In most organisations IT outgo is considered as one of the larger if non the largest subscriber to capital investing and outgo. Technology has a important consequence on the concern landscape of most organisations and the market topographic point they operate in. The end of IT as such should be directed toward the alliance of IT scheme with an organization’s overall concern scheme ( Mulcay. 2001 ) . It is argued though that the inability to successfully derive value from IT investing is. for the most portion due to a deficiency of alliance between IT and concern schemes.
Johnson and Scholes cited by Riley ( 2012 ) define scheme as follows “Strategy is the way and range of an organisation over the long-run: which achieves advantage for the organisation through its constellation of resources within a ambitious environment. to run into the demands of markets and to carry through stakeholder expectations” . In take outing the definition. merely the concern scheme that the concern has decided to follow demands accurate constellation of resource – human resource. engineering resource. fiscal resource etc. . so as to derive competitory advantage. meet aims and stakeholder outlook.
Henderson & A ; Venkatraman ( 1999 ) argue that there is no IT application or system. regardless of how edged border or sophisticated it possibly. that will construct and prolong a competitory advantage for an organisation for a sustained period of clip. Organizations. in order to prolong competitory advantage should continuously endeavour to work it’s IT functionality and resource to keep an advantage. In my sentiment this is achieved by out of the box. evolutionary thought by both concern and IT leaders. Furthermore. both concern and IT leaders need to understand to the full the function that IT can back up and re-shape concern scheme determinations and better IT effectivity and finally better concern public presentation.
SHOULD A COMPANY’S IT STRATEGY FOLLOW ITS BUSINESS STRATEGY OR SHOULD IT LEAD ITS BUSINESS STRATEGY? WHY
In my sentiment IT is vary seldom the nucleus concern unless of class we mention Microsoft or Google and the similar where engineering is the primary focal point country but it must noted that the existent concern procedure for each is different and rational belongings is what is regarded most valuable. Hence. I agree with ( Abate 2009. Henderson & A ; Venkatraman 1999. Skriletz 2013 ) and many other research workers and observers. that IT’s function should be regarded as the enabler or driver of the concern scheme. IT’s scheme. investing ; architecture even undertakings all need be dictated by overall concern scheme. but should be portion of procedure that helps the formation of the overall scheme.
IT leaders need to possess the cognition of new enabling engineerings and how these engineerings can be integrated into the concern. Very frequently the concern scheme is formed and developed in isolation and IT is seen as a support map merely. instead than as map that can lend to organizing the scheme itself. IT leaders need to be portion of the procedure that delivers the way the concern chooses to follow. Luftman & A ; Brier ( 1999 ) echo this sentiment in that merely as HR and selling are of import parts of scheme so to should IT. Venkatraman and Henderson ( 2000 ) assert that concern strategians can non be seen to take the prima function whilst the IT strategian is seen as a support function. It is imperative both take the lead in planing the concern platform. “Business and IT strategists working together to determine new concern ; IT is non low-level to concern scheme but an extricate portion of it” .
Factor TO CONSIDER
Technology is seen as one of cardinal elements that drive alteration and transmutation. Intelligent usage of engineering can present a competitory advantage. streamline procedures create cost efficiencies and optimisation for most organisations and as organisations strive for these competitory advantages and efficiencies it would truly non be prudent to except the engineering people from the procedure of scheme development as those organisations that do include them. will surely claim the competitory border and advantage.
“Regardless of what industry you’re in. it’s difficult to believe about a concern that couldn’t exploit IT for competitory advantage if they chose to. ” says Barbara Gomolski. an analyst at Gartner cited in an article by Moore ( 2011 ) . The industries that have seen growing by alining IT and concern scheme and have used it as a driver and an enabler include the air hose industry that has leveraged IT and now allows clients to book straight with bearers instead than affecting 3rd party agents. The banking industry has truly embraced engineering with the likes of online banking and minutess. which show true alliance and engagement of IT in concern scheme and end scene. Technology drives their growing.
The sentiment shared and one that I agree with is that by including IT in the preparation of concern scheme will surely help the organisation in accomplishing its ends. The development of engineering as a agency is cardinal and if you don’t needfully experience that. so I guarantee IT is treated as being outside of the nucleus concern scheme and as a consequence the organisation is non deducing value from one of it’s most if non the most valuable resources.
Venkatraman N & A ; Henderson JC. 2000: Business platforms for the twenty-first Century. in Mastering Information Management. edited by DA Marchand. TH Davenport & A ; T Dickson. Great Britain: Prentice Hall: 283-289
Mulcay K. 2001: The IT Dilemma. World Trade. 14 ( 4 ) : 48-48.
Henderson JC & A ; Venkatraman N. 1999: Strategic Alliance: Leveraging information engineering for transforming administrations. IBM Systems Journal. 38 ( 2 & A ; 3 ) : 472-484.
Luftman J & A ; Brier T. 1999: Achieving and Prolonging Business-IT alliance. California Management Review. 42 ( 1 ) : 109-122.
Abate R. ( 2008 ) IT should be an enabler to concern [ Available online at ] hypertext transfer protocol: //www. information-managem vitamin E National Trust. com/blogs/IT_business-10015571-1. hypertext markup language ( Accessed 18 June 2014 )
Skriletz R ( 2013 ) How to do IT a concern enabler [ Available online at ] hypertext transfer protocol: //www. b-eye-network. com/view/16788 ( Accessed 18 June 2014 )
Moore J ( 2011 ) Make It portion of your Business Strategy [ Available online at ] hypertext transfer protocol: //www. cnbc. com/id/44818677 ( Accessed 18 June 2014 )
Riley J. ( 2012 ) What is scheme [ Available online at ] hypertext transfer protocol: //tutor2u. net/business/strategy/what_is_strategy. htm ( Accessed 18 June 2014 )