OPERATIONAL Alignment

Businesses aim to enable strategy through the proper use of IT to support business processes. The Operational Alignment Matrix allows a consultant to test and position a business within this framework. The axes of the matrix are first, degree of business strategy and IT alignment, and second use of Technology. The first axis defines the degree to which a business has established a strategy and the level of alignment expected to deliver it. The second axis determines how businesses will make use of technology to enable business processes so that they can deliver their products and services.

To give a bigger picture, a business may see a particular technology as being a fundamental differentiator of its products and services in a marketplace. There are 4 situations:

1. Degree of business strategy and IT alignement:HIGH and Use of Technology:LOW (A):It means the business is forward looking and has a clear view of where it is going and why. The technology is enabling the strategy, but probably not driving business change and process improvement

2. Degree of business strategy and IT alignement:LOW and Use of Technology:LOW(C):As long as the business recognizes that it is here and why, then there is no problem, although clearly there will be many opportunities to improve on both strategy and enabling technologies. The Scorecard model will be of particular help here, to develop and focus a business strategy and provide the drivers as measures to develop an IT strategy in support of the vision.

Keep reading for the next 2 situations.....