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Investigating the strategic alignment of information technology and the organization's business strategies

Number of pages: 172 File Format: word File Code: 30323
Year: 2014 University Degree: Master's degree Category: Management
Tags/Keywords: Information technology - Information technology infrastructure - Organizational infrastructure - Strategic alignment - Strategy - Strategy and infrastructure of the organization
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  • Summary of Investigating the strategic alignment of information technology and the organization's business strategies

    Investigation of the strategic alignment of information technology

    and the organization's business strategies

    Abstract:

    The alignment of information technology strategy with business strategy is the most important debate before information technology and business managers. The general purpose of this research is to investigate the strategic alignment of information technology in the National Bank of Semnan province. field is used. In this research, the standard questionnaire to determine the alignment of pop was used and the validity of the questionnaire was confirmed through Cronbach's alpha test. The statistical population of the research includes 400 personnel of the National Bank of the province, which was determined by the stratified sampling method with proportional allocation, and the number of samples was determined by the Cochran formula, and randomly referred to them. The results show that with a probability of 95%, the organization's infrastructure, information technology infrastructure and organizational strategies are correctly defined in the National Bank of Semnan province. But the results show that the strategy of information technology in the bank is not defined correctly. The strategies of the organization are compatible with the infrastructure of the organization, and the degree of this compatibility is moderate to low. Also, the infrastructure of information technology is compatible with the strategies of information technology, but this compatibility is at a very low level, and finally, the strategies of the organization are integrated with the strategies of information technology.

    Key words: strategy and infrastructure of the organization, strategy and infrastructure of information technology, strategic alignment

    1-1-                     Introduction

    In an organization, if the executive managers do not know their information needs, the business managers are unaware of their information technology capabilities, the personnel involved with the organization's information technology do not have any knowledge and vision of the organization's business, the entire organization and the information departments of that organization operate completely separately from each other and do not know each other's needs. , will cause the efficiency of the organization's investment in information technology as well as the related business to be very low and low, because basically the information systems created and the technology used cannot take a step towards solving the needs and problems of the organization, and it itself causes overhead costs (Alipour Pijani, 2019 AH, 37). The degree of alignment between these two categories (business and information technology) can be examined and evaluated in two strategic and structural dimensions (Brown, Sharon, 1994, 69). This evaluation means that it is possible to find out by examining the degree of alignment of the organization's information technology strategy with the organization's business as well as the structural alignment of these two issues.

    In our country, in the early years of the 1380s (HH), the government, by defining and launching the Tekfa plan, made an effort to have a prominent and official presence in the country's information technology scene. and government agencies.

    Despite the need to carry out such investigations in organizations and especially in government agencies, so far little research has been carried out on alignment in organizations. In examining the reasons for this lack, it is possible to point out the important factor of the youth of the information technology industry in the country.

    In this chapter, the researcher briefly and according to the topic of the research, states the main problem of the research and the importance and necessity of the research, as well as defines the variables, assumptions and goals.

    1-2- Title of the research

    Investigation of the strategic alignment of information technology and business strategies of the organization (case study: National Bank of Semnan Province)

    1-3- Statement of the problem

    In the last decade, the discussion of the alignment of information technology and organizational goals has been the biggest concern, which has been reported by business and information systems managers. According to Chan [1] (2007), "the strategic alignment of information systems is one of the ten challenges that information technology managers face." Therefore, alignment is a vague concept that is difficult to understand and measure. Alignment is the examination of the similarity of organizational strategies and structures and information technology strategies and structures by focusing on issues such as the appropriateness or lack of appropriateness of the place of information technology in the organization, how and the existing relationships for reporting in the structure of the information technology unit, the concentration or lack of concentration of information technology services and the mutual understanding of information technology from business and vice versa.Checking the alignment of information systems and information technology with the organization's business is done in order to identify the organization's strengths and weaknesses and provide appropriate solutions and suggestions in the alignment process to increase the efficiency of the organization's investment in the information technology sector. Most organizations have recognized that their main problem is not having a suitable business strategy or high-level information systems architecture, but these two should be combined and defined in a way that provides the necessary assurance for a competitive presence in today's market. Despite the fact that organizations have realized the importance of aligning business strategy and information technology, they think that it is difficult or impossible to control the capabilities of information technology in order to obtain long-term benefits. (Loftman and Brier [2], 1999, 13)

    Organizational resistance and providing incorrect and even fake information, not feeling the need to carry out research and research in the field of information technology by the organization, having a mission only in spoken and written form, performing tasks outside the scope of standard tasks and goals of the organization creates ambiguities for the provision of correct and reliable information for the information technology unit, which as a result of the information technology unit It can properly support the business and its strategies.

    Scientific centers have also paid due attention to the issue of alignment. King [3] (1978), David and Elson [4] (1985), Henderson and Nettraman (1992), Rich and Benbest [5] (2000) and. In their research, they have examined the necessary tools to achieve alignment and its impact on the organization's output. In this research, the researcher seeks to examine the strategic alignment of information technology and business while studying a large and comprehensive library.  In this research, variables under the title of "organization strategies[6], information technology strategies[7], organization infrastructures[8], and information technology infrastructures[9]" were examined in the form of a model. This model is derived from the strategic alignment model of information technology and business of Henderson and Nettraman (1993) with the changes suggested by the supervisor, which is the main reason for these changes is to reduce the number of research variables and reduce the difficulty and problems of doing it. The main issue of the research is whether there is a strategic alignment between information technology and the organization or not?

    1-4- Necessity and importance of research

    The alignment of information technology strategy with business strategy is considered as the most important debate before information technology and business managers not only in America but also in Europe and other parts of the world. If the return on investment of information technology is a function of strategic alignment, then any action to increase the business value of information technology is considered in the context of the degree of alignment of information technology with the organization's strategy. Organizational change has been proposed and separate and isolated costs should be avoided." According to this discussion, organizations that are more focused on information technology goals have recognized a higher strategic alignment in their organization. (K. Bura, [11] 2000, 45) proposed that accurate measurement of strategic alignment is unattainable due to the complexities and many influencing factors of the organization, that these organizational exchanges are very complex, because both strategy and other levels Operations in the organization have an impact on them.

    According to these points, determining the various factors that organizations should consider is a topic that researchers have spent considerable time on, and we intend to identify and evaluate the strategic alignment of information technology and business.

    Many aspects of the alignment of business and information technology have been investigated. (Chan et al., 1997, 37) have measured the compatibility of information technology strategies with business strategies, some researchers have emphasized the importance of structural alignment and suggest that the structures of information technology be aligned with the organization's business structures (Broadbentville, 1994, 19).

  • Contents & References of Investigating the strategic alignment of information technology and the organization's business strategies

    List:

    Table of Contents

    Chapter One: General Research

    1-1) Introduction. 2

    1-2) Title of the research. 3

    1-3) statement of the problem. 3

    1-4) Necessity and importance of research. 5

    1-5) research objectives. 7

    1-6) research questions. 8

    1-7) research hypotheses. 8

    1-8) research area. 9-1-9) Conceptual and operational definitions of variables 10-1-1) Structure of project chapters 13-2nd chapter: Research literature 2-1) Introduction 15-2-2) Growth and evolution of information systems and information technology in organizations 15-2-2-1) Information systems and technology Information. 17

    2-2-2) Strategic information systems course. 18

    2-2-3) Strategic use of information technology. 19

    2-2-3-1) success factors in strategic information systems. 19

    2-2-3-2) Management results 21

    2-2-4) What does information technology strategy and information systems mean? 26

       2-2-5) Why is information technology strategy and information systems needed? 28

    2-3) alignment. 29

    2-3-1) Definition of alignment. 29

    2-3-2) Benefits of alignment. 30

    2-3-3) Opposing theories of alignment. 33

    2-3-4) problems of achieving alignment. 34

    2-3-5) How to achieve alignment? 35

    2-3-6) After achieving alignment. 38

    2-4) Alignment models. 40

    2-4-1) A conceptual model for strategic alignment. 41

    2-4-2) IT alignment strategy. 42

    2-4-3) Alignment model C4. 43

    2-4-4) Clark model. 45 2-4-5) Bitham alignment model 47 2-4-5-1) Steps to fix misalignment 48 2-4-5-2) Bitham alignment method. 49

    2-4-6) Strategic alignment maturity measurement model. 49

    2-4-7) Strategic alignment model. 51

    2-4-7-1) Business strategy 52

    2-4-7-2) Organizational structure 52

    2-4-7-3) Information technology strategy 53

    2-4-7-4) Information technology infrastructures 54

    2-4-7-5) Communications 55

    2-4-7-6) Perspectives of the strategic alignment model. 55

        2-4-7-6-1) Strategy implementation perspective 60

    2-4-7-7) Management concepts 61

       2-4-8) Comparison of alignment models. 62

    2-5) Theoretical framework of research. 64

    2-6) Review of past studies. 65

    2-6-1) Internal studies. 66

    2-6-2) Foreign studies. 67

    2-7) Summary. 69

    Chapter Three: Research Method

    3-1) Introduction. 71

    3-2) Research method. 71

    3-3) statistical population. 72

    3-4) statistical sample. 72

    3-4-1) Sampling method. 73

    3-5) Information collection methods and tools 74

    6-3) measurement scales. 75

    3-7) Validity and reliability of measurement tools. 76

    3-7-1) Reliability. 76

    3-7-2) Narrative. 77

    3-8) Data analysis method 81

    3-9) Summary. 82

    Chapter Four: Data Analysis

    4-1) Introduction. 84

    4-2) Descriptive statistics. 85

    4-2-1) Organizational post of respondents. 85

    4-2-2) Educational status of respondents. 86

    4-2-3) The field of study of the respondents. 87

    4-2-4) The status of the respondents' work experience. 88

    4-2-5) Level of familiarity with technology of respondents. 89

    4-3) Inferential statistics. 89

    4-3-1) The test of the normality of research variables. 89

    4-3-2) Hypothesis test. 90

    4-3-2-1) Correlation between research variables. 90

    4-3-2-2) Examining the status of research variables. 96

    4-3-2-3) structural equations. 99

    4-4) Summary. 118

    Chapter Five: Conclusions and Suggestions

    5-1) Introduction. 120

    5-2) research findings. 120

    5-2- 1) Demographic characteristics. 120

    5-2-2) The results of research hypotheses. 121

    5-3) discussion and conclusion. 124

    5-4) Providing practical suggestions. 129

    5-5) research limitations. 132

    5-6) Suggestions for future research. 133

    5-7) Summary. 134

    Sources

    1) Persian sources. 136

        2136

        2) Latin sources. 138

    Appendix

        1) Research questionnaire. 143

    2) Research computer outputs. 148

    List of tables

    Table 2?1) Strategic alignment perspectives. 57

    Table 2-2) Comparison of alignment models. 62

    Table 3-1) How to calculate the sample size through Cochran. 73

    Table 3-2) The number of items related to each variable in the questionnaire. 75

    Table 3-3) Reliability of different parts of the pre-test questionnaire based on Cronbach's alpha method. 77

    Table 4-3) Spearman's rank correlation coefficient calculated by two experts 79

    Table 4-1) Organizational position of the respondents. 85

    Table 4-2) Educational status of the respondents. 86

    Table 4-3) Educational field of the respondents. 87

    Table 4-4) Work experience status of the respondents. 88

    Table 4-5) Status of respondents' familiarity with technology. 89

    Table 4-6) Kolmogorov Smirnov test results. 90

    Table 4-7) description of the statistical indicators of the information technology infrastructure of the Minister of Organizational Constructions. 91

    Table 4-8) Description of statistical indicators of IT infrastructure and IT strategy. 93

    Table 9-4) Description of statistical indicators of information technology strategies and organizational strategies. 94

    Table 4-10) Description of the statistical indicators of the organization's strategies and the organization's infrastructure. 95

    Table 4-11) Summary of descriptive statistics of 4 variables. 97

    Table 4-12) Test of the hypothesis of the equality of the average of a society. 97

    Table 13-4) Statistical descriptive indices of questionnaire variables. 102

    Table 4-14) Correlation coefficient between factors. 103

    Table 4-15) Name and description of the variables used in the model. 106

    Table 4-16) KMO statistics and the results of the Bartlett-Sphericity test. 107

    Table 4-17) Results of the generality of the tested model. 107

    Table 4-18) The results of checking the validity of the model and fit indices. 108

    Table 4-19) modified model fitting results 111

    Table 4-20) Confirmation/disconfirmation of the relationship between variables and standard maximum likelihood estimates for the model. 112

    Table 4-21) Standardized regression weight between variables for the theoretical model of the research. 115

    Table 4-22) Summary of correlation results between variables 117

    Table 4-23) Summary of true/false definition of variables 118

    Table 5-1) Check the solutions for the impact of information technology infrastructure area on information technology strategy. 130 130

    Figure list

    Figure 2-1) Relationship between business, data processing systems, management and strategic information. 22

    Figure 2-2) The relationship between business, information systems strategy and information technology strategy. 25

    Figure 2-3) The effectiveness of alignment factors on the efficiency of information technology. 32

    Figure 2-4) Conceptual model of strategic alignment. 41

    Figure 2-5) The concept of IT alignment strategy. 42

    Figure 2-6) C4 alignment model. 45

    Figure 2-7) Five forces affecting the organization's strategic goals. 46

    Figure 2-8) IT and business alignment model 47

    Figure 2-9) Five levels of strategic alignment maturity model. 50

    Figure 2-10) Strategic alignment model. 51

    Figure 2-11) strategy implementation perspective. 61

    Figure 2-12) Research Conceptual Model 64

    Figure 4-1): Showing the basic stages of analysis 100

    Figure 5-1) The final view of the alignment for the National Bank of Infrastructure and Information Technology Strategy. 126

     

     

     

     

     

     

     

     

    List of charts

    Chart 4?1) Status of organizational post of respondents. 85

    Chart 4-2) Educational status of the respondents. 86

    Chart 4-3) Educational field of the respondents. 87

    Chart 4-4) Work experience status of the respondents. 88

    Chart 4-5) The status of respondents' familiarity with technology. 89

    Chart 4-6) Description of statistical indicators of information technology infrastructure. 91

    Chart 4-7) Description of the statistical indicators of the organization's infrastructure.

Investigating the strategic alignment of information technology and the organization's business strategies
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