• International Journal of Contents
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• v.6 no.4
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• pp.69-78
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• 2010

In recent years, many leading corporations are actively adopting IT as competitive resources to improve productivity and processes efficiency with strategic alignments. In effect, IT investment also continues to increase. As a vast growth of IT investment, questions and criticism on recent IT investment results are also rapidly being raised. Especially, improper decision making and management on IT investment may cause negative impact on the company's reputation and finances, therefore companies need reasonable and wise investment decision making on new IT projects. This study applies the conceptual framework of IT governance to IT investment decision making cases to examine how IT investment governance influences the quality of IT investment decision making and how business-IT strategic alignment affects the quality of IT investment decision making. This paper contributes to identify the main factors for reasonable and effective IT investment decision making and expected to provide proper guidelines for IT investment decision making.

• Journal of Information Technology Services
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• v.14 no.2
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• pp.195-229
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• 2015

Service innovation is considered a new way to gain competitive advantage and enhance firm performance. However, service innovation does not always guarantee the desired outcome. The effective organization and management of well-planned service innovation practices, which are consistent with the firm's business environment, become a critical challenge for service innovation success. In addition, an increasing number of studies have focused on the role of information technology (IT) capability in service innovations. Most studies on service innovation have focused on the influences of the strategic alignment and IT capability separately. In contrast, the current study combines them by investigating the positive moderating effect of IT capability on the alignment between business strategy and service innovation strategy. Based on data collected from 183 service firms in Korea, we first explore the effect of service innovation strategies when coupled with different business strategies on better firm performance. We then investigate the moderating effect of IT capability on the relationship between strategic alignments and firm performance. Empirical evidence indicates that a synergistic effect between alignment and IT capability on firm performance exists. Firms that have aligned service innovation strategy with business strategy should consider improving their organizational IT capability to ensure substantial leverage.

• Knowledge Management Research
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• v.13 no.5
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• pp.113-137
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• 2012

Since service innovation is considered as a new way to gain an advantage in a highly competitive environment, it is imperative for companies to align their service innovation strategy with their business strategy in order to achieve better firm performance. Accordingly, a critical challenge facing firms is how to effectively organize and manage a well-planned service innovation strategy in accordance with the direction of their business strategy. Firms with a good fit between business strategy (i.e., cost leadership, innovative differentiation, and marketing differentiation strategies) and service innovation strategy (service creation-focused, service delivery-focused, and client interface-focused strategies) are expected to have better firm performance than those without such a fit. Based on empirical data from 209 service firms in South Korea, this study aims first to investigate whether a certain service innovation strategy is more effective than others within a particular business strategy. We then examine whether their effective alignment positively affects firm performance. The empirical evidence indicates that the alignment of service innovation strategy with business strategy significantly influences firm performance. The adoption of service innovation strategy was found to have positive effects on firm performance with innovative differentiation and marketing differentiation strategies and negative effects with cost leadership strategy. Lastly, we discuss our study's implications for further research and practice.

• Proceedings of the Korea Association of Information Systems Conference
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• 1998.10a
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• pp.72-78
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• 1998

경영환경의 급속한 진전상황에서의 기업이 계속적인 경쟁우위를 가지기 위해서는 합리적이고 체계적인 전략경영이 필요하다. 본 연구에서는 각 기업별로 상이한 조직 전략적 상황에 적합한 정보시스템전략 특성을 평가함으로써 조직전략(business strategic)과 정보시 스템전략(information systems strategic)의 연계특성을 파악하고자 한다. 구체적으로 정보 시스템전략을 효율적인 기업경영과 장기적인 경쟁무기로 활용하기 위하여 조직전략 유형과 정보시스템전략 유형간의 결합형태를 조사하였다. 그리고 조직전략과 정보시스템전략의 전 략적 연계(strategic alignment) 측면에서 분석을 제안하였다.

• The Journal of Information Systems
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• v.19 no.1
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• pp.63-77
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• 2010

Strategic agility plays a critical role in sustaining competitive advantage in the turbulent environment. This study examines the relationship between a logistics information system and, strategic agility through the analysis of "H" corporation case. The results of case study showed that the introduction of logistic information system facilitates the degree of strategic sensitivity, collective commitments and resource fluidity, which are primary elements of strategic agility. This study gives an insight to the practitioners who attempt to create strategic agility through the implementation of logistic information systems.

• The Journal of the Korea Contents Association
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• v.7 no.9
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• pp.156-166
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• 2007

Traditional financial approaches have been failed to satisfy the firms in evaluating the payoffs from information technology(IT) investment. This research developed a processed-oriented model to evaluate the impacts of IT on the primary business activities within the value chain. The model proposed in this research incorporates corporate goals for IT and strategic alignment as key measurements of IT impacts. We found that corporate goals for IT can be classified into one of four categories: unfocused, operations focus, market focus, and dual focus(operations and market focus), using survey data collected from 137 corporate executives in Korea. The empirical analysis confirms that corporate goals for IT are useful indicators of impacts from IT in that executives in firms with more focused goals for IT perceive higher payoffs from IT in the value chain. We also found that strategic alignment contributes to higher perceived levels of IT payoffs.

• Journal of Industrial Technology
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• v.28 no.A
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• pp.191-194
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• 2008

IT governance becomes one of hot issues in corporate information system including university ERP. IT governance provides IT value and mitigates IT-related risks such that the organization takes new business chances and grows in the future. In this study, we briefly introduced IT governance and university ERP in the viewpoint of alignment to the business goal of the organization. And then, we proposed an strategic approach of IT governance for university ERP system with new performance evaluation items from IT-BSC. Finally, we pointed out some related research topics as further studies.

• Journal of Information Technology Applications and Management
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• v.20 no.3
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• pp.61-78
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• 2013

This study was initiated to inquire as to why Wal-Mart failed in the Korean market. For multi-national corporations, environmental differences such as cultural and social differences among countries require business strategies to vary country by country. In Korea, Confucian Ethics are penetrated in every aspect of people's lives. An important aspect of Confucian Ethics is the role and responsibility of women in society. Considering this, businesses need to understand Korean women's preferences as consumers and develop business strategies accordingly. This study emphasizes that IS strategy is one component of the business strategy and, as such, must be rooted in business issues. Understanding that IS strategy should fit to national contexts, this study investigates the underlying process in which IT-based strategic capability is developed according to national context to gain competitive advantages.

• Information Systems Review
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• v.12 no.2
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• pp.1-23
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• 2010

Most enterprise information systems today are silo systems in that they are not properly aligned nor integrated with one another. Such silo systems result because enterprises lack an architectural perspective in the planning and development of the systems. This paper proposes an Enterprise Architecture Orientation Model as a framework for the analysis, planning and design of the architectural quality of enterprise information systems. The model decomposes enterprise architecture into two dimensions-alignment and integration, and specifies for each dimension the general development and evolution stages enterprises may traverse. The alignment dimension represents the vertical strategic alignment of the systems with the vision, mission, strategy and goals of the enterprise, and is analyzed in terms of the performance, capability, and strategy of the enterprise. The integration dimension, on the other hand, represents the horizontal and functional integration among the systems that span organizational functions and boundaries, and is analyzed in terms of such technological components as IT infrastructure, data, application, and business processes. The model combines the alignment and integration dimensions to form a two-dimensional conceptual space for mapping the architectural quality of the enterprise. It is proposed that an enterprise use the model to identify and understand its position now and in the future in the architectural quality of the enterprise information systems. It is also proposed that the model provides a tool for the planning and design of the transition from one stage to the next in the alignment and integration of the systems to reach an architectural maturity. At the end, the paper discusses how the model can be applied differently according to the strategic orientation of the enterprise. An example of the usage of the model is presented.

• Journal of the Korea Convergence Society
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• v.6 no.6
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• pp.17-26
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• 2015

Firms that have adopted internet technology have been confused by distorted market signals. It is natural to look at marketplace outcomes for guidance, when confronted with a new business phenomenon. However, market signals can be unreliable in the early states of any important new information technology. New technologies trigger rampant experimentation, and the experimentation is often unsustainable. As a result, market behavior is distorted and must be interpreted cautiously. In Chapter 1, we review a concept of business model and roles of strategies in a business model. In Chapter 2, we discuss a strategic auditing method for analyzing market/channel positioning, product/service positioning, value chain/value network positioning and external environmental factors. In chapter 3, we introduces major frameworks for understanding factors forming strategies. The strategic grid model categorizes four quadrants depending on the level of impacts of information technology on operation and strategy. The strategic alignment model presents a new method of assessing an alignment of information technology and business throughout all elements of a business model. In this research, we review the concept of a business model. This research introduces factors that shape strategies and new frameworks for understanding these factors. The research objective of this manuscript is to present a guidance for firms how to use information technology for attaining sustainable competitive advantages.