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Critical Success Factors of IT Strategy
Abstract
As discussed in Chapter III, a successful IT strategy must align with the business, fully at every stage of the end-to-end strategic management process, from strategy setting and planning to detailed program execution and delivery. Most publications (Luftman & McLean, 2004) on business–IT alignment to date have been centered on one dimension of the alignment issues, for example, on strategic planning or organizational issues. In this chapter, we discuss the critical success factors of IT strategy holistically across four dimensions of the strategic management process from strategy formulation to planning to execution and to value delivery monitoring end-to-end because IT leaders have to manage alignment in all four dimensions in order to maximize the strategic value of information technology deployment. The most basic requirement for the success is that IT must be regarded as being part of the business, devoid of the “us” vs. “them” chasm (separating IT from the business) found in most traditional organizations where IT is viewed as a subservient role performing basically a “back office” function. This critical organizational culture requirement of “IT and business acting as one” is founded on the rigor and discipline of IT governance. IT governance is integral to corporate governance, subject to periodic governance compliance audit by is chapter will briefly describe this function as it applies to the end-to-end process of IT strategy. A more complete treatment will be covered in Chapter IX.
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