Business IT Alignment to achieve/sustain competitive edge
Aim and objective
To choose the suitable model for achieving and sustaining competitive edge amongst the models available.
A key concern of business executives is alignment i.e. applying IT in an appropriate and timely way with business strategies, goals, and needs. A number of attempts have been made to clarify business and IT alignment of which several models are made available by practitioners and academic fields. Today businesses move too fast for this traditional models. In the business world, to be competitive means to move beyond in innovation and adopt iterative approach to developing business-technology strategies that assumes changes and focuses relentlessly on innovation of the core business competencies that will sustain competitive edge overa long term(Sharyn Leaver 2011). The question is, were businesses able to achieve competitive edge by adapting to the Business IT Alignment models available?
Methodology
Reviewing existing models on Business/IT Alignment, looking into analysis of the models from other practioners and analysts on the existing models from books, journals, publications, surveys questionnaires.
Findings
The paper suggests that organizations need to achieve business and IT alignment to be competitive because of the impactit has business performance and IT effectiveness by looking into which of the models available is best suitable to achieve/ sustain competitive edge based on four strategic and IT business alignment models: Strategic Alignment Model(SAM) proposed(Henderson and Venkatraman). SAM is composed of two main dimensions namely the strategic fit and functional integration. Strategic fit which looks into the unity between internal and external domains. The functional integration part which consist of two type of integration. First type being strategic integration and reflects the link between business strategy and IT strategy. The second type is operational integration and deals with the link between organizational infrastructure and process, and IT infrastructure and process (Henderson and Venkatraman 1993). SAM is one of the most cited strategic alignment models(Chan and Reich, 2007a), Strategic Alignment Maturity Model(SAMM) which is one of the best known models based on the components of (SAM) by Luftman (2000) which focused on six components namely communication, competency/Value measurements, Governance, partnership, Scope and Architecture and lastly Skills in a business. Information System Strategic alignment modelproposed by Chan & Huff(1993)