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IT Strategy and Domains for Alignment

June 4, 2008
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An important premise of the strategic alignment model is that effective governance of IT requires a balance among the choices made in all the four domains. The Figure below describe two cross-domain relationships in which business strategy plays the role of driver, and two relationships where IT strategy is the enabler. The “strategic execution alignment” perspective is probably the most widely understood as it is the classic, hierarchical view of strategic management. The perspective starts from the premise that business strategy is articulated and that this strategy is the driver for the choices in organizational design and the design in IT infrastructure. The “technology transformation alignment” perspective also starts from an existing business strategy, but focuses on the implementation of this strategy through appropriate IT strategy and the articulation of the required IT infrastructure and processes. The “competitive potential alignment” perspective allows the adaptation of business strategy through emerging IT capabilities. Starting from the IT strategy, the best set of strategic options for business strategy and a corresponding set of decisions regarding organizational infrastructure and processes are determined. The “service level alignment” perspective focuses on how to build a world-class IT service organization. This requires and understanding of the external dimensions of IT strategy with the corresponding internal design of the IT infrastructure and processes.

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