Topic > The importance of aligning IT strategy and…

Strategic alignment maturity concerns the ability of organizations to adapt their IT and business strategies harmoniously. This alignment evolves into a relationship where the IT function and other business functions adapt their strategies together. Early research on the topic has shown that organizations exhibiting a high level of alignment maturity appear to be more capable of executing strategy as critical enablers of strategic alignment such as effective partnerships, communications and governance manifest through relationships and business practices -IT. This alignment between the organization's IT strategy and business strategy has been a fundamental principle that has been advocated for more than a decade. Within the strategic alignment maturity model, there are five conceptual levels;1. Initial/ad hoc process: business and IT not aligned or harmonized2. Committed Process: The organization is committed to alignment3. Established focused process: Maturity of strategic alignment established and focused on business objectives4. Improved/managed process: strengthen the concept of IT as a “value center”5. Optimized process: integrated and co-adaptive business and IT strategic planning As the company grows and the harmony between IT strategy and business strategy increases, it rises to the conceptual levels of the model. As the level of strategic alignment model increases, alignment and convergence with IT and business becomes more optimized. The alignment model suggests that IT strategies should derive from and shape business strategies in a dynamic environment. To decide which of the levels the organization fits into, there are levels of criteria that help in evaluating...... middle of paper... and flexibility while maintaining the competitive advantage in each individual office. In conclusion, classifying Metalco into one level of the strategic alignment maturity model can present difficulties as not all classification criteria are simple. However, generalizing the strategic alignment criteria allows Metalco to adapt to the four levels of the maturity model. By leveraging enterprise-wide IT resources and focusing application systems on improving business processes to achieve a sustainable competitive advantage, Metalco generally meets these qualifications. By learning from their failures, they were also able to migrate and grow from a decentralized organizational structure to a more suitable centralized, federated structure. While this move was reactive, it still allowed them to be successful in the long term.