Week 4 – Strategy Alignment Model

Source / Reference:
1) “Strategic Alignment: Leverage Information Technology for transforming organization” by J C Henderson and N Venkartraman 1993
http://search.proquest.com/docview/26252741/134A6C8B53F19A4F606/1?accountid=16210
2) “Strategic Alignment : Analysis of Perspectives” by Preston Coleman and Raymond Papp 2006
http://sais.aisnet.org/2006/Coleman-SAIS2006-paper.pdf
3) “Business-IT Strategic Alignment Concept in Theory and Practice” ny Goteborg, Sweden 2008
http://gupea.ub.gu.se/bitstream/2077/10496/1/gupea_2077_10496_1.pdf


Subject:
In Lect 4 - Which alignment strategy in SAM model is the best? and why?


Response:

In SAM model, both competitive potential and service level use IT strategy as the enabler (anchor domain). When the IT strategy provides the change forces in the SAM model, it serves as the IT enabler applied to the domain to enable new or enhance business strategies with organizational implications. However, I would like to say the Service level is the best in SAM model.

Service level perspective focus on how information technology can improve the how the products and services are delivered. It also assesses how information technology can improve the businesses own processes. This requires the executive and IT management to understand the external dimensions of the IT strategy with corresponding to internal design of the IS/IT infrastructure process which is considered as guiding to stimulate the customer demand. The strategic fit for information technology in this perspective creates the capacity to meet to needs of IS/IT customers. Below is figure describing service level perspective :

Nowadays, IT is used widely in our daily life. Take taxi with Octopus service as an example. In Hong Kong, there are about 200 taxis that provide Octopus service. Traditionally, customers need to pay in cash after the journey. Customers usually need to pay tips if there are cents. Also, the process of refunding is time consuming; drivers always need to take time to search for sufficient amount of money to refund. However, since the Octopus service is introduced, drivers do not need to take extra time for searching coins; customers do not need to pay extra amount for the journey. Both suppliers and consumers can benefit from that introduction of IT.

To conclusion, I think service level perspective is the best in SAM model. Its performance is assessed by the level of customer satisfaction; it the the fairest criteria to determine a organization's performance. As customer is the final user of the products or service of an organization.