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Information technology is more than a cost benefit and support function. It is an enabler of good business. Every enterprise needs an IT strategy, which recognizes and complements the interests of the organization.

A few years ago, information technology (IT) was perceived as a mere cost center and support function. Today, IT is a value enhancer for business enterprise and a key differentiator of service levels. Boardroom decisions now rely on technology for the successful implementation of business plans, and strategic restructuring of organizations.

In order to provide a formal structure to the IT function, it is imperative that organizations develop an IT strategy. A formal IT strategy defines the vision and objectives of the IT function and also streamlines it within a well-defined scheme of operations. Most importantly, it builds in the well-deserved recognition for IT as an important and integral function of the organization.

The need for business -IT strategic alignment

Even while organizations increasingly devote significant time and effort to develop their IT strategies, it is important that these are built in alignment with the overall business strategy. Unfortunately, this is not the case in a majority of the IT strategies that get formulated. For example, about two-thirds of the IT strategies developed in the retail industry are reportedly not in complete alignment with that of the corresponding business strategies (Source: CGEY Retail IT Research Report 2002). Even while the above statistics have been observed in the US, it could measure even more in the context of organizations in developing economies.

The implications of a lack of alignment are not too hard to see. High levels of opportunity losses, misplaced and redundant investments, operational inefficiencies and customer dissatisfaction are the common consequences of non-alignment of the IT-business strategy. For instance, should the business strategy demand a centralized operational model for the organization, the IT architecture cannot have a decentralized set-up, even if better technological and operational efficiencies suggest such a model. Technology for the sake of technology and not driven by business needs only results in opportunity losses and unnecessary expenses.

With the cost of non-alignment becoming dearer and organizations also recognizing technology as a value driver, the need to align the IT strategy with business strategy has become significant. And this alignment comes with its own benefits. As it can be observed in Figure-1, institutions that move from a low alignment to a higher alignment are characterized by higher maturity in structural and process-oriented practices. This is reflected in the strategic planning, organizational reporting, day-to-day operations and successful implementations of strategic initiatives of such organizations. While technology brings about efficiencies in operations, aligning it with business also enables this adaptation to be much more effective.

A growing number of leading organizations are consciously building strategic synergies between their business and IT strategies, and this mutually symbiotic relationship provides two critical advantages to such organizations.

Adaptability to Change

A well-aligned business and IT strategy facilitates better anticipation and higher levels of preparedness for technology-driven market changes, and gears organizations to capitalize on technological advances faster than their competitors. Furthermore, since business drivers are themselves propelled through technology in certain instances, this change becomes much easier to adapt to. For instance, a bank that has well-defined application architecture aligned with its business strategy and with the adaptability to plug in new applications, would have a big competitive edge to launch new products and innovative offerings over another bank, which does not have the same.

Structural Alignment

When IT strategy is in alignment with the business goals, IT initiatives that flow from the strategy also inherit such an alignment. The role of IT function then becomes that of a facilitator, while the ownership of IT environment is shifted towards business units, resulting in better structural alignment of IT and non-IT functions. With IT projects increasingly growing in size and value, it is but imperative that such an ownership of IT initiatives by business users is encouraged. This ensures success of large IT initiatives which have a direct bearing on the business strategy of today's leading organizations.


What we Believe?
We believe in continuously enhancing our strategic intent through the D-cube model

We believe that for getting success, you require right Direction.
Discovering innovative solutions.
After getting right direction and After discovering innovative solution.
leave upon the Destiny.
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