Strategic Alignment Model (SAM)

BY:

ABHISHEK PACHISIA

MBA – IT (A)

What is SAM?

“Strategic Alignment between Business and IT occurs when IT is used dynamically to create and

exploit Business opportunities. It can be used then to transform business processes and also to create business dislocations in the market place.”

– Boar (1994)

• Framework Business & IT Strategy

• Venkatraman, Henderson and Oldach – 1993

• Analysing & Undestanding Strategic Alignment.

Assumptions

• Economic Performance Ability of Management

• Strategic fit is inherently dynamic

SAM - Domains

Strategic Fit and Functional Integration

• All Quadrants work as a whole unit

• Strategic Fit

• Determine Infrastructure of Business

• Functional Integration

• Information Technology

• Alignment of the Business

Perspectives of SAM

• Strategy Execution

• Technology Transformation

• Competitive Potential

• Service Level

Strategic Execution

Business strategy has been articulated and is driver of both organizational design and IS design

• Example: iGate

Technological Transformation

• Implementing business strategy through appropriate IT strategy and processes.

• Seeks to identify best IT competencies and corresponding IS structure

Competitive Potential

• Implementing new IT strategies to impact new products and services

• Example:

• Federal Express Corp

• Adaptation of business strategy via emerging IT capabilities.

Service Level

• Building world class IS service organization.

• Understanding of external dimensions of IT strategy with corresponding internal design of infrastructure and processes

• Seeks to identify best IT competencies and corresponding IS structure