Strategic Alignment

I recently came across an interesting article about IT Strategy. Let me share it with you guys.
IT has evolved from its traditional back-office role towards a more strategic role. However there is a lack of any fundamental framework which can be used to understand the potential of IT. The inability to realize value from IT investments is partly due to the lack of alignment between the business and IT strategies of organizations.
The authors have come up with the ‘Strategic Alignment Model’ which is defined in terms of 4 fundamental domains of strategic choice: Business Strategy, IT Strategy, Organizational infrastructure & processes and IT infrastructure & processes.
The concept of strategic alignment is based on 2 building blocks – strategic fit & functional integration.
Strategic fit recognizes the need for any strategy to address both external and internal domains. There are 3 external components of IT strategy – IT scope, Systemic competencies & IT governance. Also, there are 3 internal components of IT strategy – IS architecture, IS processes & IS skills. Traditionally managers think of IT strategy in terms of the latter 3 components that reflect an internal orientation. As IT emerges as a critical enabler of business transformation it is imperative that firms also pay attention to the 3 external components of IT strategy.
Functional Integration considers the need to integrate IT strategy & business strategy. 2 types of integration – Strategic Integration & Operational Integration.
Strategic integration – Deals with the capability of IT to both shape & support business strategy.
Operational integration – Deals with the Organizational infrastructure & processes and IT infrastructure & processes.