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Myki Case Study Strategic Alignment

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First let us consider the strategic alignment attributes. It is based on two factors strategic fit and the functional integration. First factor of strategic fit considers the external and internal arenas. External domain considers product market offerings and distinctive features. Internal domain is related with the administrative structure and critical business process as well as development and acquisition of human resources. There are three set of choices to be considered such as information technology scope, systematic competencies and IT governance. Internal I/S arena considers architecture of information system, processes and skills (Henderson, & Venkatraman, 1993).

For integration, there is need to align the internal and external domains. There is also a need for functional integration. IT strategy must be linked with the business strategy. There are four dominant perspectives for alignment such as strategy execution, technological transformation, competitive potential and service. These four perspectives should be considered for IT alignment with business (Henderson, & Venkatraman, 1993). …show more content…

There are several reasons that illustrate this. As it is revealed that there is need to have competent people to carry out the project, in the case of Myki, it is found that there were not sufficient skills among employees to handle the IT project. There was no detailed information about the environment of transport ticketing. Therefore the orientation was faulty and led to the unproven IT architecture and this was ratified by selection of untested vendor. There were various kinds of complexities that took place as the TTA who was the responsible authority for carrying out task of project. Selected vendor shown mistrust to TTA and TTA had a negotiation that was based on outcome based contract was also inadequate to Myki

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By revamping our perception and alignment of IT, we can change the “traditional view of IT as an expense rather than a revenue generator” (Luftman & Brier, 1999) (as cited, Danielle Lohmann, Discussion 1, 11:44 PM). As you mentioned, IT alignment is simply the confluence of organizational purpose and technology within the enterprise (John Nicolay, Discussion 1, 3:03 PM). With the integration of IT, it would seem like it would be a natural progression from one stage to the next, but changes without a strategic plan will fall short of expectation. In Discussion 1, Laxamana details the six types of enabler and inhibitors to alignment. Of the twelve total items, six directly pertains to the involvement of senior executives and/ or IT management and leadership.

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Besides the issue mentioned above, the team from the airline were not able to build a relationship with outsourced suppliers. Finding a solution to the issues in pursuing multiple vendor sourcing strategies, the airline centralized IT department. This did not end there because the procedure of collecting information on IT needs and passing to IT for implementation was done in the same way for both local and spanned different branches IT requirements. This has caused the IT to work slowly in implementation and they were unable to respond according to the real business needs that were collected by the business

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