technology sphere: alignment with business strategy
DESCRIPTION
It is vital for the information systems strategy to specifically adapt to the nature of the business it is intended to support. There are no universal formulae for success, as each organisation has its own unique aims and resources. For more information: http://www.itmplatform.com/en/blog/2012/10/15/alignment-with-business-strategyTRANSCRIPT
Technology sphere
alignment with business
strategy
Daniel Piret
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Technology sphere alignment with business strategy
• It is vital for the information systems strategy to specifically adapt to the
nature of the business it is intended to support. There are no universal formulae
for success, as each organisation has its own unique aims and resources.
• As a result, the first step will be to identify the key aspects of the business, the
set of operations, decision-making processes and planning activities which are
of vital importance. These and only these should attract the greatest efforts in IT
applications, both from the perspective of tools and management
resources, investment and even innovation, as they lie at the core of the company's
competitive edge.
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Technology sphere alignment with business strategy
• This initial stage in defining the Information Systems strategy is particularly
sensitive to honesty; not all operations and departments are vital. They are
undoubtedly all necessary, but they do not all represent the key to success, and it will
therefore inevitably often be the case that those business processes which require
the greatest reinforcement are precisely those which correspond to the core
business. Or even the business plan for a given period, since the key elements will
vary between periods of growth and consolidation.
• An appropriate information systems strategy must allow for intelligent
distribution of the resources to be assigned to each of these activities in the value
chain.
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Technology sphere alignment with business strategy
• There are differing intensities in the use of economic resources dedicated to IT
depending on the nature of the company's dealings. In Spain, the average
information systems budget is around 2.1% of overall turnover, although banks and
financial institutions may spend as much as 8.4%. And so there will be companies
whose operations require support from expensive and powerful IT, while others
should be dedicating greater resources to other functions, such as research or the
recruitment of more effective human capital. An information systems strategy must
apply IT with an emphasis on those aspects where the company excels, and
where its deployment constitutes a corporate tool which adds value.
• In short, it is vital to perform an accurate situational analysis in order to answer the
relevant questions. How significant is the use of information systems in running the
business? Which activities require a greater investment of resources in order to stand
out from the competition? Which IT characteristics should be better supporting those
USPs?
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