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It Strategy

Essay by   •  April 2, 2014  •  Research Paper  •  671 Words (3 Pages)  •  1,143 Views

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1. What is an IT Strategy?

Information Technology (IT) strategy is a comprehensive plan driven by the organization's Chief information Officer (CIO) assisted by the Chief technology Officer (CTO) to guide and control all facets of technology management to support business strategic goals and processes including vendor management, cost management, hardware, software, and risk management. Organizations IT strategy is usually captured in a balanced scorecard (BSC) map. BSC map is a flexible document that can be changed as the business priorities, budgetary constraints, core competences and market circumstances changes.

2. IT and Strategy

2.1. Can IT provide strategic advantage to an organization?

Information Technology is an integral part of business strategy and it can be a business differentiator if it supports the firm's ability to deliver results in a manner consistent with what (internal and external) business clients, partners and suppliers value. Organizations that have an effective IT strategy (e.g. technology, software, hardware, applications, governance) and align it successfully with their business strategy are able concentrate on their core competency and tend to gain a competitive advantage over their competitors. One such company that has benefitted from a well designed and implemented IT and business strategic alignment is Wal-Mart retail store(s). As the customer buys any item from any Wal-Mart store across the United States of America, their IT system is able to inform the entire supply chain to replenish the shelves with the consumed item. Wal-Mart's order and inventory management system enables business efficiently, eliminating process waste and providing the right service and products at the right time, at the right place and to the right customer (Just-in-time). The result is revenue growth and growing market share.

2.2. What kind of advantage, and under what conditions?

The purpose of Business - IT Alignment is to optimize the value that IT contributes to the enterprise. As such, in order to successfully outline a strategic IT roadmap, it is important to start here. An organization has successfully aligned IT strategy to business strategy when there is:

* A shared understanding of how IT applications, technologies and services will contribute to business objectives - today and in the future.

* A shared focus on where to expend scarce resources, time and money; the trade-offs the enterprise is prepared to make.

* A credible working relationship between the IT organization and the rest of the business evidenced by reliable daily operations, responsive problem management and predictable, innovative solution delivery.

A company that does a first-rate job

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