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
- 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
- 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
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
- 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