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Business Administration
BUS 237
Maryam Ficociello

Chapter 9 Notes Q1. What is the relationship between organizational strategy and information technology Planning? Competitive Strategy: The strategy an organization chooses as the way it will succeed in its industry. According to Michael Porter, there are 4 fundamental competitive strategies: cost leadership across an industry or within a particular industry segment, and product differentiation across an industry or within a particular industry segment Q2. What is Information Technology Architecture? IT architecture: The basic framework for all the computers, systems and information management that support organizational services - Just like a plan for a city, IT architecture is complex and complexity increases as more services are supported and different technology is used Enterprise architect: Manages the company’s complex information systems - An enterprise architect’s job is to create a blueprint that provides an overview that helps people in the organization better understand current investments in technology and plan for changes - An IT architecture is a long document with many sections that include some pretty complicated diagrams as well as management policies (such as privacy, sourcing and security) and discussion of future changes to the architecture Zachman framework: Conceived by John Zachman at IBM in the 1980s, divides systems into two dimensions: One is based on 6 reasons for communication (What—data, how—function, where— network, when—time, why—motivation), the other is based on stakeholder groups (planner, owner, designer, builder, implementer, and worker). The intersection of these two dimensions helps to provide a relatively holistic view of the enterprise. - Zachman framework is the most popular method for IT architecture Q3.What is Alignment, Why is it important and why Is it Difficult? Alignment: The ongoing continually evolving challenge of fitting IT architecture to business objectives - The alignment process takes advantage of IT capabilities as they develop while at the same time maintaining a balance between business objectives and IT architecture - Wal mart’s competitive advantage is based on being a low-price retailer which means maintaining lower costs than industry average - Wal-mart actually spends more than the industry average on information technology because the company has developed a sophisticated network of information technology Chapter 9 Notes applications that allows it to collect and share vast amount of enterprise information through the organization—this data access allows wal mart employees and suppliers to make more effective decisions and to operate more efficiently - Improvements are shown in perceived performance when technology was aligned with some strategy objectives - Communication between business and IT executives is the most important indicator of alignment Q4. What is Information Systems Governance? Governance: Using a committee to decide on expectations of performance to authorize appropriate resources and power to meet expectations and perhaps eventually to verify whether expectations have been met. - In publicly traded organizations, one purpose of governance is to ensure, on behalf of the firm’s shareholder, that an organization produces good results while working to avoid bad results - Goal of IS governance: improve benefits of an organizations IT investment over time Sarbanes-Oxley (SOX) Act: Law passed by the U.S congress in 2002 that governs the reporting requirements of publicly held companies. Among other things, it strengthened requirements for internal controls and management’s responsibility for accurate financial reporting. Budget Measures Act (Bill
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