Week 4 - Strategic Alliance Model

Source / Reference:
1)  "Strategic Alignment: Leverage Information Technology for transforming organization" by J C Henderson and N Venkartraman 1993
http://search.proquest.com/docview/26252741/134A6C8B53F19A4F606/1?accountid=16210
2)  http://wiki.mbalib.com/zh-tw/%E6%88%98%E7%95%A5%E4%B8%80%E8%87%B4%E6%80%A7%E6%A8%A%E5%9%8B#SAM.E7.9A.84.E5.9B.9B.E5.A4.A7.E5.9F.9F.E5.8F.8A.E7.9B.B8.E4.BA.92.E5.85.B3.E7.B3.BB

Subject:
In Lect 4 - Which alignment strategy in SAM model is the best? and why?
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Response:

Four main alignment perspectives, namely strategy execution, technology transformation, competitive potential and service level have their own merits.

Strategy execution is the most common perspective used by traditional company since this perspective is the classic strategic management view. Both design of organizational and IT infrastructures are drive by business strategy. The performance is mainly assessed by financial parameters.

For technology transformation, this perspective is using IT strategy and IT infrastructure to support the chosen business strategy. Benchmark test is used to assess the performance.

Unlike the previous perspectives, competitive potential considered IT strategy as driver instead of the business strategy. This perspective seeks to identify the best business strategy and organizational infrastructure based on the IT strategy. Business leadership with some measurements such as market share and growth is used to assess the performance.

Service level is to ensure the effective use of IT in order to adapt the fast-changing needs of customers. Measurements like end-user-needs surveying is used to get to know about the customer satisfaction in order to assess the performance.

From my point of view, there is NO the best alignment perspective. According to different situations, the best alignment perspective with respect to that particular circumstance should be different. It depends on both external and internal factors.

For example, large size companies which directly provide services to customers may focus more on the level of customer satisfaction. Besides, large size companies have adequate capital to invest more on IT development and to improve the current IT strategy and system to ensure the effective use of IT. Therefore, service level maybe the best alignment perspective for this kinds of companies.

Another example is that for the large companies that manufacturing products instead of providing services, competitive potential maybe the best alignment perspective. These kinds of companies may focus more on the product leadership. Large companies also have better IT capabilities to associate with the business strategy.

To conclude, the best alignment perspective can be found based on the analysis of the firm's situation. There is no one general best alignment perspective.