IT Performance Management

6.2: Strategy and Strategic Alignment

6.2 Strategy and Strategic Alignment

There are a lot of good publications on strategy and strategic alignment. Only some essentials that we think are vital for IT performance management will be covered here. Our approach is based on four major lines of thinking:

Outside-in strategy influences on the IT portfolio:

  • Ansoff (1977) and the related Boston Consulting Group thinking on corporate strategy , portfolio management and growth/share matrix (Hedley, 1977).

  • Porter (1980) on strategy , five forces model , value creation web .

Inside-out strategy influences on the IT portfolio:

  • Treacy and Wiersema (1995) on the discipline of market leaders .

  • Boynton, Victor and Pine (1993) on dynamic stability .

6.2.1 Outside-in strategy influences

This first category deals with the way that the environment influences strategic choices with regard both to the business and to IT.

6.2.1.1 The business portfolio, value creation and the value chain

The origins for our thinking lie in publications in the 1970s and 1980s. In these publications the concepts of deliberate choices on product/market combinations (also called portfolio management ) were launched successfully.

The BCG growth/share matrix was the dominant framework for portfolio management.

The value-based approach originates from several publications of Michael Porter and has since then been the major school in business strategy. To put it simply: a company has to understand the environment and the forces in and from the environment to be able to make strategic choices on the business.

Recently we have become aware that access to the market by means of a deliberate choice of the...

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