Page 105 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

Strategic Alignment

Strategic alignment of Internet activity occurs when Internet strategy and business strategy are aligned.
The involvement of managers and directors from various departments of the company in Internet
activity and the involvement of Internet managers in management of organization are the critical factors
required to attain strategic alignment. Most of the research conducted on alignment has proved that
strategic planning processes are the key elements that influence alignment directly (Broadbent and
Weill of 1993).
Even the evaluation of Internet activity by various members of managing staff (service managers,
general managers) also needs to be considered to attain strategic alignment. The alignment concept
cannot be approached without taking into account technological influences as both cognitive and
institutional. A better alignment can be established within an organization by accepting new IT
products.
Organizational Alignment

Organizational alignment of Internet activity occurs when it is aligned with Internet strategy.
The organizational evolution holds organizational alignment of Internet activity. It necessitates an
adaptation of organizational structure within the organization to match Internet activity and vice-versa.
Most of the studies on IS related to alignment underlines the need for such a change to enhance
coherence of IT within the organization. Such a change helps to create new processes (Venkatraman,
1995) for Internet activity in the company.
Technological alignment of Internet activity occurs when Internet Strategy and Internet structure
(technological processes and infrastructure associated to Internet) are aligned.
Technological evolutions are essential to bring about technological alignment and assist Internet
activity. Most of the existing studies have demonstrated the need of technological advancement within
the organization to assist the alignment of IT activity.
The strategic alignment model comprises four domains (two internal and two external domains). The
external domains are also known as ‘Strategy Domains’ (both IT and Business Strategy Domain). The
internal domains are also known as ‘Infrastructure Domains’ (both IT and Business Infrastructure
Domains).
Figure 8.1 shows a strategic alignment model that illustrates how the decisions made in one domain
affect the other domains.

Figure 8.1: Strategic Alignment Model

Source: Henderson and Venkatraman. Strategic Alignment Model. Oregon State University.
The Strategy Domains include both Business and IT Strategy Domain.

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