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A corporate strategy for the control of information processing
Sloan Management Review
|January 6, 1983
Summary
Organizations achieve maximum benefits when information technology (IT) aligns with business strategy. This article presents a framework for integrating IT with strategy formulation for better management control.
Area of Science:
- Information Systems
- Business Strategy
- Organizational Management
Background:
- Information processing systems are widely adopted but often operate independently of organizational strategy.
- A disconnect exists between information technology (IT) implementation and strategic business goals.
Purpose of the Study:
- To argue for the strategic integration of information technology within organizations.
- To provide a framework for aligning IT with strategy formulation and management control.
Main Methods:
- Conceptual analysis of the relationship between IT and business strategy.
- Presentation of case examples illustrating successful IT-strategy integration.
- Development of a management framework for IT direction and control.
Main Results:
- Greatest organizational benefits are realized when IT is merged with strategy formulation.
- Independent IT systems yield suboptimal results compared to integrated approaches.
- The proposed framework facilitates top management's role in IT governance.
Conclusions:
- Strategic alignment of information technology is crucial for maximizing organizational benefits.
- Effective management requires a framework for directing and controlling IT in line with business strategy.
- Integrating IT into strategy formulation enhances overall firm performance.