Establishing business strategy with information technology

Abstract

For many companies the use of information technology starts with the purchase of hardware such as mainframes, PCs and networks. In these cases the use of IT is based on the opportunities of technology. These companies often find it hard to indicate to what extent the specific resources and systems contribute to their business and their market position. In such a case, IT is, above all, regarded as an item of expense. On the other hand more and more organizations have become aware of the possibilities offered by IT to achieve competitive advantage. This strategic use of IT requires, first of all, a distinct business strategy that indicates what the organization is aiming at in terms of customers, suppliers, competitors, shareholders and authorities, and what role IT is playing in all this. On the basis of the business strategy, the specific use of IT can be established, in terms of an architecture and an infrastructure. As a result, a company is able to indicate where and how IT supports the business and the market position. If IT is applied in this way, it will not only be an item of expense, but also a production factor which is integrated into the strategic planning of a company. Describes a method to solidify the business strategy and to shape the resulting architecture and infrastructure in such a way that IT can offer an active contribution. This method has been applied worldwide, many times, at leading medium‐sized to very large, profit and non‐profit organizations.

Citation

Klein Klouwenberg, M., Koo, W.J.D. and Alphons M. van Schaik, J. (1995), "Establishing business strategy with information technology", Information Management & Computer Security, Vol. 3 No. 5, pp. 8-20. https://doi.org/10.1108/09685229510104945