Henderson's Strategic Alignment Model

Introduction

Several authors have recognised that there of frequently inadequate alignment between the business and it strategy and also the business and IT infrastructure (Henderson and Vankatraman 1993; Y. E. Chan 2002), however, the practices, processes, and collaborations concerned in the planning and decision making regarding IT and IS need to be given attention and significance by the managers of a firm (Ward 2016). Managers are required to give this consideration throughout the entire organisation and not just in the IT department (Peppard and Ward 2004).

Strategic Alignment model

Whilst the business strategy positions the complete path for the firm, the IT strategy describes which IT systems, and architectures are required so as to

The second component is working towards aligning the strategies of IT with those of the firm, which is known as IT strategic alignment (Turban and Volonino 2012).

Henderson and Venkatraman (1993) presented their Strategic Alignment Model (SAM) which identifies the four areas of “business strategy, IT strategy, organisational infrastructure and IT infrastructure”. The concept of the SAM is that firms are supposed to continually pursue alignment with these four areas, paying specific consideration to the fit with strategy as well as the functional integration (Henderson and Venkatraman, 1993), which is illustrated in the diagram

These roles need to be owned by the manager, and separation of the management of IT and associating new technology as being solely the role of IT will not gain the anticipated benefits (Ward 2016)

Managers will need to display a responsibility of developing operational business goals, defining the strategies for implementation and communicating those goals right through the firm (Basili et al. 2010). In turn, managers also will need to be capable of translating their goals to the rest of the firm, so as to carry out projects, measure the effectiveness and identify the accomplishment of their business goals (Basili et al. 2010).

Some effort in building key relationships with IT is important when both gaining understanding of the technology, but also understanding IT, these relationships will help with improved communication and understanding for IS also when aligning their strategies to that of the business (Chan