Relationship between Business Strategy and IT Strategy Essay

The relationship between a concern and its IT resources extends far beyond the usage of IT as a mere tool in proper executing of concern operations. Alternatively.

both are linked profoundly. The relationship starts with the alliance of Corporate Strategic Planning ( CSP ) with Information Systems Planning ( ISP ) . Determining an entity’s mission and ends and developing competitory schemes to run into those ends is CSP. This is an iterative process. ISP is a systematic manner of set uping the information demands of an organisation.ISP besides includes developing systems.

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engineerings and databases one time these demands are known. ISP is successful merely when it is done maintaining in head the mission. ends and competitory scheme determined through CSP ( Hoffer.

George. and Valacich. 1994 ) . The procedures of CSP and ISP run parallel and affect three stairss. First.

current organisational place is described along with the current IS procedures. informations. human resource and technological stock list. Second. the coveted future province of organisation is determined.

This simultaneously outputs required future IS state of affairs.Third measure is to develop a strategic program to accomplish the pictured hereafter province. ISP plays a important function by placing the agenda of undertakings to set about to convey IS state of affairs in line with corporate place ( Hoffer. George.

and Valacich. 1994 ) . With this model laid out. we will reply the inquiries about Lowry’s dream of collaborative computer science and the construct of B2B exchange.

Were there jobs with scheme preparation? In instance of collaborative computer science. the scheme was earnestly flawed due to these grounds.Jack Lowry was so enthusiastic in chase of dream that he failed to properly find whether the people outside Goldman were ready for such an ambitious undertaking yet. He dedicated two old ages and 1000000s of dollars in puting the land without happening a spouse willing to do a committedness ( Worthen. 2001 ) because his judgement of importance of the undertaking for Goldman and its spouses was erroneous. Collaborative computer science was doubtless an thought worth happening. However.

it was in front of its clip.A company in a different place may hold had much better consequences since Goldman resided much lower in supply concatenation and did non possess the purchase to convey about an industry broad alteration. It required a deep inspection and repair of full industry including supply concatenation. makers and clients. Therefore. the scheme had serious jobs in clocking. place and power to implement.

Same is true for the instance of B2B trading exchanges. The construct of conveying together providers and clients in a market place is doubtless really utile but the scheme used for the intent was non formulated decently.It failed to place the existent job: deficiency of package and services to do those exchanges useful ( Sawhney. 2002 ) and focused on making exchanges. The right attack would hold been to supply package and services to ease coaction between all stakeholders and the exchanges could come automatically as a logical effect. Were there jobs with scheme execution? Lowry used Goldman as a research lab to work on his collaborative computer science dream and used 1000000s of dollars in the procedure.Since Goldman did non keep the place in the industry to consequence the alteration envisioned by Lowry. the execution of his scheme had this basic job.

For automotive industry. companies such as GM or Ford from USA or Toyota from Japan were in much better place to implement Lowry’s dream because of their laterality in the industry and the dependance of full industry on these giants. They besides had advantage of being on top of the concatenation since they were the next-to-last purchasers of the industry and had direct contact with consumers. the ultimate purchasers of finished merchandises.

The instance for B2B exchanges besides had flawed executing of the thought since they set out to work out a job that did non even exist. They had to re place themselves and alter schemes to get down acquiring positive consequences. They changed their focal point from making a trade exchange which was non needed to work outing single concern jobs via IT solutions. This gave them a client portfolio which could subsequently be geared towards the end of making a trade exchange. Were there jobs with the strategic procedure?In instance of collaborative computer science. the procedure was flawed since Lowry did non set important clip and energy in finding whether any protagonists of his construct be outside Goldman.

will he happen spouses ready to put into his proposed system. He assumed that he will happen spouses readily based merely on casual probe before giving important resources to the undertaking. The right procedure would hold been to fix spouses before a brawny investing into the undertaking to avoid neglecting to happen any spouse after two old ages.In instance of B2B exchanges. the procedure had the job that the stairss were reversed.

The experts wanted to hold an full industry on board to make the exchange. The first right measure. as they subsequently realized. was to work out the jobs of single clients that may subsequently give a portfolio to be used to make an exchange. The scenario leads to the decision that in both instances. the constructs and thoughts were fantastic but schemes were grossly inappropriate. The instances reinforce the importance of the relationship between CSP and ISP at every degree.


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