Exploratory Study on Alignment Between IT and Business Strategies

Abstract

Interaction and linkages between business and information technology (IT) strategies remain a primary concern among executives. This study aims to gain an in depth understanding of how companies achieve alignment and the policy framework that underlies the efforts, particularly those that are associated with the most dominant factor that contributes to the establishment of strategic alignment, namely IT infrastructure flexibility. For that purpose, the study explored four companies engaged in the field of oil, electricity, and communication by adopting interpretive case study.Data were gathered using triangulation methods via field interviews, artifacts, document analysis, as well as direct observation. The textual data were elaborated by an intentional analysis in order to guide the study in exploring the phenomenon. The study identified elements that reflect IT infrastructure flexibilities namely connectivity, compatibility, modularity, IT staff knowledge and skills, and integration. Those elements cover both technical and behavioral dimensions of a company's components that need to be included in the consideration during the planning phase Abstrak: Keselarasan antara strategi bisnis dan strategi teknologi informasi (TI) tetap menjadi perhatian utama para eksekutif. Penelitian ini bertujuan untuk memperoleh pemahaman mendalam tentang bagaimana perusahaan mencapai keselarasan dan kerangka kebijakan yang mendasari upaya, terutama yang berkaitan dengan faktor yang paling dominan yang memberikan kontribusi terhadap terwujudnya keselarasan strategis, yaitu fleksibilitas infrastruktur TI. Untuk tujuan tersebut, penelitian ini meneliti empat perusahaan yang bergerak di bidang minyak, tenaga listrik, dan komunikasi dengan mengadopsi pendekatan studi-kasus interpretatif.Data dikumpulkan dengan menggunakan metode triangulasi melalui wawancara lapangan, artefak, dokumen analisis, serta pengamatan langsung. Data tekstual dijabarkan dengan mengadopsi pendekatan analisis intensional untuk memandu penelitian dalam mengeksplorasi fenomena keselarasan strategis dalam perusahaan. Studi ini mengidentifikasi unsur-unsur yang mencerminkan fleksibilitas infrastruktur TI yaitu Reksoatmojo et al. 140konektivitas, kompatibilitas, modularitas, pengetahuan dan keterampilan staf TI, dan integrasi. Unsurunsur tersebut memiliki dimensi baik teknis maupun sosial yang perlu dimasukkan dalam pertimbangan selama fase perencanaan strategi perusahaan.

A Strategic Organisational Perspective of Industry 4.0: A Conceptual Model

“…Strategic planning provides a sense of direction, outlines measurable goals in an organisation and guides day-to-day decisions [29]. Furthermore, strategic planning is concerned with the definition of changes that may be informed by changing market conditions, competitor activity and technology advancementtypically aspects encompassed by I4.0 [29,31]. For organisations to manage all the multiple internal and external factors described in the previous section strategically, strategic alignment must be achieved at both enterprise and departmental level [32], across four domains of strategic choices, namely strategy execution, technology potential, competitive potential and service level [31].…”

“…Furthermore, strategic planning is concerned with the definition of changes that may be informed by changing market conditions, competitor activity and technology advancementtypically aspects encompassed by I4.0 [29,31]. For organisations to manage all the multiple internal and external factors described in the previous section strategically, strategic alignment must be achieved at both enterprise and departmental level [32], across four domains of strategic choices, namely strategy execution, technology potential, competitive potential and service level [31]. Strategy execution refers to business strategy as a driver of both organisational design choices and information system infrastructure, while technology potential involves the articulation of an information technology strategy in support of the selected business strategy [31,32].…”

“…For organisations to manage all the multiple internal and external factors described in the previous section strategically, strategic alignment must be achieved at both enterprise and departmental level [32], across four domains of strategic choices, namely strategy execution, technology potential, competitive potential and service level [31]. Strategy execution refers to business strategy as a driver of both organisational design choices and information system infrastructure, while technology potential involves the articulation of an information technology strategy in support of the selected business strategy [31,32]. Competitive potential as alignment perspective is concerned with the exploitation of emerging information technology capabilities that affect key attributes of strategy, such as distinctive competencies, and it has an impact on business scope, such as new products and services, and business governance, which includes the development of new forms of relationships [31,32].…”

“…Strategy execution refers to business strategy as a driver of both organisational design choices and information system infrastructure, while technology potential involves the articulation of an information technology strategy in support of the selected business strategy [31,32]. Competitive potential as alignment perspective is concerned with the exploitation of emerging information technology capabilities that affect key attributes of strategy, such as distinctive competencies, and it has an impact on business scope, such as new products and services, and business governance, which includes the development of new forms of relationships [31,32]. The service level focuses on establishing a world-class technology organisation within an organisation and focuses on the effective use of IS resources, as well as responsiveness to the fast-changing demands of end-users and customers [31,32].…”

“…Competitive potential as alignment perspective is concerned with the exploitation of emerging information technology capabilities that affect key attributes of strategy, such as distinctive competencies, and it has an impact on business scope, such as new products and services, and business governance, which includes the development of new forms of relationships [31,32]. The service level focuses on establishing a world-class technology organisation within an organisation and focuses on the effective use of IS resources, as well as responsiveness to the fast-changing demands of end-users and customers [31,32]. Achieving and sustaining strategic alignment in organisations are influenced by a rapidly changing operating environment enabled by I4.0 aspects such as workforce skills and change capacity, business process automation, multiplicity of digital business models, and the variety and expectations of different customer segments [30,32].…”