Abstract

IT/business strategy alignment is still a crucial issue for managers worldwide; how to deal with environmentalchange has been considered to be the key challenge to strategy alignment. Uncertain and dynamically changingenvironments require organizations to maintain a high level of alignment with a high risk of IT investment. Tomaintain this alignment, organizations must learn how to make their management information systems (MISs)sufficiently flexible; therefore, previous studies suggest the importance of MIS flexibility. Nevertheless, thereare few studies that explore the practical method of MIS flexibility planning for IT/business strategy alignment.Therefore, Part 1 of this series discusses the meaning of MIS flexibility for this alignment, while Part 2 proposesa scheme to make MISs sufficiently flexible.The proposed concept of the penalty of change (POC), as a function of cost and time, could bridge the gapbetween IT and business strategies in practice. This paper presents a scheme for the strategic planning of MISflexibility by overhauling the IT infrastructure via future-oriented POC analysis. Using this procedure andmonitoring the degree of MIS flexibility and alignment in the long term would reduce risks and could transformthe corporate MIS into a useful tool to address environmental changes.

Highlights

  • Nowadays, an organization’s success depends heavily on information technology (IT) because many organizations rely on their management information systems (MISs)

  • This paper presents a scheme for the strategic planning of MIS flexibility by overhauling the IT infrastructure via future-oriented penalty of change (POC) analysis

  • We have explored the simplicity that should be built into MIS flexibility by a proper overhauling of the IT infrastructure

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Summary

Introduction

An organization’s success depends heavily on information technology (IT) because many organizations rely on their management information systems (MISs) Organizations, especially their MIS managers, struggle to bridge the huge gap between their business strategy and the IT being implemented to achieve maximumoutput from their MIS. This paper will explore the mechanism of IT/business strategy alignment and present a practical, strategic planning scheme for MISs whereby a future-oriented POC analysis is employed to overhaul the IT infrastructure.

Strategy Alignment for an Unpredictable Business Environment
MIS Flexibility as a Competitive Factor
MIS Flexibility in an Uncertain Business Environment
Effective SIS Planning
IT Infrastructure as the Source of MIS Flexibility
Relationship between MIS Flexibility and SIS Planning
Impact of MIS Flexibility on Strategy Alignment
Definitions of MIS Flexibility via POC
Probabilistic Definition of POC and MIS Flexibility
Need for Enhanced MIS Performance
Discussion
Conclusion

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