Continuous strategic alignment: Exploiting information technology capabilities for competitive success

There is widespread acceptance that information technology (IT) and information systems (IS) have evolved from a traditional administrative, back-office support orientation towards a more strategic, central role within organizations. In this paper, N. Venkatraman, John Henderson and Scott Oldach discuss analytical and administrative approaches for conceptualizing and managing the emerging nexus between strategic management and information technology. They discuss the analytical approach through their Strategic Alignment Model — defined in terms of four basic domains of strategic choice: business strategy, information technology strategy; organization infrastructure and processes, and information technology infrastructure and processes. Subsequently, the administrative approach for achieving strategic alignment is discussed in terms of a set of alignment mechanisms: governance process, technology capabilities, human resource capabilities and value management. The power of this two-pronged model is highlighted through illustrations from the authors' research and professional experience.