maturity of an organization’s strategic alignment

maturity of an organization’s strategic alignment

1. organisatRivalryastructurecribe the concept of strategic alignment. Explain how the maturity of an organization’s strategic alignment can impact its ability to execute an IT strategy. (12 Marks)

The strategic alignment refers to a process through which stakeholders whether they are internal and external; organisation’s business development, and product creativity is aligned to achieve the vision and successful outcomes. Information technology companies implement strategic alignment so that they could receive successful outcomes for the business processes. In other words, strategic alignment in IT is the integration of computer technologies into the company’s business process for performance improvements (Babar, Wong, & Gill, 2011, pp. 2).

Additionally, Strategic alignment is helpful to achieve high performance by assessment of people, process and goals. In context with IT strategic alignment, authors Coltman et al. (2015, p. 93) refers it a degree to which the information technology purpose, goals, and procedures are approved by the business mission, objectives, and plans. Therefore strategic alignment is used in Information Technology to make alignment for their business processes.

The maturity of strategic alignment is essential that should be considered by the organisation. Further, maturity gathers alignment gaps within an organisation by taking strategic choice and alignment practice into consideration (Luftman, 2015, p. 12). The IT strategies which are enabled into the company are not always successful as there are multiple gaps with the planning and implementation processes. Therefore, maturity addresses loopholes and define new ways to redefine strategic alignment.

2. Explain “IT Productivity Paradox“. Does it exist?  (10 Marks)

Author Brynjolfsson (1993) in his article first coined the term productivity paradox in the context of information technology. Productivity paradox refers to a reduction in productivity growth with an increase in IT over some time interval. Usually, this term was found widespread in 1970 and 1980 within the United States, respectively. The productivity paradox does exist in the information technology domain. There are several reasons responsible for making productivity paradox for  IT. Mismanagement is considered the first reason for bringing slowdown. The information and data provided by IT companies lack in management (Cummings, 2019). The clients are quite disappointed in the shortage of management from professionals. This slows down the overall productivity of an organisation. Secondly, mismeasurement is another reason through which productivity paradox could occur. The IT implementation in healthcare cannot be measured for what is produced output to the necessary resource input (Jones et al., 2012, p. 2244). In other words, quantities cannot be measured for a company, and hence productivity paradox occurs very frequently. Additionally, the reason such as replacement of AI from real employees can be viewed as another experience. For example, workers bring more productivity as compared to robots and machines which do not guarantee positive results. Hence, productivity paradox in the IT industry does exist because of mismeasurement, mismanagement and recession in hiring as well as the recruitment process.

3. Describe the role of a modern CIO. How has it changed over time? What role can a CIO play in attaining strategic alignment?  (15 Marks)

Before discussing the part of the modern CIO, it is mandatory to discuss what led to the change. In the years of the 1950s and 1960s, there was no CIO, however, IS manager who looked after data processing service functions only. It was not given more importance due to the lack of technologies (Hodgson & Lane, 2010, p. 258). However, as new emerging technologies was obtained, the importance of the chief information officer was acknowledged around the years 2000 to the present.

Role of Modern CIO

❏      Business Strategy Expert: The first and foremost role of modern CIO is understanding business strategies. Once the plans are followed, technological movements can be implemented.

❏      Change Management Agent: A change agent is a person who helps in the process of transformation from either inside or outside of the organisations. Furthermore, CIO should work as a change agent so that IT implementation could be done with transformational activities.

❏      ICT strategy expert: The information and communication strategies are often implemented to make the organisation effective. However, CIO should gain experience in using ICT strategies.

❏      Functional Leader: The leadership activities must be appropriate and has everyone on a single platform. The strategic partnerships and cross-team projects collaboration with CEO and other partners is an effective way of leading ICT implementation (Byrne, 2018). Further leadership should be functioning and must convince other people involved in the transformation.

❏      Technological Advocate: It is important to analyse and judge the technologies before implementation. Hence, CIO should gather whether techniques are beneficial or not.

❏      Speed and Agility: The speed and agility for the implementation of new technologies should be present. Further, business needs must be fulfilled with accuracy and swiftness (Krigsman, 2018).

Role of CIO in Strategic Alignment

In context with Strategic Alignment, CIO should implement four-component strategies in their organisations.

1.      Business Strategies: Business strategies must be implemented after gaining experience and having communication. Communication with the CEO is quite effective for introducing new strategies.

2.      Organisational Infrastructure and processes: The corporate Infrastructure should also be appropriately judged before making new decisions as to the CIO of the company.

3.      IT Strategy: The decisions related to IT should also be taken into consideration before making any conclusions.

4.      Information systems and infrastructure processes: Lastly, IS should be proper and should not have any issues like network, connections and other kinds of problems within means.

4. Discuss some of the significant ways IT has become essential to organisations? (10 Marks)

There are several ways through which IT can become relevant to organisations that are discussed below.

❏      Reduction of complex problems: The information technology systems reduce complex problems in several departments of companies. For example, the management of business operations such as HR, finance, and sales can be maintained through software. Consider ERP software that collects and manage data for the above-mentioned departments.

❏      Transaction process management: The transaction processes for the business organisation with other vendors is simplified. The information technology offers transaction process system which processes transactions in the organisations (Ramey, 2014).

❏      Decision Making Power: The BI analytics tools are useful and work as a decision making process. Further, it uses an AI system to adjust the online analytical process for making better decisions (Ramey, 2014). The company’s productivity and success are seventy per cent based on decision making of the management.

❏      Data management and storage: The organisations go through different deals every day. However, paperwork is another complex issue that makes operations difficult. Hence, data management and information storage become comfortable with IT. The ICT systems store information related to suppliers, vendors and customers. DBMS system store data in a single table and can be used for various operations.

❏      Communication Platforms: Communication with employees and customers can be done successfully. The ICT system offers communication platforms to interact with each other. There are several services such as email, and electronic mail, and video conferencing tools are considered the best options for having the discussion (Ramey, 2014).

5. Draw a basic matrix to demonstrate a SWOT analysis with Porters Competitive Force Model and Ansoff’s Analysis. Briefly indicate what each cell of the matrix would contain. (15 Marks)

Porter’s five force Model

The model was established by Michael Porter to gather and analyse the surroundings in which an organisation operates for a competitive advantage over other enterprises. According to the matrix below, there are five forces which must be taken into consideration for competitive advantage. For example, the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry (Morrison, 2012).

❏      The threat of New Entrant: The threat of new entrant define various threats that could affect the company’s operations and strategies. For instance, new government policies and rules are supposed threats as they can harm companies by shutting their current processes.

❏      Supplier Power: The suppliers are useful for changing the overall competition. For example, suppliers can be more or less due to some reason. Thus, organisations could go into loss or benefit due to such forces.

❏      Buyer Power: The buyers are also essential because they fluctuate companies. The customers can choose other competitors. For example, people can buy cosmetics product from fellow competitors. These could affect the organisation’s rapport as well.

❏      The threat of Substitute: The same product is available from other companies — the substitute for a similar outcome in market increase competition.

❏      Competitive Rivalry: ultimately, Rivalry with others is another aspect which should be considered. For example, several competitors should be acknowledged and develop innovative strategies for customer satisfaction.

Source (Morrison, 2012).

SWOT Analysis

The SWOT analysis is done to identify the company’s strength, weakness, opportunities and threat. It is important to gather what strength will be helpful to the future success of organisations. Next, the weakness that could harm an organisation can be determined. Further, future opportunities and threats could be understood through the other two matrix sections.

Helpful                                                                   Harmful

Ansoff’s Analysis

To determine a market plan for revenue generation of an organisation. Four elements are present in the matrix; first is a market penetration strategy that refers to a technique for selling old products. Next, market development reflects how companies can enter into new marketing opportunities. The development of existing products can be achieved through product development. Lastly, diversification is another strategy through which marketing is done through different countries.

Source (Hanlon, 2019)

6. Describe some of the IT plans formulated at the tactical level of the organisation. (15 Marks)

Tactical planning is accomplished after making strategic goals for implementation. In the case of IT, planning is done to complete the goals of IT. Furthermore, organisations make some IT plan so that goals and objectives can be fulfilled. For example, consider three examples of IT plan. The project timeline for an information system is the first example. The timeline is defined for each process in IT implementation.  This plan also identifies key responsibilities with a budget, scope and other details. Secondly, resources for IT infrastructure is another key part of IT planning. What type of and how many resources will be implemented can be determined through it? These questions are addressed in such IT plans produced by the organisations. The action plan for IT processes is also made available to others. Hence, the IT plan incorporates scope, objectives, resource planning, budget estimation, and action plan development effectively.

7. Do you believe that traditional strategic planning with a sustainable competitive advantage as a goal is still the most effective way to view strategy? Consider alternative approaches, and the role of IT, in your answer.  (15Marks)

I agree that traditional strategic planning with a sustainable competitive advantage is the most effective way to view different strategies. Consider the diagram below which represents the conventional processes. The SWOT analysis is one of the approaches which internal and external factors of company strategies. First, an organisation’s goals, missions and objectives are considered in context to the plan offered. Next, SWOT – strength, weakness, opportunities and threats are found. The power and weakness of a strategy reflect core competencies. Whereas, opportunity and threat assist critical success factors for the organisations. The strategic options and feasibility of new strategies are also checked. Hence, traditional methods evaluate everything step-by-steps only. On the contrary, no alternative approaches are considered for now. However, information technology requires to follow traditional procedures only.

Source (Recklies, 2015)

8. Discuss the Blue Ocean vs the Red Ocean Strategy and give at least 5 points of differentiation between them. Explain using an example of a company, service or product what the Product Changes (at least one per product change) are which makes this a Blue Ocean strategy company, product or service. (15Marks)

The Red Ocean Strategy is that in which the goal is to fight the competitive environments. Whereas, Blue Ocean Strategy is that in which the goal is to capture new market space. There are five differences between the strategies whenever they are implemented.

❏      Red Ocean competes in existing market space whereas Blue Ocean create new market space for their products.

❏      Red Ocean will beat the competition and goes further; however; Blue Ocean makes the competition irrelevant entirely.

❏      Red Ocean works on current demands. On the contrary, Blue Ocean works on new orders only.

❏      The value cost trade is made in the Red Ocean strategy and value cost trade is broken into the blue ocean.

❏      The system is aligned in lower cost, however; the system is aligned to achieve more economical price.

❏      Airline operator Ryanair has implemented Blue Ocean strategies and iTunes for Blue Ocean Strategies.

9. List and explain the six (6) Strategic Alignment Maturity Criteria. (12 Marks)

To check the maturity level, six strategic alignment maturity criteria are considered. They are as follows and helps to improve the strategic alignment for the organisation.

❏      Communications Maturity: As the name suggests, the maturity criteria of communication define knowledge sharing across the IT organisation. It is also called as an exchange of knowledge, ideas and information between businesses and IT to understand strategies and processes (Isal et al., 2016, p. 662). 

❏      Competency/Value Measurement Maturity: The contribution of the business to information technology is measured through value competency. For example,  ITand business metrics, balanced metrics, service level agreements, benchmarking, formal assessments, and continuous improvement (Isal et al., 2016, p. 662).

❏      Governance Maturity: The maturity level for governance discuss as well as review the priority and allocation of information technology resources. The budget allocation is one example through which resources are allocated as per the prices and their time.

❏      Partnership Maturity: The building of trust among the people involved by gathering risks and rewards and sharing define partnership maturity.

❏      Scope and Architecture Maturity: The scope and architecture refer to the fulfilment of various objectives. Some of them are customers, stakeholders, Infrastructure, technology evaluation, effective business processes and solutions.

❏      Skills Maturity: The skills for employees should be considered for better recovery. For instance, training, performance feedback, career opportunity are weighed so that the cultural and social surroundings of organisations can be improved (Luftman, 2015, p. 11).

Source (Luftman, 2015, p. 11)

10. Discuss the importance of change management in the implementation of the strategy. What should be considered when planning for organisational change, and how can resistance be dealt with? (10 Marks)

Change management is a systematic way through which goals, processes and technologies can be transformed for an organisation. Author Charece Newell (2018) reveal change is necessary due to bigger merger with other companies, being stable in a competitive market and brand establishment. Change management is adopted by companies so that they could upgrade services by taking new strategies. The change managers help the employees to understand change and taking control of consequences. The plans are implemented in the IT companies so that it could make them better. However, adoption is considered a vital issue from customers and employees both. Hence, for making smooth flow, change management is applied so that they could be convinced. The strategies can be used systematically with change management. After every frequent interval, change makes the company a better place in competitive advantage. However, people who oppose change control are called resistance users. This user resistance can be removed from the organisation with the help of different steps.

The steps or strategies are explained below which an organisation can adopt for their change management options.

❏      Collaboration: The collaboration of employees into teams and groups makes it easy. The teams must be allocated some goals and bring competitive atmosphere. Hence, employees will be engaged in such an environment and deliver excellent outcomes.

❏      Innovation and creativity: Change management should be implemented to seek innovation. The employees require challenge while working. However, the change should be robust and innovative.

❏      Peek employees interest: Change must offer something beneficial to the employees. For example, training programs for new technologies could attract their attention. The learning of something new would develop their mindsets.

❏      Promotional activities: Change management could be introduced in the form of promotional activities. For instance, make some fun seminars to understand and explain why change is mandatory. The lure to better performance measurement and bonus opportunities within change is another example of activities.

❏      Strategic Communication Plan: To make change management acceptable, it is mandatory to have a communication plan for introducing change to the employees and staff. The transparency with employees can be built to address issues like steps involved, job worries, affected departments and transition benefits to the organisation employees  Newell, 2018). Hence, communication strategies should be ready before implementing any change.

11. Discuss the importance of IT governance to organisations and describe some alternative forms of governance and their advantages and drawbacks. (15 Marks)
                IT governance is defined as a process which controls the use of Information technologies efficiently and effectively. There is a huge impact of governance on organisational behaviour as well as performance. The alignment of IT in organisations are implemented everywhere. However, it is necessary to check whether IT implementation is proper or not. Therefore, IT governance is used in the companies to ensures all the processes and infrastructure services are used properly or not. According to research published in the Governance Metrics International, after having strong governance in shareholder return the performance of approximately 1600 companies was improved (Lago, 2018). There are several alternative forms of governance used by companies. Some of them with advantages and disadvantages are discussed below.

❏      Application Portfolio Management: The portfolio management is done to identify activities which occur in the Information technology implementation. One of the major advantages is checking of risks and disasters about IT.  The disadvantage is portfolio management cannot support companies which are larger in size. 

❏      Audits: The audits are performed yearly for finance, technology and security purposes. The benefit is gathering errors and bugs or even frauds in IT implementation. However, cost and time are invested too much for the audit generation.

❏      Enterprise Architecture: The structure and its major operation are defined through EA. The maintenance of IT operations can be done easily through enterprise architecture. However, insufficient information for EA implementation dissolves the whole concept for organisations.

12. Describe several methods of assessing the potential value of an IT investment. Include an explanation of how managing a portfolio of IT investments differs from looking individually at IT projects. (15Marks)

IT investments are important for implementing new technologies in the organisation. Further, these technologies are helpful in several departments such as sales, managing operations, product production, services, project management, as well as business process improvement for activities (Hamaker, 2009). However, to put IT investment into existence several methods are used for determining potential value. There are two types of ways through which IT investment is evaluated. First, tangible benefits measured into quantities. For example, return on management, information economics, return on investment, cost-benefit analysis (Molina, 2003). These types of evaluation methods usually take quantifiable data to gather their IT investment feasibility. The return of investment is a quantitative measure which presents a ratio between the net profit of investment to the cost of investment. It means after applying any IT technology does cost produce any profits to the organisations or not effectively. Whereas, cost-benefit analysis is another measure which analyses decision by determining the average of total investment and minus the cost related to that particular decision. Information economics are those which determine whether IT investment will affect the company’s economic conditions. Lastly, how management will result in a better return for IT investment is the last method.  On the contrary, intangible benefits are those which are measured in the quality. Some examples include multi-objective, multi-criteria, value analysis and critical success factors. For instance, value analysis defines whether IT technology could be beneficial for companies or not. Furthermore, critical success factors are those which identify how IT will be successful as technology to the companies in the long run.

There is a huge difference between IT project management and IT investment portfolio management. The IT projects are managed through planning and organising of specific information technology goals in the organisation. The phases are present in the management of IT projects within steps like requirement gathering, feasibility study, coding, testing, implementation, deployment and maintenance. Within these phases, IT projects are developed and launched. Whereas, portfolio management of IT manages investments and project activities only. According to a research study, IT portfolio management assess innovations and helps business leaders to sort their priorities and management of IT investments effectively (Maroofi, 2016, p. 486). Therefore, portfolio management only looks after investments done in IT. However, project management looks after the project as a whole in information technology of the organisation.

13. Explain the different organisational structures that exist and the properties of the following: – Vertical Stovepipe, Horizontal Tunnel and Federal Models. In your answer discuss how a company’s strategic alignment maturity can be improved with the adoption of the better organisational model. (10 Marks)

            There are various types of organisational structure which companies follow.  Hierarchical Organisational Structure is the first type which is commonly seen in the companies. In this pattern, the structure follows a hierarchy within the organisation. The different levels are present on which operations are followed in several departments. This structure follows Vertical Stovepipe property for different organisations effectively. Vertical Stovepipe refers to a structure in which one affected area does not affect the other area as they are independent of each other. The second type is the functional organisation structure in which structure is grouped into functions of the employees. This follows property Horizontal Tunnel which defines viewing of the organisation through worker functionality rather than divisions made. The company’s strategic alignment maturity can be improved by implementing the right model. The organisational structure provides a way to sort out the departments. Further, the strategic alignment maturity can be determined through less complex structures effectively.

14. Discuss the issues surrounding the introduction and management of emerging technologies. Consider the following in formulating your answer: the characteristics of the technology; the adopters and the organisation, and the technology assessment process. (10 Marks)

The emerging technologies such as Artificial Intelligence, Big Data and 3D printing are evolving nowadays. However, potential problems occur due to such technologies. People are stuck on whether to adopt them and rather not touch them. There are several issues which can be found for emerging technologies. For example, Artificial intelligence is a vast concept as it implements human emotions into robots. However, AI is considered disruptive for this emotional intelligence characteristics. As robots could abruptly make any decisions to harm human beings shortly. Further, it is very costly to implement by organisations now. Furthermore, assessment of technology does not any proper experience with new technologies. Hence, the first issue is emerging technologies are disruptive in nature. Secondly, internal barriers from the employees for such technologies. The adoption issues come from employees who fear that emerging technologies could not work and can replace them. Third, security issues from which the company’s confidential information can be found in an unethical manner. Henceforth, the emerging technologies are considered good however opposed for characteristics, adoption barriers as well as lack of facilities for implementation.

15. Discuss the relationship between the way an organisation is structured and how the IT function is organised to support the organisation. Consider the following in formulating your answer: the common organisational structures, the ways the IT function can be organised, career paths for IT staff, and the goal of achieving strategic alignment.  (15Marks)

The organisation structure has an information technology department which provides and maintains information. Furthermore, the company has made a separate IT department so that functions could be handled successfully. The information technology functions are aligned within five domains and work accordingly. Furthermore, the structure is aligned into three different ways such as governance, Infrastructure and functionality. First, governance looks into the use of the system, operations and architecture comply or not. Secondly, Infrastructure checks whether IT systems are working properly or not. Lastly, functionality which cares whether electronic data is safe and secure from outside threats. Additionally, there are five domains of IT functions which are aligned as network responsibilities, contingency, application development, communication and technical support. The common organisational structure follows division approach where three ways are places. Further, the IT functions are organised in three ways functionality, governance and Infrastructure. Whereas, career opportunities for IT staff are network engineer, programmer, tester, system engineer, technical support executive. Lastly, the goal of strategic alignment is to provide a systematic way for IT functions in the companies.

References

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