Information Systems Strategy

According to an article by Martinez-Simarro et al (2015, pg. 1592), it states that “despite the
importance of IS for organisations, the literature lacks a consistent definition and measurement
method for the concept of IS strategy”. I choose to use this writer’s definition of IS strategy
because it was explained in a broader context to other articles I read. The research by Martinez-
Simarro et al examined how implementing a particular IS strategy affects the relationship
between business strategy and competitive advantage regarding performance. They go on to say
that “a narrow concept of the IS strategy focuses on technology and the IS department to obtain
the alignment with business strategy”. Their definition is broader and integrates aspects such
as technology, human resources and business processes”. They adopt the concept that the IS
strategy is independent of an organization’s business strategy. The writers also acknowledge two
distinct types of IS strategy – the first one being an innovative IS approach and the second being
a conservative IS approach. The article states (pg. 1592) “organizations that continually pursue
innovation in IS are more likely to create and profit from unique IS that will potentially provide
competitive advantages”.

Business Strategy

A business strategy refers to the actions and decisions that a company takes to reach

its business goals and be competitive in its industry. It defines what the business needs to do to
reach its goals, which can help guide the decision-making process for hiring and resource

allocation

 Example of business strategies are

 Most innovative product or service.

 Grow sales from new products.

 Improve customer service.

 Cornering a young market.

 Product differentiation.

 Pricing strategies.
 Technological advantage.
Organization alignment provides greater transparency around who holds the decision rights in
the organization for each work activity. ... Organization alignment also allows employees to
focus on performing work rather than on figuring out who is supposed to do what and who needs
to be consulted when making decisions.

Strategic information systems (SIS) are information systems that are developed in response to

corporate business initiative. They are intended to give competitive advantage to the
organization. Its role is to support the key aspects of running an organization, such as
communication, record-keeping, decision making, data analysis and more. Companies use
this information to improve their business operations, make strategic decisions and gain a
competitive edge.

Achieving IT-business alignment: best practices

1. Change your thinking, change your doing. ...

2. View IT as an instrument for business transformation. ...
3. Make the customer experience the #1 factor. ...
4. Use a single language. ...
5. Be equally transparent to all departments.
6. Rotate IT and business employees to encourage understanding.

Why business IT alignment is important?

Business and IT alignment is critical for market impact and growth. This tactic means as
business goals pivot, IT can more readily respond with necessary solutions to support and
maintain enterprise momentum. In turn, technological advances and improvements are
hardwired into current and future strategies and initiatives.

What does business alignment mean?

Strategic alignment, for us, means that all elements of a business — including the market
strategy and the way the company itself is organized — are arranged in such a way as to best
support the fulfillment of its long-term purpose.
How do you align company goals?

The following are five methods to align these goals for mutual success:

1. Clear company goals. ...

2. Communicate the company strategy and vision relentlessly. ...
3. Employees set their own goals within the company framework. ...
4. Avoid incentives; focus on attaining goals. ...
5. Hire only the cultural fit.

Using information systems effectively requires an understanding of the organization,

management, and the technology shaping the systems. All information systems can be described
as organizational and management solutions to challenges posed by the environment. The
advances in information systems have affect on our day-today lives. As the technology is
growing . so are the opportunities in a healthy way to prepare the organization in the competitive
advantage environment In order to manage the IS/IT based systems, it is important to have an
appropriate strategy that defines the systems and provide means to manage them. Strategic
Information Systems Alignment (SISA) is an effective way of developing and maintaining the
IS/IT systems that support the business operations. Alignment of the IS/IT plans and the business
plans is essential for improved business performance,

Alignment of information systems (IS) strategy with business strategy is an important objective
if organizations are to use information technology resources effectively.

Creating and managing a business motivated IT organization for which the primary focus is
implementing information oriented solutions that are most important to meeting the business
goals, objectives, and strategies of the enterprise.
IT has become a critical part of almost every department. As a result, businesses have high
expectations of their technical investment. New technologies must now reduce costs, increase
security, enhance productivity or improve workflows and communications.

But despite the important role IT strategy plays, it often ends up as an afterthought. Bolted on to
the business strategy, rather than forming an integral part of it.

This means that every IT-related investment, activity, service or project must create or optimize
business value. Additionally, to further improve alignment, IT should be looking to achieve
business-related metrics

What are the benefits of alignment?

Utilizing an IT-business alignment model can help improve your business’s performance.
Leading to more efficient processes, faster response times and more efficient supply chains. This
is because all aspects of a business are not only working towards common goals, but are aware of
what other areas are doing.

 Everyone is working towards a common goal

 IT supports the business strategy, adds value and drives success
 Easier to control and manage risk and compliance issues
 Meets the IT demands consistently and efficiently
 Increases the agility of the business and allows it to react to changes
 Creates greater integrations and collaboration between departments

The Importance of Aligning Information Systems Strategy with Business Strategy 

Martinez-Simarro et al (2015) state that both IS strategy and business strategy are

independent of each other but I decided to use the concept where the IS strategy and
business strategy must be integrated to drive the success of a business. This is shown
within the framework of the Information Systems Strategy Triangle, (Pearlson &
 Saunders, 2009), where business strategy ,IS strategy and organisational strategy are all
related.

Alignment is required for success. there are higher states such as synchronization and
convergence. Synchronization involves not only allowing technology to enable current business
strategy but it should also anticipate and shape the future business strategy. Convergence means
that both the IS strategy and business strategy are intertwined.

the use of information systems within a business context. Information systems are the
technology used to drive a business forward. Without an information system, a business cannot
survive in todays competitive business environment. Information systems have massive
advantages for businesses; they allow  information to be obtained at a fast speed, provide
efficiencies beyond the ability of the human brain, allow businesses to stay ahead of their
competitors, enhance communication and in turn allow for greater revenue and profits. The IS
strategy, in my opinion, is positioning the correct information systems within an organisation,
used to their maximum efficiency and potential, to drive a business forward.

Business strategy, in my understanding, are the goals and plans a business have to achieve a
higher position in the market than their competitors. A great business strategy allows for higher
market share, more satisfied employees, better customer experience of products and services and
higher profits. A business strategy is required for a organization to grow.

 
Summary

Alignment is critical to the successful deployment of IT within the business. Alignment requires
the involvement of Business as well as IT management. Alignment involves attitude changes in
both IT and the business. Alignment is a process not a project.