SAM Model and IT Governance on one Page

1. Strategic Alignment Model
Presented By
Sumera Aijaz
PRN 14030141096

2. Strategic Alignment Model
Venkatraman|Henderson|Oldach
I.T Strategy
Infrastructure
& Process
Strategic
Alignment

3. The SAM Model
Strategic Fit
Functional Integration

4. Perspective 1- – Strategy Execution Business
Strategy drives IT Expense
Business
Strategy
(Anchor)
Business
Infrastructure
(Pivot)
IT
Infrastructure
(Area of
Impact)

5. Perspective 2- Technology Potential- Business
Strategy drives IT Development
Business
Strategy
(Anchor)
IT Strategy
(Pivot)
IT
Infrastructure
(Area of
Impact)

6. Toyota –
It sees a business strategy rather than an I.T. strategy.
Continuous improvement - Any improvement must be made in accordance with the scientific method” -
Dealer Daily inventory a car swap service that allowing dealerships to swap cars through an internet
portal so customer can avoid any unnecessary wait for their vehicle.
Producing products of the highest standard and naturally without defects. Light curtain, a beam of light
that sends a signal to a computer who can flag up defects and halts the workflow while the employee
retrieves the missing part.
Meeting suppliers on a monthly basis - the benefit of this is a clear and common understanding.A
sophisticated Supply Cain Management approach where the idea that is for minimal warehousing of
stock while maintaining enough stock to produce
Activplant Performance Management System - It is responsible for producing a car every 55 seconds -
proof of an I.T. system perfectly aligned with the goals of the system. Software tools help manage this p
balancing act of deadlines, dwindling stock and high standards

7. Perspective 3- Competitive Potential- IT Strategy
influences and enables Business Strategies
IT Strategy
(Anchor)
Business
Strategy
(Pivot)
Business
Infrastructure
(Area of
Impact)
This perspective focuses on how emerging new information technologies can
influence and enable new business strategies. These new business strategies bring a
competitive advantage to the business in the marketplace

8. FedEx – Attempted to create new Standards of OVERNIGHT Delivery
Through COSMOS System (Customer Operations Service Master On-
line System )
A computerized package tracking system that monitors every phase of
the delivery cycle at Federal Express. FedEx employees constantly input
information into COSMOS by several means.
Dispatchers relay pick-up and delivery information to the courier via
DADS, small digitally assisted dispatch computer systems found in all
courier vans.
Hand-held computers, called Super Trackers, are used to scan the
progress of the package an average of 5 times from pick-up to delivery.
Thus, a customer can find out at any time exactly where their package is
and when they can expect delivery, whether they call Customer Service
or track the package themselves on the FedEx Web site or using FedEx
Ship software.

9. Perspective 4- Service Level - IT improves
Business processes
IT Strategy
(Anchor)
IT
Infrastructure
(Pivot)
Business
Infrastructure
(Area of
Impact)
The focus of this perspective is how information technology can improve the how the products and
services are delivered.
This perspective also assesses how information technology can improve the businesses own processes.

10. Conclusion :
Pros :
Maximizes return on IT Investment
Competitive advantage
Increase Profitability and efficiency
Cons :
Too rigid to be flexible
Too theoretical to materialize
Less explanatory Literature available