And reconfiguring the entire it infrastructure to effectively and efficiently support new business strategies does not get any easier (Walter 134).
The misalignment of business strategy and it strategy has been recognized as a major hindrance to the successful exploitation of competitive advantage in the financial services sector. (Watkins, 1992). Pressure on management to focus on both sides of the cost-income equation has become a priority item on the agenda for most CEOs and CIOs. Some observers have argued that business strategy has both an external view that determines the firm's position in the market and an internal view that determines how processes, people, and structures will perform. In this conceptualization, it strategy should have the same external and internal components, although it has traditionally focused only on the internal it infrastructure -- the processes, the applications, the hardware, the people, and the internal capabilities; however, external it strategy has become increasingly indispensable (Walter 134).
For example, if a retail bank's it strategy is to move aggressively in the area of Web-based distribution and marketing channels, the management must decide whether it wants to enter a strategic alliance with a technology firm or whether all those competencies should be kept internal. If a strategic alliance is the best option, management needs to decide with whom: a small company, a startup, a consulting firm, or perhaps one of the big software firms? These choices do not change the business strategy, but they can have a major impact on how that business strategy unfolds over time. In short, organizations need to assure that it goals and business goals are synchronized (Henderson and Venkatraman 32).
Once the degree of alignment between business strategy and it strategy has been assessed, it becomes apparent whether the existing it infrastructure can support a potential it merger integration. At this point, alignment with merger strategy comes into play. A great deal depends on whether the organizational transformation involves horizontal integration (the transaction is intended to increase the dimensions in the market), vertical integration (the objective is to add new products to the existing production chain), diversification (if there is a search for a broader portfolio of individual activities to generate cross-selling or reduce risk), or consolidation (if the objective is to achieve economies...
Alford reports that "for some, the earth moves when they discover that people in authority routinely lie and that those who work for them routinely cover up. Once one knows this, or rather once one feels this knowledge in one's bones, one lives in a new world. Some people remain aliens in the new world forever. Maybe they like it that way. Maybe they don't have a choice." (Alford,
Initially, Charlie's decision to radically change managing styles from that of his predecessor was a mistake. Generally, leadership changes already have a disruptive effect on the management team (McFarlin, 2006); therefore, radical changes should be avoided unless there are very specific and good reasons to depart from what worked previously, at least until the new leader has established their trust and confidence (Maxwell, 2007). In this case, Charlie was already
Researchers have an occasion to further organizational science and to make research practical by producing information that can impact changing organizational forms and circumstances. Pragmatically, academic researchers are not likely to get access to a company that is going through change unless the practitioners believe the research will be helpful (Gibson & Mohrman, 2001). There have been a number of calls to augment the significance and effectiveness of organizational science
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