Influence of Information Technology on Organization Strategy

The exponential development of information technology has presented many opportunities to organizations; however, it has also presented several challenges. A key challenge is how do organizations effectively use information technology and incorporate it into their strategies to make full use of its...

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Main Authors: Sibanda Mabutho, Ramrathan Durrel
Format: Article
Language:English
Published: Sciendo 2017-02-01
Series:Foundations of Management
Subjects:
Online Access:https://doi.org/10.1515/fman-2017-0015
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author Sibanda Mabutho
Ramrathan Durrel
author_facet Sibanda Mabutho
Ramrathan Durrel
author_sort Sibanda Mabutho
collection DOAJ
description The exponential development of information technology has presented many opportunities to organizations; however, it has also presented several challenges. A key challenge is how do organizations effectively use information technology and incorporate it into their strategies to make full use of its capabilities as an enabler. The fast-changing nature of information technology has resulted in little empirical evidence on how it influences organization strategy. The Strategic Alignment Model was a popular model created to assist organizations to align their information technology and their business strategy; however, the growth of technology may have made this model irrelevant in this age. Therefore, organizations need to determine what factors drive this alignment. Using hermeneutic phenomenology, 12 in-depth interviews were conducted within IBM South Africa to determine real-life drivers that help create this alignment. The themes derived from the interview texts reveal that consumers are becoming more empowered; therefore, organizations need to be more flexible in their business models and strategies. Furthermore, the integration of cross-functional roles in the organization at the management level allow for improved alignment between information technology and strategy as better integrated roles bring a combination of these two elements.
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spelling doaj.art-34ed16c726d045da89825fe2b21119dc2022-12-21T22:37:04ZengSciendoFoundations of Management2300-56612017-02-019119120210.1515/fman-2017-0015fman-2017-0015Influence of Information Technology on Organization StrategySibanda Mabutho0Ramrathan Durrel1School of Accounting, Economics & Finance University of KwaZulu-Natal Westville Campus, DurbanSouth AfricaSchool of Accounting, Economics & Finance University of KwaZulu-Natal Westville Campus, DurbanSouth AfricaThe exponential development of information technology has presented many opportunities to organizations; however, it has also presented several challenges. A key challenge is how do organizations effectively use information technology and incorporate it into their strategies to make full use of its capabilities as an enabler. The fast-changing nature of information technology has resulted in little empirical evidence on how it influences organization strategy. The Strategic Alignment Model was a popular model created to assist organizations to align their information technology and their business strategy; however, the growth of technology may have made this model irrelevant in this age. Therefore, organizations need to determine what factors drive this alignment. Using hermeneutic phenomenology, 12 in-depth interviews were conducted within IBM South Africa to determine real-life drivers that help create this alignment. The themes derived from the interview texts reveal that consumers are becoming more empowered; therefore, organizations need to be more flexible in their business models and strategies. Furthermore, the integration of cross-functional roles in the organization at the management level allow for improved alignment between information technology and strategy as better integrated roles bring a combination of these two elements.https://doi.org/10.1515/fman-2017-0015information technologystrategystrategic alignment modelbusiness modelsdigitalmarket disruptionphenomenology
spellingShingle Sibanda Mabutho
Ramrathan Durrel
Influence of Information Technology on Organization Strategy
Foundations of Management
information technology
strategy
strategic alignment model
business models
digital
market disruption
phenomenology
title Influence of Information Technology on Organization Strategy
title_full Influence of Information Technology on Organization Strategy
title_fullStr Influence of Information Technology on Organization Strategy
title_full_unstemmed Influence of Information Technology on Organization Strategy
title_short Influence of Information Technology on Organization Strategy
title_sort influence of information technology on organization strategy
topic information technology
strategy
strategic alignment model
business models
digital
market disruption
phenomenology
url https://doi.org/10.1515/fman-2017-0015
work_keys_str_mv AT sibandamabutho influenceofinformationtechnologyonorganizationstrategy
AT ramrathandurrel influenceofinformationtechnologyonorganizationstrategy