<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The exponential development of information technology has presented many opportunities to organizations; however, it has also presented several challenges. A key challenge is how do organizations effectively use information technology and incorporate it into their strategies to make full use of its capabilities as an enabler. The fast-changing nature of information technology has resulted in little empirical evidence on how it influences organization strategy. The Strategic Alignment Model was a popular model created to assist organizations to align their information technology and their business strategy; however, the growth of technology may have made this model irrelevant in this age. Therefore, organizations need to determine what factors drive this alignment. Using hermeneutic phenomenology, 12 in-depth interviews were conducted within IBM South Africa to determine real-life drivers that help create this alignment. The themes derived from the interview texts reveal that consumers are becoming more empowered; therefore, organizations need to be more flexible in their business models and strategies. Furthermore, the integration of cross-functional roles in the organization at the management level allow for improved alignment between information technology and strategy as better integrated roles bring a combination of these two elements.</p></abstract>

The exponential development of information technology has presented many opportunities to organizations; however, it has also presented several challenges. A key challenge is how do organizations effectively use information technology and incorporate it into their strategies to make full use of its capabilities as an enabler. The fast-changing nature of information technology has resulted in little empirical evidence on how it influences organization strategy. The Strategic Alignment Model was a popular model created to assist organizations to align their information technology and their business strategy; however, the growth of technology may have made this model irrelevant in this age. Therefore, organizations need to determine what factors drive this alignment. Using hermeneutic phenomenology, 12 in-depth interviews were conducted within IBM South Africa to determine real-life drivers that help create this alignment. The themes derived from the interview texts reveal that consumers are becoming more empowered; therefore, organizations need to be more flexible in their business models and strategies. Furthermore, the integration of cross-functional roles in the organization at the management level allow for improved alignment between information technology and strategy as better integrated roles bring a combination of these two elements.

Influence of Information Technology on Organization Strategy

Foundations of Management

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Influence of Information Technology on Organization Strategy"}

The exponential development of information technology has presented many opportunities to organizations; however, it has also presented several challenges. A...

Influence of Information Technology on Organization Strategy

Published Online: Jun 01, 2017

Page range: 191 - 202

DOI: https://doi.org/10.1515/fman-2017-0015

Keywords
information technology, strategy, strategic alignment model, business models, digital, market disruption, phenomenology

© Faculty of Management, Warsaw University of Technology

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Influence of Information Technology on Organization Strategy

Published Online: Jun 01, 2017

Page range: 191 - 202

DOI: https://doi.org/10.1515/fman-2017-0015

Keywordsinformation technology, strategy, strategic alignment model, business models, digital, market disruption, phenomenology

© Faculty of Management, Warsaw University of Technology

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
information technology, strategy, strategic alignment model, business models, digital, market disruption, phenomenology