• Title/Summary/Keyword: Strategy and Organization Alignment

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The Influence of IT Governance Implementation Factor on Information Systems Effectiveness and the Moderating Effect of Strategic Alignment (IT거버넌스 실행요인과 정보시스템(IS) 효과성, 그리고 전략적 연계의 조절효과)

  • Choi, Sang-Min;Moon, Tae-Soo
    • The Journal of Information Systems
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    • v.20 no.2
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    • pp.207-228
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    • 2011
  • IT governance is an integral part of enterprise governance and consists of the leadership, organizational structures, and processes that ensure organization's IT decision making for achieving organizational goal. Most firms have failed to resolve the balance in building IT governance. The challenge is to align IT strategy with business strategy in establishing and implementing effective IT governance. The purpose of this study is to find out the relationship between IT governance implementation factors and IS effectiveness, and the moderating effect of strategic alignment of IS strategy with business strategy on IS effectiveness. IT governance implementation factors consist of IT vendor management, IT human resource management, and IT infrastructure. Strategic alignment was measured as the alignment between business strategic orientation and IS strategic orientation that used in the research of Chan et al.(1997). In the relationship between three IT governance implementation factors and IS effectiveness, the results of multiple regression analyses showed that IT human resource management is an important determinant to influence IS effectiveness. The additional analysis using multiple regression showed that strategic alignment of IS strategy with business strategy has moderated the relationship between IT governance implementation factors and IS effectiveness.

The Effects of IS Strategic Alignment on the Development of IT Infrastructure: The Roles of Strategic Performance Measurement Systems (정보화 전략과 기업 전략의 연계가 정보기술 하부구조 구축에 미치는 영향: 전략적 성과평가시스템의 역할)

  • Choe, Jong-Min
    • The Journal of Information Systems
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    • v.22 no.1
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    • pp.89-116
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    • 2013
  • The influence factors on the development of information technology(IT) infrastructure for knowledge management(KM) were not empirically investigated and identified. This study empirically examines the relationships among strategic performance measurement systems(SPMS), organizational learning, the strategic alignment of business strategy with information systems(IS) strategy, which is the necessary condition to provide the kinds of knowledge required for the successful realization of business strategy, and the active construction of IT infrastructure for KM. This study demonstrates that SPMS directly affects the organizational learning, with which the members of an organization acquire the types of knowledge about strategic goals or objectives and the ways attaining these goals, and indirectly influences the IS strategic alignment through organizational learning. Thus, the alignment between business strategy and IS strategy can be facilitated and activated by the adoption and implementation of SPMS. According to the results of this study, it is observed that the IS strategic alignment and organizational learning positively affect the activation of the development of KM IT infrastructure in a firm. The results of this study also shows that the construction of KM IT infrastructure, which supports the realization of KM activities, such as knowledge creation, transfer and sharing, can enhance the strategic position of a firm, and the intensified competitiveness of a firm can lead to the improvement of performance.

Case Study of Business Innovation of Agriculture Venture Firm through Strategic Alignment between Strategy and Infrastructure (전략과 인프라의 전략적 연계를 통한 농업벤처기업 경영혁신 사례 연구)

  • Park, Sang Hyeok;Han, Man Sun;Jeon, Hyoung Kwang
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.9 no.2
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    • pp.35-43
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    • 2014
  • Strategic link, to develop the business strategy and to build the infrastructure of the organization, is an important challenge to management activities of the company, it is a major study of management academia. Effective strategy and information systems influence the success of the organization. Strategic alignment model for analyzing linkage was introduced in this study. Strategic alignment model, is composed of business strategy, organization infrastructure, information technology strategy, and information technology infrastructure. We have studied that this models appear in some form in the field of actual companies. Our research subject is a agricultural venture in Chungnam province.

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How Should Service Innovation Strategy be Aligned with Business Strategy? : Focused on the Moderating Effect of IT Capability (서비스혁신 전략과 비즈니스 전략 간 연계와 정보기술 역량의 조절효과에 관한 연구)

  • Ryu, Hyun-Sun;Lee, Jae-Nam
    • 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.

A Case Study on Strategic Alignment for e-Transformation of Pulmuone (e-Transformation을 위한 풀무원의 전략적 연계 사례연구)

  • Yoon, Cheol-Ho;Kim, Sang-Hoon
    • Information Systems Review
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    • v.7 no.2
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    • pp.183-194
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    • 2005
  • This study validated the strategic alignment approach for e-Transformation of the traditional firm through the case analysis of e-Transformation practices performed in Pulmuone Inc., which had been managed and operated in a traditional mode. The e-Transformation approach identified in this study was focused upon the strategic alignment among 4 domains of business strategy, organizational infrastructure and processes, IT strategy, and IT infrastructure and processes, and was performed in the following process: 1) developing IT strategy to perform business strategy, 2) building IT infrastructure and processes to support IT strategy, and then 3) transforming organizational infrastructure and processes based on IT infrastructure and processes. The theoretical implication of this study is to empirically verify the Strategic Alignment Model hypothesized by Henderson and Venkatraman(1994) through the case analysis on e-Transformation of Korean traditional firm, and the practical contribution is to provide a feasible and effective guideline in carrying out e-Transformation of the typical traditional organization.

A Diagnosis of Strategy Execution Ability and Corresponding Measures for Korean Oceanic Shipping Companies

  • Ahn, Ki-Myung;Kim, Myung-Jae
    • Journal of Navigation and Port Research
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    • v.34 no.7
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    • pp.595-601
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    • 2010
  • This paper aims to diagnose the strategy execution ability and to provide corresponding measures for Korean oceanic shipping companies. The analysis method is the t-test between importance awareness and Corresponding ability for strategy execution diagnosis index(XPP). According to the diagnosed results, the strategy development is unsatisfactory because the strategy implemented does not adhere to concurrent environmental change. Moreover, the execution of the strategy is also unsatisfactory. Therefore, an evaluation shows that there is a need for a SWOT analysis using BSC, an organization structure to strengthen the strategy execution ability and the support from the market condition analysis prediction center.

Enterprise Management according to the Development of Information Technology (정보기술의 발전과 기업경영)

  • Kim Chang-Tae
    • Management & Information Systems Review
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    • v.6
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    • pp.45-61
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    • 2001
  • Among the changes of the management environments surrounding enterprises, one of the most important reasons that affect the organization management in the future would be the rapid development in the field of information technology(IT). And every company takes the speed to be important to maintain the competitive superiority of its own especially. To meet this kind of circumstances, the expectations to reorganize the business processes using the IT become higher. The IT is worth when the companies manifest their own potential powers by taking advantage of the it and when they evolve and apply the novel ways to the business as well. Even though they, therefore, introduce the information system to realize their strategic superiorities, it is difficult to achieve their initial aims. Moreover, in the phase of IT introduction, it is necessary to include the property of alignment between the IT and the conventional management fields containing the management strategy and the organization planning. In the case the company revolution by IT is carried out, the two facts we should note to maintain the alignment between the management strategy and the target of organization are as follows. First. it is required to share the common and underlying recognition on the IT between the chief executive officers(CEOs) and the system part. Second. it is important to exchange information with other companies by utilizing the IT.

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Knowledge-driven Dynamic Capability and Organizational Alignment: A Revelatory Historical Case

  • Kim, Gyeung-Min
    • Asia pacific journal of information systems
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    • v.20 no.1
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    • pp.33-56
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    • 2010
  • The current business environment has been characterized as less munificent, highly uncertain and constantly evolving. In this environment, the company with dynamic capability is reported to be more successful than others in building competitive advantage. Dynamic capability focuses on the link between a dynamically changing environment, strategic agility, architectural reconfiguration, and value creation. Being characterized to be flexible and adaptive to market circumstance changes, an organization with dynamic capability is described to have high resource fluidity, which represents business process, resource allocation, human resource management and incentives that make business transformation faster and easier. Successful redeployment of the resources for dynamic adaptation requires organizational forms and reward systems to be well aligned with firm's technological infrastructures and business process. The alignment is considered to be an executive level commitment. Building dynamic capability is knowledge driven; relying on new knowledge to reconfigure firm's resources. Past studies established the link between the effective execution of a knowledge-focused strategy and relevant setting of architectural elements such as human resources, structure, process and information systems. They do not, however, describe in detail the underlying processes by which architectural elements are adjusted in coordinated manners to build knowledge-driven dynamic capability. In fact, understandings of these processes are one of the top issues in IT management. This study analyzed how a Korean corporation with a knowledge-focused strategy aligned its architectural elements to develop the dynamic capability and thus create value in the dynamically changing markets. When the Korean economy was in crisis, the company implemented a knowledge-focused strategy, restructured the organization's architecture by which human and knowledge resources are identified, structured, integrated and coordinated to identify and seize market opportunity. Specifically, the following architectural elements were reconfigured: human resource, decision rights, reward and evaluation systems, process, and IT infrastructure. As indicated by sales growth, the reconfiguration helped the company create value under an extremely turbulent environment. According to Ancona et al. (2001), depending on the types of lenses the organization uses, different types of architecture will emerge. For example, if an organization uses political lenses focusing on power, influence, and conflict. the architecture that leverage power and negotiate across multiple interest groups would emerge. Similarly, if an organization uses economic lenses focusing on the rational behavior of organizational actors making choices based on the costs and benefits of action, organizational architecture should be designed to motivate and provide incentives for the actors (Smith, 2001). Compared to this view, information processing perspectives consider architecture to be designed to maximize the capacity of information processing by the actors. Using knowledge lenses, the company studied in this research established architectural elements in a manner that allows the firm to effectively structure knowledge resources to form dynamic capability. This study is revelatory single case with a historic perspective. As a result of this study, a set of propositions and a framework are derived, which can be used for architectural alignment.

An Empirical Study on Factors that determine on Success Factors of Total Quality Management Implementation (지속적인 종합적 품질경영(TQM) 실행의 결정요인에 관한 연구)

  • 서창적;김재환
    • Journal of Korean Society for Quality Management
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    • v.27 no.3
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    • pp.1-16
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    • 1999
  • According to the study of TQM implementations, the odds that an organization will successfully implement total quality management are two to one-against it. Based on the Brown's study, two thirds of all TQM implementations are dropped or fail altogether. However, organizations armed with knowledge of the factors that have the biggest impact on their success can take steps to influence or change those factors. In this paper, we studied on the degree of influence between those factors and successful start up and alignment factors. Based on extensive literature reviews those factors, threat, commitment, plan, progress and strategy are determined. Also we determine the successful start up and alignment factors. A framework of research including above factors is developed and tested statistically The Perceived data are collected from managers of quality departments of 141 Korean firms through survey. The results show that the rating of those factors which determine success of implementing TQM is progress, commitment, strategy and progress. But the factor of threat shows negative influence for the success of implementing TQM.

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Information Technology Strategy and Architecture: An Explanatory Contingency Framework (정보기술전략과 정보기술아키텍쳐: 설명적 상황이론 프레임워크)

  • Yum, Ji-Hwan
    • Information Systems Review
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    • v.4 no.2
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    • pp.81-94
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    • 2002
  • The study employs the conceptual framework of the strategic success paradigm developed by Ansoff (1990). The strategic success paradigm denotes that optimal performance will be attained when the level of environmental turbulence is aligned with the strategic aggressiveness and organizational capability. Based on the paradigm, authors developed the concept of IT (information technology) aggressiveness (IT aggressiveness henceforth) and capability (IT capability henceforth). In order to clarify the different concept of IT aggressiveness and capability, the author brought the concept of IT architecture. The difference of capability and architecture lies in the depth of technical considerations. Where capability refers attitudinal aspects of managers, architecture emphasizes technical capacity of the organization as a whole. The study validated the need for alignment among IT architecture, environmental turbulence and IT aggressiveness. The imbalance between IT strategy and IT architecture (such as a higher level of IT aggressiveness but a lower level of IT architecture, or vice versa) has a marginal contribution to the organizational IT performance. The alignment among organizational environmental turbulence, IT aggressiveness, and IT architecture resulted in an optimal level of IT performance especially in a turbulent environment.