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Week 1 ISP Why is it important for business strategy to drive organizational strategy and IS strategy? What might happen if the business strategy was not the driver?

Hello all,

Corporate planning synthesizes all the measures you plan to take to attain your long-term corporate objectives. Your business strategy comes from the mission of your firm - the reason you are in business. Every move you do should strive to achieve this goal, driving all your strategic choices.

Importance of business strategy

In order to best determine the future direction of your business, it helps to understand where you are positioned in the market. Strengths, weaknesses, opportunities, and threats are key factors to consider when devising business strategy.

The business strategy drives the overall operation of the organization, any changes in organizational and IS strategy should look back on the business strategy, and the changes should not avoid the process of business strategy. The strategy triangle helps to balance business, organizational, and information strategy (Pearlson et al., 2019).

If the business strategy does not drive the business, the following might occur.

The triangle becomes unbalanced if the business strategy does not drive the other strategies. This would break the balance between the three strategies and could lead to a company's downfall (Wunderlich & Beck, 2018). The business pattern has overall changed, thus also changing the operation of the organization.

Thank you

Manchoopaporn Boonchoo

References

Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2019). Managing and using information systems: A

strategic approach. John Wiley & Sons.

Wunderlich, N., & Beck, R. (2018, January). You'll be surprised-Digital business strategy as driver of

organizational innovativeness. In Proceedings of the 51st Hawaii International Conference on System Sciences. https://doi.org/10.24251/HICSS.2018.508

Kald, M., Nilsson, F., & Rapp, B. (2000). On Strategy and Management Control: The Importance of

Classifying the Strategy of the Business. British Journal of Management11(3), 197–212. https://doi.org/10.1111/1467-8551.00161

Hello Deshmukh,

Thank you for your post. It throws more light on how business strategy to drive organizational strategy and IS strategy. There are many benefits to aligning business strategy and IT strategy with its business goals, but they can largely be categorized into three areas. In order to remain competitive, to ensure that all stakeholders are working towards the same goals, and to maximize the value from limited resources, it's worthwhile for business and IT strategies to be aligned. Technology for the sake of technology is of no benefit to anyone, however that doesn’t mean IT should limit its role to processing work orders. If IT is providing technology leadership and aligning with the goals of the organization, that is where the true power of IT will be found in the business. If the IT goals are aligned with the business goals, it allows the business to be proactive and intentional with the IT spend and therefore reduce unnecessary costs. Thank you again for the immense light you have thrown on this topic of discussion. 

Manchoopaporn Boonchoo

Hello Vasireddy,

Thank you for your post. It’s very informative. To manage business strategy to drive organization strategy and IT strategy is very important and useful. Nowadays is the technology era, so most of everything is driving by technology. IT strategy with business goals helps guide and inform decision making and ensures that everyone is working towards the same goals and are on the same page. IT systems that are selected and implemented in line with an organization’s strategic plan are more likely to be valuable, well used tools. A team is more likely to be on board with implementation and training on the new technology if they understand how the IT systems fit in with the business goals. Focusing IT efforts towards meeting data-driven business objectives will ensure that the whole business believes in the value of IT in achieving the underlying strategic course of the organization. These days, there are more and more tools available to help harness the power of data from multiple sources into making informed decisions about the direction of the business. Thank you again for the immense light you have thrown on this topic of discussion.

Manchoopaporn Boonchooo