Strategic alignment: leveraging information technology for transforming organizations

  • Authors:

  • J. C. Henderson;N. Venkatraman

  • Affiliations:

  • Systems Research Center, School of Management, Boston University, Boston, Massachusetts;Alfred P. Sloan School of Management, Massachusetts Institute of Technology, Cambridge, Massachusetts

  • Venue:
  • IBM Systems Journal
  • Year:
  • 1993

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Abstract

It is cleaaar that eventhough information technology (I/T) has evolved form its traditional orientation of administrative support toward a more strategic role within an organization, there is still a glaring lack of fundamental frameworks within which to understand the potential of I/T for tomorrow's organizations. In this paper, we develop a model for conceptualizing and directing the emerging area of strategic management of information technology. This model, termed the Strategic Allgnment Model, is defined in terms of four fundamental domains of strategic choice: business strategy, information technology strategy, organlzational infrastructure and processes, and information technology Infrastuvture and processes--each with its own underlying dimenslons. We illustrate the power of this model in terms of two fundamental characteristics fo strategic management: strategic fit (the interrelationships between external and internal components) and functional Integration (integration between business and functional domains). More specifically, we derive foru perspectives for gulding management practice in this Important area.