; Module 2 Managing Technology
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Module 2 Managing Technology


  • pg 1
									Module 2 Managing Technology
      Topic 3: Align Information
   Technology and Business Strategy
     What is IT strategy?
The mission critical, long-term IT
choices made by a firm.
Commitment to build IT capability
Why acquiring IT capability?
To create new businesses, to expand an
existing market, and to discern new
strategic directions
To survive
To improve performance
To distinguish an organization in the
Successful IT Implementation
Commitment to IT strategy
Alignment between IT and business
Role of Chief Information officer
Top management support
     Types of IT Strategy
IT leader strategy
IT follower strategy
Niche strategy

When to use what IT strategy?
Strategic Alignment Process
IT strategy
Business strategy
Organization infrastructure and process
IS infrastructure and process
       The Concept of „Fit‟
Three perspectives (Alder 1989)
 Business and technology strategy
 Technology poster and functional
 decision making practice
 Synergy between decision making
   Technology Strategy Field
Consists of
  Particular dimensions of technology policy
  that is related to business strategy
  Integrative models that prescribe fit between
  technology policy and business strategy
  Empirical links between technology strategy
  and business strategy
 Business Competitiveness &
    Technology Strategy
Manager should (Clark, 1989)
 Understand their technological base
 Take an international perspective
 Discipline their business function
 around the production function
 Integrate all business functions
 Focus on time as the critical factor
    Strategic Technology
    Management Process
3 Key areas (Betz 1993)
Identification and development of a
firm‟s technological capabilities
Products/processes that provide
competitive advantages
Integration of areas one and two
  Technology and Business
Technology is critical to business outcomes
Characteristics of best practices include
  Championship of technology issues
  Adequate levels of technological competence
  Selection of the structural for of the unit
  Coupling between a technology function and
  Extent and timing of technology control
  Technology transfer mechanisms
   Technology Strategy &
Technology strategy plays an important
role in enabling firms to achieve their
leadership position
Superior performance characteristic
(textbook, p. 30)
Technology is a means, not an end in
Capable people are valuable resources.
Technology needs to be planned and
exploited within and through the “big
picture” context.
Strategic Alignment Framework
Luftman, J.N., Lewis, P.R., and Oldach, S.H.
"Transforming the Enterprise: The Alignment
of Business and Information Technology
Strategies." IBM Systems Journal ,Vol. 32,
No. 1, 1993, p. 198- 221.
Luftman, J. and Brier, T. "Achieving and
Systaining Business-IT Alignment." California
Management Review, 42(1), Fall 1999, p 109-

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