Week 4 - Strategic Alliance Model


Source/Reference:
1. J C Henderson and N Venkartraman, "Strategic Alignment: Leverage Information Technology for    transforming organization", 1993


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


Response:
In my opinion, there is no best alignment strategy in the real world since different business or industry have their own natures and requirements. In other words, no single strategy would be suitable for all business in the world.  Therefore, we should first try to analyse the internal and environmental components and then find out the most suitable alignment strategy for a particular business.


Four perspectives of the Strategic Alliance Model , namely strategy execution, technology transformation, service level and competitive potential, were taught in lecture 4. I will analyse them one by one.


1. strategy execution
It is the most commonly used among the four perspectives. Business strategy is emphasized in both organizational design choices and the design of  IT infrastructure. All IT components are considered as the expenses of a company. Its framework is regarded as comprehensive and well-structured. Hence, this strategy may better suit some companies with stable and well-understanding business strategies. 


2. technology transformation
IT strategy, that would not be mentioned in strategy execution, is considered. In this case, business strategy creates the need of developing IT strategy. Compared to strategy execution, it is more flexible since it is not constrained by the organization design. It is obvious that this kind of strategy is the most suitable for technology-based industry and other creative industries. It is because they are ever-changing in terms of technological and customer requirements. As such, the organizational infrastructure inside a company may be subjected to change frequently.


3. service level
Use of IT is important. IT serves as a service or strategy that influence performance and organization. It may be the best in the service-based industry, especially with online store. They rely on IT service and strategy while the business strategy is indirect. They gather and analyse customer information and charaterisrics through IT service and then make decision.


4. competitive potential
Through IT strategy, business strategy is determined. IT provides strategic opportunities for new product and service. There may be a large amount of potential competitors. Therefore, some companies may make use of IT to maintain the product leadership.


Conclusion
With respect to the view of Henderson and Venkartraman, I agree to the extent that “one universally superior mode to formulate and implement strategy”. In our dynamic or ever-changing society, even in the same company, the chosen perspective may change from time to time. Thus, the highest revenue would be maintained.