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2.  Role of IT has shifted beyond its traditional back office support
model to provide an integral part of an organisational strategy.
 Organisations fail to realise the value of IT investments due to the
lack of alignment between the business and IT strategies of an
organisation.
 Strategic Alignment ensures that the operating elements of the
company all work in harmony.
 Proper alignment will allow an organisation to use information
technology efficiently to achieve its business objectives.
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3.  The Strategic Alignment Model (SAM) is based on the concept of
strategic fit between external and internal views and the functional
integration between organisational and technology views.
 One of the most popular models used in analysing and
understanding strategic alignment.
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4.  There are four domains involved in the strategic
alignment model. There are two internal and two
external domains.
 External: Business Strategy and IT Strategy
 Internal: Business Infrastructure and IT
Infrastructure
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5.  Business Strategy
 IT Strategy
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6.  Business Infrastructure
 IT Infrastructure
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7.  These linkages are necessary because the all the quadrants
and components have to work as a whole unit.
 Strategic fit refers to the use of strategy to determine the
infrastructure of the business.
 Functional integration is most directly related to information
technology and the alignment of the business.
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8. 1) Strategy Execution
2) Technology Transformation
3) Competitive Potential
4) Service Level
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9.  Anchored on the notion that a business strategy has been articulated
and is the driver of both organisational design choices and the
design of IS infrastructure.
 Priority is to improve business processes which places focus on
changing business infrastructure.
 IT focus is on application development, driven by need to support
business infrastructure.
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11.  The Wolf Organisation is a traditional manufacturing company
located in Pennsylvania.
 As competitors threatened, Wolf built an enterprise resource
planning platform for growth, efficiency and productivity.
 In ten years, Wolf doubled revenues and positioned itself for
expansion.
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12.  Business Strategy
 Dedicated to expanding their markets.
 Achieving Competitive Advantage.
 Providing exceptional customer service to their customers.
 Business Infrastructure
 Management team is an experienced group of professionals
dedicated to building better business through service to company
and community.
 Old billing system not meeting customer requirements or keeping up
with competitors.
 To enable business improvement initiatives Wolf implemented SAP
within the company.
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13.  IT Infrastructure
 Relies on technological innovation. It became one of the first midsize
companies to partner with SAP.
 Recent implementation of SAP Biller Direct has helped to strengthen
existing customer relationships and lay the groundwork for building
new relationships in a tighter market.
 Listening to its customers, Wolf integrated Web-based billing,
empowering customers who want a digital relationship and
stimulating real-time collaboration.
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14.  Reduced customer and Wolf financial fees.
 Built entry barriers to competitors.
 Enhanced customer loyalty and collaboration.
 Alignment enabled better relationships with customers by meeting
customer demand and improving billing detail.
 Improved communications with regional partners and employees.
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15.  This perspective is anchored on the notion that a business strategy
through appropriate IT strategy and the articulation of the required
IS infrastructure and processes.
 Role of top management is that of the Technology Visionary.
 Role of IS manager is that of the Technology Architect.

16.  Implement Chosen Business Strategy
 Identify the value of Information Technology.
 Identify the best possible IT competencies.
 identify the corresponding internal IS architecture.
 The technology transformation model is the ability to transform
technology into business success.

18.  Business Strategy
 Deliver Creative Technology Solution
 Deliver Value
 Competitive Advantage
 IT Strategy
 Commitment to a Technology Alliance
 Expanding and Strengthening their Strategic Relationships

19.  IS Infastructure
 Samsung combined its hard disk drive operations into Seagate.
 A NAND flash memory supply agreement under which Samsung
will provide Seagate with its market-leading semiconductor
product.
 A disk supply agreement under which Seagate will supply disk
drives to Samsung.

20.  Conclusions
 This Alignment enabled both Companies to better align their
current and future product.
 Accelerate time-to-market for new products.
 Positioned the companies to better address rapidly evolving
opportunities in the markets.
 This alignment significantly expanded Seagate’s customer access
in China and Southeast Asia.

21.  Leveraging of
existing/emerging IT
capabilities.
 Anchor- IT strategy
 Pivot- Business
Strategy
 Impacted- Business
Infrastructure
 Needs a dynamic
business model

22.  Flextronics produce components,
circutboards based in Hollyhill, Cork.
 IT strategy initiative to improve data use.
 Business strategy- New Quality Management
approach.
 Infrastructure? New flow of information,
improved CRM
 More detailed overview of production.

23.  Employees: 38,100
 Revenue: US$15.3 billion
 Plants on 5 continents
 IT Driven- Opportunity to integrate software,
improve quality management and quality
management.
 Business Strategy change in expectation and
standards.
 New performance measurement tools and
share knowledge worldwide

24. Business Strategy IT Strategy
Scope Scope
Competencies Competencies
Governance Governance
Business Infrastructure IT Infrastructure
Structure Infrastructure
Processes Processes
Skills Skills

25. • Service level alignment is anchored on the notion
that IT strategy is the driver of the perspective and
it focuses on how to build world class IT/IS
organisation within a business.
• The role of top management is that of prioritizer.
• The role of IS management is that of executive
leadership.
• Performance criteria is that of Customer
satisfaction.

26.  IT Strategy
• Maintain business strategy of providing the best service for
the lowest price
• High levels of IT utilization.
• High level of IT innovation.
• Create customer loyalty through interactive customer
technology and experience.

27.  IS Infrastructure.
• Customer ability to track package/product via GPS.
• Error handling programmes.
• High use of logistics benefiting business process and
customer trust and satisfaction.
• Online return policy with customer, UPS and the vendor.
• Shipment updates via mobile apps.
• Reroute abilities through IT capabilities.
• Data delivery system of companies can be attached to the UPS
server.

28.  Business Infrastructure
• Enabling employees the skill set to operate all
technology and new technology innovations.
• Integrating the advanced IT into the basic business
process.
• The provision of high levels of information to
customers with the same low prices.

29.  Conclusion
◦ UPS is a world leader in the postal service business.
◦ It was the first postage service to provide the customer
with the technology experience.
◦ UPS’s IS infrastructure has led them to gain competitive
advantage over their rivals on the basis of the best
service for the best value.
◦ UPS are very progressive expansion wise and our
becoming leaders in the business in the European and
Asian market.

30.  Example
of how IT can bring
harmony between strategies.
 Exploitation through IT.