic alignment is defined in terms of four fundamental domains of strategic choice: business strategy, information [[technology strategy]], organizational infrastructure and processes, and information technology infrastructure and processes. Chan and Huff defined strategic alignment as the fit existing between business strategies and IS strategy. The difficulties in defining strategic alignment have also meant that it has been difficult to measure (Maes et al; 2000). Despite the existence of many definitions, a shared definition is lacking about strategic alignment. The lack of a shared definition does not mean that there is a lack of good knowledge within the strategic alignment area.<ref>Different definitions of Strategic Alignment [https://www.diva-portal.org/smash/get/diva2:318799/FULLTEXT01.pdf Royal Institute of Technology, KTH ]</ref>
@@ Line 37: / Line 36: @@
 '''Testing a Company’s Strategic Alignment (Figure 2.)'''<ref>A Simple Way to Test Your Company’s Strategic Alignment [https://hbr.org/2016/05/a-simple-way-to-test-your-companys-strategic-alignment Jonathan Trevor, Barry Varcoe]</ref><br />
 One of the challenges for corporate leaders is how to make sense of strategic alignment at both the team / business unit level (or division or department, however it is classified) and at the enterprise level. There is a simple test you can perform to start an honest conversation about strategy and organizational effectiveness where you work. Think of your company in its entirety, or perhaps select a strategically important element of it, such as a growth area upon which future success depends or its primary source of income, and consider the following two questions:
-*How well does your business strategy support the fulfillment of your company’s purpose? Purpose is what the business is trying to achieve. Strategy is how the business will achieve it. Purpose is enduring – it is the north star towards which the company should point. Strategy involves choices about what products and services to offer, which markets to serve, and how the company should best set itself apart from rivals for competitive advantage. Think of your own business and ask yourself, using a scale of 1 – 100, How well does our strategy support the fulfillment of our purpose? (If you are unclear on your company’s strategic priorities, or its purpose, then the likelihood is that it does not.)
+*How well does your business strategy support the fulfillment of your company’s purpose? Purpose is what the business is trying to achieve. Strategy is how the business will achieve it. Purpose is enduring – it is the north star towards which the company should point. Strategy involves choices about what products and services to offer, which markets to serve, and how the company should best set itself apart from rivals for [[Competitive Advantage|competitive advantage]]. Think of your own business and ask yourself, using a scale of 1 – 100, How well does our strategy support the fulfillment of our purpose? (If you are unclear on your company’s strategic priorities, or its purpose, then the likelihood is that it does not.)
 *How well does your organization support the achievement of your business strategy? “Organization,” as we’re using it here, includes all of the required capabilities, resources (including human), and management systems necessary to implement your strategy. For instance, if your company seeks to beat competitors through superior customer service, is this reflected in the day-to-day behavior of staff and their interactions with customers? If [[innovation]] is a key strategic priority, does your organizational structure enable creative [[collaboration]], [[risk]]-taking, and knowledge sharing? To maintain strategic alignment, a company’s people, culture, structure and processes have to flex and change as the strategy itself shifts. The symptoms of poor alignment are often obvious, especially to those who work in the company, but also to customers who do not experience the service they expect from a company’s [[branding]] and [[advertising]]. Using the same 1 – 100 scale ask yourself: How well does our organization support the achievement of our strategy? If your organization is incapable of delivering its strategy, the strategy is effectively worthless and your company’s purpose will go more or less unfulfilled.
@@ Line 69: / Line 68: @@
 ===See Also===
-[[Strategic_Management|Strategic Management]]<br />
+[[Strategic Management]]<br />
-[[Strategic_Alignment_Model|Strategic Alignment Model]]<br />
+[[Strategic Alignment Model]]<br />
-[[Strategic_Alignment_Maturity_Model|Strategic Alignment Maturity Model]]<br />
+[[Strategic Alignment Maturity Model]]<br />
-[[IT_Value_Mapping|IT Value Mapping]]<br />
+[[IT Value Mapping]]<br />
-[[Strategic_Planning_Cycle|Strategic Planning Cycle]]<br />
+[[Strategic Planning Cycle]]<br />
-[[Strategic_Vision|Strategic Vision]]<br />
+[[Strategic Vision]]<br />
-[[Strategy|Strategy]]<br />
+[[Strategy]]<br />
-[[Business_IT_Alignment|Business IT Alignment]]<br />
+[[Business IT Alignment]]<br />
-[[Business_Strategy|Business Strategy]]<br />
+[[Business Strategy]]<br />
-[[Corporate_Strategy|corporate strategy]]<br />
+[[Corporate Strategy]]<br />
-[[IT_Strategy_Framework|IT Strategy Framework]]<br />
+[[IT Strategy Framework]]<br />
-[[IT_Capability|IT Capability]]<br />
+[[IT Capability]]<br />
-[[Business_Capability|Business Capability]]<br />
+[[Business Capability]]<br />
-[[IT_Vision|IT Vision]]<br />
+[[IT Vision]]<br />
 [[E-Strategy|e-Business Strategy]]<br />
-[[IT_Governance|IT Governance]]<br />
+[[IT Governance]]<br />
-[[Enterprise_Architecture|Enterprise Architecture]]<br />
+[[Enterprise Architecture]]<br />
 [[IT_Strategy_(Information_Technology_Strategy)|IT Strategy]]
 ===References===