The relationship between business strategy and IT strategy is an inevitable construct that must exist for organizations to succeed in their respective industries of specialization. One major reason for developing this relationship is to ensure that the business achieves its overall objectives using information driven strategic processes. It is through information technology that businesses can gather market data, analyze it, and make well-informed decisions whose outcome is increased competitiveness, differentiation, and survival despite turbulence in the operating environment. Over the years, information technology has proven to be an effective management tool that transforms businesses from the communication and coordinative perspectives.
With information technology, businesses can communicate with customers, collaborate professionals on important projects, and development of innovative infrastructures through efficient information sharing. This is illustrative that business strategy and IT strategy are mutually inclusive since their combination results into higher levels of success (Grant, 2010). Organizations like Microsoft, national oil, and Apple Inc. are classic examples of this relationship where they have invested in elaborate information infrastructures to support their decision frameworks, research and development, communication, and market development. These are information driven companies and their unified strategic approaches have proven that relation between IT and business strategy must coexist.
Value proposition is provision of elements that deliver tangible business outcomes through utilization of particular products or services. Procuring a new presentation software can add value to the business in various ways related to information processing and delivery. With the new software, the business will have the capacity to achieve measurable objectives of information flow throughout the hierarchy. It means that employees can make their reports with ease, present innovative ideas, and can be used for continuous training sessions. All these activities are essential for business growth and development hence the need to adopt an application that promotes information delivery and knowledge propagation.
Since organizations are always reluctant on shifting among different vendors, this presentation software is developed by a reputable company offering long term service agreements. The application is being used by different organizations since its development years ago. Having stayed in the market for years through long term service agreements has made this software viable for procurement since there will be no need for moving from one vendor to another. Also, it is possible to assess the value added by the software through reporting, rate of information flow, and data presentation concepts that did not exist before proving its value.
According to Napier, Judd, & Rivers (2014), information technology projects are intricate undertakings that can either deliver value to the organization or generate losses due to their eventual failures. As an IT manager, ensuring that projects deliver value begins by ensuring optimal allocation of resources to maximize deliverables. Each sub process is optimized to ensure its resource consumption is minimal but the outcomes are of high quality. Additionally, projects add value when their objectives are aligned with organizational goals. Since organizations cannot afford fund all projects, managers must choose projects which are aligned with core organizational goals to improve on innovation, competitiveness, and differentiation.
Projects should also be focused on striking the balance between performance, cost, and time constraints in order to generate the best of results. This balance is an essential role of the project manager since they ensure that organizations identify opportunities and exploit them through controlled change process. For instance, a project manager can lead a team to develop new products to exploit emergent opportunities; however, this cannot be of any value if the project deliverables are not made within specific timelines, budgets, and scope. So, value addition is achieved through balancing resources and constraints to create deliverables that are aligned to specific organizational goals.
Businesses have been forced by situational conditions to become dynamic and one of the ways is to ensure that information technology is closely linked to core organizational strategies. Over the years, businesses have realized that this linkage is essential for development, growth, and decision support in every commercial aspect undertaken by respective businesses. This is the rationale for using different practices to ensure that information technology is not only linked to business strategy, but also used as an essential transformative tool for organizational change.
One applicable practice is developing a clear demand side governance structure that follows portfolio management approach. Business managers need to make better decisions faster and formulate strategies that adopt to situational changes rapidly. Sufficing this need means that information technology structures must be transparent, accountable, and provider higher levels of business understanding. From the business strategy perspective, IT facilitates the process of making accurate, timely, and faster decisions; hence, the need to form foundations for weaving business and IT strategies together. As such, there is need for implementing the practice of adopting an IT portfolio management approach that outlines information technology initiatives relative to organizational goals.
In the book by Anzoategui, Comin, & Gertler (2016), every business is required to create the inevitable relation between IT and strategy since it determines its overall success. The practice of instituting proper governance processes that take portfolio management approaches is applicable in the current organization with relative ease. Resources are adequate and there is need to incorporate technology tools that influence information flow, decision making, and business capabilities amidst intense competition from rivals. In fact, business managers have the choice to integrate IT in their organizations and the best decision is to ensure that its strategy is linked to business goals.