W4 - 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)  “transforming the enterprise: The alignment of business and information technology strategies” by J. N. Luftman

http://search.proquest.com/docview/222418675/fulltextPDF/134BC9F624A4310E788/2?accountid=16210

3) “CW Buyer's Guide: Optimizing networks for cloud computing and virtualization” by ComputerWeekly.com 2012

http://bitpipe.computerweekly.com/detail/RES/1328026347_407.html

4) “The Future of Innovation Management: The Next 10 Years” by ComputerWeekly.com 2011

http://bitpipe.computerweekly.com/detail/RES/1328031157_402.html

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

Response:

Nowadays, strategic alignment between business and Information Technology is regarded as a fundamental issue to business that strategic alignment model is an important driving force to achieve business value through investments in IT way. There are four SAM models, namely strategy execution, technology transformation, competitive potential and service level, applying different linkage of business strategy, information technology strategy, organizational infrastructure and processes, and IT infrastructure and processes. Four alignment strategies completely carry out the driving force of achieving competitive advantage through different way. No specific one can be the best model as different model leading the business success depends on industry nature, business value, culture and goals of business. The most suitable alignment strategy matching most of the above criteria deserves “the best model”.

The basic concept of SAM is illustrated as bellows.

SAM models is shown as follows.

Some may think “Service Level” Alignment approach is the best because it focuses on customer satisfaction that matches most of business value of enterprise according to 2 articles found in ComputerWeekly.com. For example, serving industry requires operation of speed, flexibility and thoughtfulness that "Service Level" alignment approach must help. A typical case can be shown by Money Back Card of ParknShop which makes use of RFID technology in terms of loyalty program to attract their customer to buy more goods. Secondary benefits of Money Back Card are convenient their customers to carry and distribute to their family members to spend more in ParknShop as the reward is by family count. As a result of uplifting the sales volume, it can easily be seen that enterprise can take advantage of information technology so as to improving business process and business competence.

However, it is not every business suits “Service Level” Alignment approach. Every alignment strategy has its own advantages to specific industry or business. For some small or middle-size traditional enterprise, they regard IT as supporting role. They don’t need IT to provide featured product or service. “Strategy execution” Alignment strategy is more suitable. Besides, “Technology Transformation” Alignment suits the company which aims at technology leadership that business strategy drives needs to develop IT strategy while “Competitive Potential” Alignment suits the corporate which targets on business leadership that IT enables strategic opportunities to business. Easy Spot of Promise can be shown as a case of “Technology Transformation” alignment that its business strategy raises the use of technology to enhance the customer service so as to reach the simple, speedy and convenient operation. Furthermore, Apple inc.  shows an example of “Competitive Potential”. Apple inc. develops popular and featured smartphones to maintain the product leadership.

Therefore, no alignment strategy is the best. Each alignment strategy has its particular benefits to specific industry or company. It should depend on which alignment strategy fulfills competitive advantage and achieve ultimate business goals.