Page 110 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

Unit 8: Business Process Reengineering – Model and Methodology

8.1.2 Types of Alignment

The strategic alignment model intends to align IT with business by involving four components. Hence,
there are four possible alignment perspectives. They are:
1. Business Strategy as the Driver: Technology Transformation
2. Business Strategy as the Driver: Strategy Execution
3. IT strategy as the Enabler or Driver: Competitive Potential

4. IT Strategy as the Enabler or Driver: Service Level
8.1.3 Business Strategy as the Driver
Business Strategy – IT Strategy – IT Infrastructure
As per the perspective shown in Figure 8.4, the business strategy drives the IT strategy that dictates the
IT infrastructure and processes required. The present organizational scenario does not stand as a barrier
to this outlook. Here, the emphasis lies in recognizing the best possible IT in market and its equivalent
internal IT architecture.

Figure 8.4: Business Strategy as the Driver: Technology
Transformation

Source: Bajaj. K., and Nag. D. (1999). E-Commerce: The Cutting Edge of Business. New Delhi: Tata McGraw-Hill
Publishing Company Limited. Page 236.
The executive managements’ role is to offer the technological vision that matches the selected business
strategy. Here, the performance criteria are based on the organization’s technological leadership in the
IT marketplace.
Business Strategy as the Driver: Strategy Execution
Business Strategy – Business Infrastructure – IT Infrastructure
As per the perspective shown in figure 8.5, the business strategy drives the business infrastructure that
in turn drives the IT infrastructure. This is the most commonly seen hierarchical strategic management
view. The role of management becomes crucial in making this perspective succeed, as the top
management and IT manager act as the strategy formulator and strategy implementers. This is referred
to as the traditional BPR model. The performance criteria to assess IT or IS function are based on the
financial parameters.

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