This paper explores the issue of strategic alignment and enterprise systems (ES) implementation from the point of view of one organization involved in deploying an enterprise resource planning system globally. Two questions motivated this research. First, given that strategic information systems (IS) alignment is viewed as essential to organizational success in deriving value from information technology (IT) investments, what is the experience of organizations in practice in aligning their IT strategies with their business strategies? Second, what is the impact of global ES deployments on strategic IS alignment? Based on an in-depth case study of one organization's experience, the research shows that achieving alignment is still important yet difficult to attain. The pressure for alignment may be even more intense with the deployment of global enterprise-wide systems. The study provides additional empirical support for the strategic IS alignment construct and goes further to suggest that deploying an ES does not by itself create integrated and seamless operating environments. In addition, such an outcome requires significant organizational change at all levels.
Get full access to this article
View all access options for this article.
References
1.
AliM.K. (2000). Issues in implementing enterprise resource planning (ERP): a management perspective. MMS research project, School of Business, Carleton University, Ottowa.
2.
BenbasatI., GoldsteinD., and MeadM. (1987). The case research strategy in studies of information systems. MIS Quarterly, 11(3), 369–86.
3.
BhattacherjeeA. (2000). Beginning SAP R/3 implementation at Geneva Pharmaceuticals. Communications of the AIS, 4, Article 2, 1–39.
4.
BoarB. (1994). Practical Steps for Aligning Information Technology with Business Strategies: How to Achieve Competitive Advantage (John Wiley & Sons, New York).
5.
BrancheauJ.C., and WetherbeJ.C. (1987). Key issues in information systems management. MIS Quarterly, 11(1), 23–45.
6.
BrancheauJ.C., JanzB.D., and WetherbeJ.C. (1996). Key issues in information systems management: 1994–95 SIM Delphi results. MIS Quarterly, 20(2), 225–42.
7.
BrownC.V. (1999). Advantage 2000 at Owens Corning. In Managing Information Technology: What Managers Need to Know, MartinE.W., BrownC.V., DeHayesD.W., HofferJ.A., and PerkinsW.C. (eds) (Prentice-Hall, Upper Saddle River, NJ), pp. 640–58.
8.
ChanY.E. (2002). Why haven't we mastered alignment: the importance of the informal organization structure. MIS Quarterly Executive, 1(2), 97–112.
9.
ChanY.E., HuffS.L., BarclayD.W., and CopelandD.G. (1997). Business strategy orientation, information systems orientation and strategic alignment. Information Systems Research, 8(2), 125–50.
10.
ClarkC.E., CavanaughN.C., BrownC.V., and Samba-murthyV. (1997). Building change-readiness capabilities in the IS organization: insights from the Bell Atlantic experience. MIS Quarterly, 21(4), 425–55.
11.
CliffeS. (1999). Briefings from the editors. Harvard Business Review, 77(1), 16–17.
12.
CollinsR., and KirschL. (2000). Crossing Boundaries: The Deployment of Global IT Solutions (Pinnaflex Educational Resources, Inc., Cincinati)
13.
CrossJ. (1995). IT outsourcing: British Petroleum's competitive approach. Harvard Business Review, 73(3), 95–102.
14.
CrossJ., EarlM.J., and SamplerJ.L. (1997). Transformation of the IT function at British Petroleum. MIS Quarterly, 21(4), 401–23.
15.
DavenportT.H. (1998). Putting the enterprise into the enterprise system. Harvard Business Review, 76(4), 121–31.
16.
DavenportT. (2000). Mission Critical: Realizing the Potential of Enterprise Systems (Harvard Business School Press, Boston).
17.
GallupeR.B., and TanF.B. (1999). A research manifesto for global information. Management, Journal of Global Information Management, 7(3), 5–18.
18.
GatesW.H. (1999). Business @ the Speed of Thought: Using a Digital Nervous System (Warner Books, New York).
19.
HendersonJ.C., and VenkatramanN. (1991). Understanding strategic alignment. Business Quarterly, 55(3), 8–14.
20.
HendersonJ.C., and VenkatramanN. (1993). Strategic alignment: leveraging information technology for transforming organizations. IBM Systems Journal, 31(1), 4–16.
21.
HendersonJ.C., VenkatramanN., and OldachS. (1996). Aligning business and IT strategies. In Competing in the Information Age: Strategic Alignment in Practice, LuftmanJ. (ed.) (Oxford University Press, New York), pp. 21–42.
22.
HirschheimR., and SabherwalR. (2001). Detours in the path to strategic information systems alignment. California Management Review, 44(1), 87–108.
23.
HittL.M., and BrynjolfssonE. (1997). Information technology and internal firm organization: an exploratory analysis. Journal of Management Information Systems, 14(2), 81–101.
24.
HittM.A., KeatsB.W., and DeMarieS.M. (1998). Navigating in the new competitive landscape: building strategic flexibility and competitive advantage in the 21st century. Academy of Management Executive, 12(4), 22–42.
25.
KalakotaR., and RobinsonM. (1999). e-Business: Roadmap for Success (Addison-Wesley, Reading, MA).
26.
LacityM.C., and WillcocksL.P. (2001). Global Information Technology Outsourcing: In Search of Business Advantage (John Wiley & Sons, Chichester).
27.
LeeA.S. (1989). A scientific methodology for MIS case studies. MIS Quarterly, 13(1), 33–50.
28.
LuftmanJ.N. (1996). Applying the strategic alignment model. In Competing in the Information Age: Strategic Alignment in Practice, LuftmanJ. (ed.) (Oxford University Press, New York), pp. 43–69.
29.
LuftmanJ.N., and OldachS.H. (1996). Introduction. In Competing in the Information Age: Strategic Alignment in Practice, LuftmanJ. (ed.) (Oxford University Press, New York) pp. 3–18.
30.
McNurlinB.C., and SpragueR.H. (2002). Information Systems Management in Practice (Prentice-Hall, Upper Saddle River, NJ).
31.
MarkusM.L. (2000). Conceptual challenges in contemporary IS research. Journal of Global Information Management, 8(3), 42–6.
32.
MarkusM.L., and KeilM. (1994). If we build it, they will come: designing information systems that people want to use. Sloan Management Review, 35(4), 11–25.
33.
MarkusM.L., and TanisC. (2000). The enterprise system experience: from adoption to success. In Framing the Domains of IT Management: Projecting the Future Through the Past, ZmudR.W. (ed.) (Pinaflex Educational Resources, Inc., Cincinati), pp. 173–207.
34.
MarkusM.L., AxlineS., PetrieD., and TanisC. (2000). Learning from adopters’ experiences with ERP: problems encountered and success achieved. Journal of Information Technology, 15, 245–65.
35.
Metalco (1998). Metalco Facts.
36.
MilesM.B., and HubermanA.M. (1994). Qualitative Data Analysis (Sage Publications, Thousand Oaks, CA).
37.
ParkerM.M. (1996). Strategic Transformation and Information Technology (Prentice-Hall, Upper Saddle River, NJ).
38.
PhillipsL.W. (1981). Assessing measurement error in key informant reports: a methodological note on organizational analysis in marketing. Journal of Marketing, 18, 395–415.
39.
ReichB.H., and BenbasatI. (2000). Factors that influence the social dimension of alignment between business and information technology objectives. MIS Quarterly, 24(1), 81–114.
40.
RockartJ.F., EarlM.J., and RossJ.W. (1996). Eight imperatives for the new IT organization. Sloan Management Review, 38(1), 43–55.
41.
RossJ. (1999). Dow Corning Corporation: business processes and information technology. Journal of Information Technology, 14, 253–66.
42.
RossJ.W., and FeenyD.F. (2000). The evolving role of the CIO. In Framing the Domains of IT Management: Projecting the Future Through the Past, ZmudR.W. (ed.) (Pinaflex Educational Resources, Inc., Cincinati), pp. 385–402.
43.
SabherwalR., and ChanY.E. (2001). Alignment between business and IS strategies: a study of prospectors, analyzers, and defenders. Information Systems Research, 12(1), 11–33.
44.
SchneiderP. (2000). Another trip to hell: lessons learned. CIO Magazine, 15 February.
45.
ScottJ.E., and VesseyI. (2002). Managing the risks of enterprise systems implementations. Communications of the ACM, 45(4), 74–81.
46.
SmithJ.F. (1999). Blue skies, no risks: concurrent engineering approach to ERP implementation avoids pitfalls, speeds ROI. Manufacturing Systems, 17(4), 81–6.
StedmanC. (2000). ERP problems put the brakes on Volkswagen parts shipment. ComputerWorld, 3 January.
49.
Van der ZeeJ.T., and De JongB. (1999). Alignment is not enough: integrating business and information technology management with the balanced business scorecard. Journal of Management Information Systems, 16(2), 137–56.
50.
VenkatramanN. (1997). Beyond IT outsourcing: managing IT resources as a value center. Sloan Management Review, 38(3), 51–64.
51.
VictorB., PineB.J., and BoyntonA.C. (1996). Aligning IT with new competitive strategies. In Competing in the Information Age: Strategic Alignment in Practice, LuftmanJ. (ed.) (Oxford University Press, New York), pp. 73–96.
