Over the last decade, the impact of information technology on our organizations has increased but its expected value has not been achieved due to lack of alignment between the business and the its strategies. To achieve the value, a fundamental change in the managerial thinking about the role of information technology and the understanding of I/T components and its role in enhancing business strategy decisions are required. Further, I/T strategy should be articulated in a manner that it is able to address all the external and internal domains. For instance, the domains need to be aligned and integrated to business. Finally, management may fail due to challenges such as the failure to differentiate the strategic alignment from the traditional linkage and lack of understanding of the appropriate strategy choices that binds I/S infrastructure and business strategy. This article emphasizes that clear understanding of the appropriate strategies is the main key to achieving the expected value of information technology.
When strategic planning immerged, It was embraced as the best way of implementing strategies of enhancing the competitiveness of the business units. Unfortunately, most people are not able to differentiate between strategic thinking and planning which makes planning not to work out well. For instance, they fail to contribute towards strategy making process and specifying the appropriate steps that are needed to carry out specific visions. In strategic planning involves prediction formalization fallacies. To fully exploit the planning strategies, they need to be recognized by the managers and then broadened on their effect. For example, planners should discover new ways of perceiving or doing things such as identifying the new markets and understanding their implied products. The right hand planners carry out analytic studies to ensure consideration of the appropriate information and scrutinize the strategies that are intended for implementation. On the other hand, the left handed planner thinks creatively and seeks to open up for the process of making.
The failure or success of an organization is the strategy’s central question that has preoccupied the strategy field for a long time. The theory of the firm and an associated theory of strategy enhance the understanding on why the firms succeed. The determinants of firm’s success include development and implementation of consistent goals and functional policies that defines the firm’s market position, alignment of the firm’s weaknesses and strengths with the external threats and opportunities and the firm’s concentration on the creation and exploitation of distinctive competencies. The challenges of theory of strategy include chain of causality, empirical testing and time horizon. The theory of strategy links the environmental circumstances and firm’s behavior to market outcomes and it explains the firm’s competitive success. Further, the firm’s success or failure of the firm is manifested in its industrial structure, relative position, drivers and activities. These factors determine the competitive advantage of the firm in the market.