Question

Explain the intricate association between business strategies / goals and Information Technology initiatives. Be sure to address which is better between business driven or Information Technology driven.

Answer 1

IT strategy (information technology strategy) is a comprehensive plan that outlines how technology should be used to meet IT and business goals. An IT strategy, also called a technology strategy or IT/technology strategic plan, is a written document that details the multiple factors that affect the organization's investment in and use of technology.

It should cover all facets of technology management, including cost management, human capital management, hardware and software management, vendor management and risk management.

Basics of an IT strategy
A strong IT strategy provides a blueprint of how technology supports and shapes the organization's overall business strategy. Its strategic goals should mirror business projects (aka business alignment) and take into account the needs of key stakeholders including employees, customers and business partners.

The strategy should offer a look at the organization's current technology posture and provide an idea of where IT should head over the next three to five years.

There are different models that help executives construct an IT strategy, yet most contain certain key elements including:

A high-level overview of the IT department that covers its mission, core values, objectives and approaches to accomplishing its goals.
Current budgets and spending forecasts for a multiyear timeline.
An outline of current and future IT projects and initiatives with timelines and milestones.
A catalog of existing enterprise architecture; IT department capabilities and capacities; and future needs and requirements with details about infrastructure, staffing and other necessary resources.
An analysis of IT's strengths and weaknesses.
A list of the internal and external forces (such as market and industry trends) that shape current technology requirements and innovations as well as the future forces expected to shape IT.
A prediction of the potential opportunities and vulnerabilities that will necessitate technology responses to best position the organization for success.

The importance of an IT strategy has been amplified over the past few years as organizations focus on digital transformation and thriving in the digital age. Technology is essential for creating new business models, products and services; enhancing customer service as well as customer experiences; increasing sales; enabling workers and improving productivity; and supporting interactions with vendors and other business partners.


Business strategy can be understood as the course of action or set of decisions which assist the entrepreneurs in achieving specific business objectives.
 
It is nothing but a master plan that the management of a company implements to secure a competitive position in the market, carry on its operations, please customers and achieve the desired ends of the business.

In business, it is the long-range sketch of the desired image, direction and destination of the organisation. It is a scheme of corporate intent and action, which is carefully planned and flexibly designed with the purpose of:

Achieving effectiveness,
Perceiving and utilising opportunities,
Mobilising resources,
Securing an advantageous position,
Meeting challenges and threats,
Directing efforts and behaviour and
Gaining command over the situation.
A business strategy is a set of competitive moves and actions that a business uses to attract customers, compete successfully, strengthening performance, and achieve organisational goals. It outlines how business should be carried out to reach the desired ends.

Business strategy equips the top management with an integrated framework, to discover, analyse and exploit beneficial opportunities, to sense and meet potential threats, to make optimum use of resources and strengths, to counterbalance weakness.

Hence, IT strategy is better than Business Strategy as One way to increase efficiency and effectiveness is the use of information technology.