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  • Essay / The importance of aligning IT strategy and...

    Strategic alignment maturity addresses the ability of organizations to adapt their IT and business strategies seamlessly. This alignment evolves into a relationship in which IT and other business functions adapt their strategies together. Early research on the topic has shown that organizations that demonstrate a high level of alignment maturity appear to be more capable of executing strategy because critical enablers of strategic alignment, such as partnerships , effective communications and governance, manifest through business-IT relationships and practices. This alignment of the organization's IT strategy and business strategy has been a fundamental principle advocated for more than a decade. In the Strategic Alignment Maturity Model, there are five conceptual levels: 1. Initial/Ad Hoc Process: Business and IT activities are not aligned or harmonized2. Process committed: The organization is committed to alignment3. Targeted process established: Strategic alignment maturity established and focused on business objectives4. Improved/managed process: reinforce the concept of IT as a “value center”5. Optimized process: integrated and co-adaptive strategic business and IT planning. As the company grows and increases the harmony between IT strategy and business strategy, it moves up the conceptual levels of the model. As the level of the strategic alignment model increases, alignment and convergence with IT and the business becomes more optimized. The alignment model suggests that IT strategies must both derive from and shape business strategies in a dynamic environment. In order to decide which level the organization fits into, there are levels of criteria to make the assessment easier. of paper...and flexibility while maintaining the competitive edge in each individual office. In conclusion, classifying Metalco into a level of the strategic alignment maturity model can pose difficulties because not all criteria classifications are straightforward. However, the generalization of strategic alignment criteria allows Metalco to fit into the four levels of the maturity model. By leveraging enterprise-wide IT assets and focusing application systems on business process improvement to achieve sustainable competitive advantage, Metalco generally meets these qualifications. Learning from their failures, they were also able to migrate and evolve from a decentralized organizational structure to a more suitable centralized and federated structure. Although this decision was reactive, it nevertheless positioned them for long-term success..