Abstract
M.Comm.
In the current economy, leveraging information technology (“IT”) is of vital importance to gain a sustainable competitive advantage. To accomplish this, companies must ensure the alignment of IT with business strategy.
The fundamental goal of alignment should be for IT capabilities to support, enable, and, where appropriate, lead business strategy. Such alignment will maximize the effective use and value of IT in a strategic context.
The alignment of IT and business strategy is not easily achieved and has always presented IT and business executives with numerous problems. One of many challenges facing small businesses is that IT strategy appears to take a parallel course to business strategy, maintaining a common direction with business strategy but at a distance. The objective of this research is to identify the impact of this separation of strategy, and understand how to enable enhanced alignment of IT and business strategy.
The research scope focuses on the alignment of IT and business strategy in small and medium enterprises (SMEs). The Strategic Alignment Model will be used to analyse IT and business strategy alignment. The value that IT contributes to the organisation will be analysed in terms of three dimensions: systems, users and the wider business. The research will seek to establish whether a relationship exists between strategic alignment and the value of IT to the organisation.
Data has been collected through structured interviews conducted with management executives from various SMEs. A concise introduction with each participant ensured a common understanding of key terms and concepts. Questionnaires were also mailed to willing participants where personal interviews were not possible.
The findings of this study are expected to assist the alignment of IT and business strategy in SMEs in South Africa resulting in greater realisation of IT value and benefits.