1. Module 2 Managing Technology
Topic 3: Align Information Technology and Business Strategy

2. What is IT strategy?
The mission critical, long-term IT choices made by a firm.
Commitment to build IT capability

3. Why acquiring IT capability?
To create new businesses, to expand an existing market, and to discern new strategic directions
To survive
To improve performance
To distinguish an organization in the marketplace

4. Successful IT Implementation
Commitment to IT strategy
Alignment between IT and business strategies
Role of Chief Information officer
Top management support

5. Types of IT Strategy IT leader strategy IT follower strategy
Niche strategy
When to use what IT strategy?

6. Strategic Alignment Process
IT strategy
Business strategy
Organization infrastructure and process
IS infrastructure and process

7. The Concept of ‘Fit’ Three perspectives (Alder 1989)
Business and technology strategy
Technology poster and functional decision making practice
Synergy between decision making practices

8. Technology Strategy Field
Consists of
Particular dimensions of technology policy that is related to business strategy
Integrative models that prescribe fit between technology policy and business strategy
Empirical links between technology strategy and business strategy

9. Business Competitiveness & Technology Strategy
Manager should (Clark, 1989)
Understand their technological base
Take an international perspective
Discipline their business function around the production function
Integrate all business functions
Focus on time as the critical factor

10. Strategic Technology Management Process
3 Key areas (Betz 1993)
Identification and development of a firm’s technological capabilities
Products/processes that provide competitive advantages
Integration of areas one and two

11. Technology and Business Outcomes
Technology is critical to business outcomes
Characteristics of best practices include
Championship of technology issues
Adequate levels of technological competence
Selection of the structural for of the unit
Coupling between a technology function and others
Extent and timing of technology control
Technology transfer mechanisms

12. Technology Strategy & Leadership
Technology strategy plays an important role in enabling firms to achieve their leadership position

13. Summary Superior performance characteristic (textbook, p. 30)
Technology is a means, not an end in itself.
Capable people are valuable resources.
Technology needs to be planned and exploited within and through the “big picture” context.

14. Strategic Alignment Framework
Luftman, J.N., Lewis, P.R., and Oldach, S.H. "Transforming the Enterprise: The Alignment of Business and Information Technology Strategies." IBM Systems Journal ,Vol. 32, No. 1, 1993, p
Luftman, J. and Brier, T. "Achieving and Systaining Business-IT Alignment." California Management Review, 42(1), Fall 1999, p