What Is the Relationship between Organizational Strategy and Information Technology Planning?
Industry structure Competitive strategy Value chains Business Processes Information Systems
o Pg 268 full diagram
Challenges to using IS to support business objectives
o IT planning
o Understanding how technological and organizational systems should be acquired, maintained, renewed
Challenge lies with understanding both organizational strategy and technological architecture’s underlying IS
What is Information Technology Architecture?
IT Architecture –
o Basic framework for all computers, systems, information management that support organizational services
o Complexity increases with increases in services and technologies
o Companies/systems diverse few standards developed
o Documents complicated diagrams, management policies (security, sourcing, privacy), discussion of future changes to architecture
Enterprise architect –
o Builds IT architecture by creating a blueprint of an organization’s IS and the management of these systems
Should provide easily understood overview to allow understanding of current state/investments and allow for changes
o Considers: organizational objectives, business processes, databases, information flows, operating systems, applications and software,
Zachman Framework –
o Conceived by John Zachman at IBM, 1980
o Method for developing IT architects
o Divides systems into two dimensions
One based on six reasons for communication
What – data
How – function
Where – network
Who – people
When – time
Why – Motivation
Based on stakeholder groups
Useful for decision making for mergers, acquisitions, divestiture, rapid growth & first step to understanding how IT supports business objectives
What is alignment, why is it important, and why is it difficult?
Process of matching organizational objectives with IT architecture
Reich and Benbasat measured alignment as degree to which IT department’s missions, objectives, plans overlapped with overall business missions,
objectives, plans, social dimension
o Supportive knowledge sharing environment & common business practices gave way to efficient alignment
Takes advantage of IT capabilities as they develop at same time maintain a balance between business objectives and IT architecture
Higher perceived performance
What is Information Systems Governance?
Publicly traded organizations – ensure organization produces good results while working to avoid bad habits
Business organizations – designed to work toward the development of consistent, cohesive management policies and verifiable internal processes.