8 Technology, Alignment and Strategic Transformation

What is a business strategy? This question could provide sufficient material for an entire MBA course. For the purposes of this chapter, we will summarize our answer in a few sentences. A business strategy is a vision, a strategic intent [CAM 91]. This includes the long-term objectives, the policies and the resource allocations necessary to achieve the strategic intent [HAM 90]. The much more operational question that follows the strategic vision question is often: How do I compete with my competitors and exceed them in my markets? How can the top management implement the strategic transformation necessary to attain the strategic objectives and achieve the strategic intent?

First, we will describe the alignment between business strategy and information system strategy. Next, we will focus on the contribution of the information system and new technologies to the strategy, and the information system’s transformative contribution both to operational excellence and to new business opportunities. Lastly, we will list the characteristics of a strategic transformation ...

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