The Impact of IT-Business Strategic Alignment on The Transformation and Operations of Pre-Digital Businesses
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Francisco Massaro Mendes-da-Silva
Alberto Luiz Albertin
Abstract
Objective: this study aims to answer the following research question: How does IT-business strategic alignment (ITBSA) influence the sustaining or transformation of a pre-digital business? This objective was defined due to the critical importance of this topic for executives responsible for keeping such businesses adaptive and competitive in the face of the digital era’s opportunities and threats. Theoretical approach: the theoretical background of this article is formed by pre-digital and digital business models, IT-business strategic alignment, focusing on IT-enabled business support, IT-enabled business transformation, digital optimization, and digital transformation. Method: following the development of a research model and propositions,
a case study was conducted using semi-structured interviews with executives from a multinational industrial company. These interviews were transcribed, coded, and analyzed using a deductive data collection and analysis protocol, supported by NVivo software. Results: the presence of organizational silos and the absence of a digital strategy were identified as key issues that have impacted the transformation of the pre-digital business studied. These challenges were mapped not only through case study analysis but also by triangulating these findings with the existing literature. Conclusion: despite the integration of an emerging digital strategy into ITBSA, traditional practices can still be helpful to mitigate the identified issues of strategic misalignment and organizational silos. For instance, executives need to maintain a balanced focus on both intellectual and social alignments to ensure that IT, business, and digital strategies collectively enable the business operations and transformation.
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Mendes-da-Silva, F. M., & Albertin, A. L. (2024). The Impact of IT-Business Strategic Alignment on The Transformation and Operations of Pre-Digital Businesses. Journal of Contemporary Administration, 28(4), e240128. https://doi.org/10.1590/1982-7849rac2024240128.en
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Theoretical-empirical Articles
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References
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Luftman, J., & Kempaiah, R. (2007). An Update on Business-IT Alignment: A Line Has Been Drawn. MIS Quarterly Executive, 6(3), 165-177.
Mithas, S., Tafti, A., & Mitchell, W. (2013). How a Firm's Competitive Environment and Digital Strategic Posture Influence Digital Business Strategy. MIS Quarterly, 37(1), 511-536. https://www.jstor.org/stable/43825921
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Peppard, J., & Ward, J. (2004). Beyond strategic information systems: Towards an IS capability. The Journal of Strategic Information Systems, 13(2), 167-194.
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Tumbas, S., Berente, N., & vom Brocke, J. (2017). Three types of Chief Digital Officers and the reasons organizations adopt the role. MIS Quarterly Executive, 16(2), 121–134. https://www.researchgate.net/publication/317770186_Three_types_of_chief_digital_officers_and_the_reasons_organizations_adopt_the_role
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Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144.
vom Brocke, J., Schmid, A.M., Simons, A. and Safrudin, N. (2021), "IT-enabled organizational transformation: a structured literature review". Business Process Management Journal, 27(1), 204-229. https://www.emerald.com/insight/content/doi/10.1108/BPMJ-10-2019-0423/full/html
Wade, M., & Hulland, J. (2004). Review: The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research. MIS Quarterly, 23(1), 107-142. https://www.scirp.org/reference/referencespapers?referenceid=1741596
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Weill, P., & Ross, J. W. (2004). IT Governance: How Top Performers Manage IT Decision Rights for Superior Results. Harvard Business School Press.
Wessel, L., Baiyere, A., Ologeanu-Taddei, R., Cha, J. & and Blegind, J. T. (2021). Unpacking the Difference Between Digital Transformation and IT-Enabled Organizational Transformation. Journal of the Association for Information Systems, 22(1), 102-129. http://dx.doi.org/10.17705/1jais.00655
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Benbya, H., Leidner, D., & Preston, D. (2019). Research Curation on Information Systems Alignment, MIS Quarterly. https://www.misqresearchcurations.org/blog/2019/3/14/informationsystems-alignment.
Benbya, H., & McKelvey, B. (2006). Using Coevolutionary and Complexity Theories to Improve IS Alignment: A multi–Level Approach. Journal of Information Technology, 21(4), 284-298. http://dx.doi.org/10.1057/palgrave.jit.2000080
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. V. (2013). Digital business strategy: toward a next generation of insights. MIS Quarterly, 47(2), 471-482.
Boaden, R., & Lockett, G. (1991). Information technology, information systems and information management: definition and development. European Journal of Information Systems, 1(1), 23-32.
Bradley, J., Loucks, J., Macaulay, J., Noronha, A., & Wade, M. (2015). Digital Vortex: How Digital Disruption Is Redefining Industries. Global Center for Digital Business Transformation, IMD Business School.
Canhoto, A. I., Quinton, S., Pera, R., Molinillo, S., & Simkin, L. (2021). Digital strategy aligning in SMEs: A dynamic capabilities perspective. The Journal of Strategic Information Systems, 30(3), 101682. http://dx.doi.org/10.1016/j.jsis.2021.101682
Chanias, S., Myers, M. D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial services provider. Journal of Strategic Information Systems, 28(1), 17-33. https://doi.org/10.1016/j.jsis.2018.11.003
Coltman, T., Tallon, P., Sharma, R., & Queiroz, M. (2015). Strategic IT alignment: twenty-five years on. Journal of Information Technology, 30(2), 91-100. https://doi.org/10.1057/jit.2014.35
Dehning, B., & Stratopoulos, T. (2003). Determinants of a sustainable competitive advantage due to an IT-enabled strategy. The Journal of Strategic Information Systems, 12(1), 7-28. https://doi.org/10.1016/S0963-8687(02)00035-5
Deloitte. (2023). Unleashing value from digital transformation: Paths and pitfalls. https://www.deloitte.com/global/en/our-thinking/insights/topics/digital-transformation/digital-transformation-value-roi.l?id=us:2el:3dp:wsjspon:awa:WSJCMO:2024:WSJFY24.
El Sawy, O., & Pavlou, P. (2008). IT-Enabled Business Capabilities for Turbulent Environments. MIS Quarterly Executive, 7(3), 139-150. https://ssrn.com/abstract=2742325
Gartner. (2024). Gartner Forecasts Worldwide IT Spending to Grow 6.8% in 2024. https://www.gartner.com/en/newsroom/press-releases/01-17-2024-gartner-forecasts-worldwide-it-spending-to-grow-six-point-eight-percent-in-2024.
Gerow, J. E., Thatcher, J. B., & Grover, V. (2014a). Six types of IT-business strategic alignment: An investigation of the constructs and their measurement. European Journal of Information Systems, 24(5), 465-491. https://doi.org/10.1057/ejis.2014.6
Gerow, J. E., Thatcher, J. B., Grover, V., & Roth, P. L. (2014b). Looking toward the future of IT-business strategic alignment through the past: A meta-analysis. MIS Quarterly, 38(4), 1059-1085. https://www.jstor.org/stable/26627966
Haffke, I., Kalgovas, B., & Benlian, Alexander. (2017). Options for Transforming the IT Function Using Bimodal IT. MIS Quarterly Executive, 16(1), 101-120. https://www.jstor.org/stable/26627966
Hartani, N. H., Haron, H., Tajuddin., N. I. I. (2021). The impact of strategic alignment on the sustainable competitive advantages: Mediating role of IT implementation success and IT managerial resource. International Journal of eBusiness and eGovernment Studies, 13(1), 78-96.
Hartman, A., Sifonis, J. G., Sifonis, J. & Kador, J. (2000). Net Ready: Strategies for Success in the E-conomy. McGraw-Hill.
Henderson, J. C., & Venkatraman, N. (1993). Strategic Alignment: Leveraging Information Technology for transforming organizations. IBM Systems Journal, 32(1), 4-16. https://doi.org/10.1147/sj.382.0472
Hess, T.; Matt, C.; Benlian, A., & Wiesboeck, F. (2016). Options for formulating a digital transformation strategy. MIS Quartelly Executive, 15(2), 123-139.
Iden, J., Eikebrokk, T. R. (2013). Implementing IT Service Management: A systematic literature review. International Journal of Information Management, 33(3), 512-523 https://doi.org/10.1016/j.ijinfomgt.2013.01.004
Ismail, M. H., Khater, M., & Zaki, M. (2017). Digital business transformation and strategy: What do we know so far. Cambridge Service Alliance, 10(1), 1-35. http://dx.doi.org/10.13140/RG.2.2.36492.62086
Kane, G. C., Palmer, D.; Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, Not Technology, Drives Digital Transformation. MIT Sloan Management Review and Deloitte University Press. https://sloanreview.mit.edu/projects/strategy-drives-digital-transformation.
Kavadias, S., Ladas, K., & Loch, C. (2016). The transformative business model. Harvard Business Review, 94(10), 90-98.
Kohli, R., & Johnson, S. (2011). Digital transformation in latecomer industries: CIO and CEO leadership lessons from Encana Oil & Gas (USA) Inc. MIS Quarterly Executive, 10(4), 141-156. https://aisel.aisnet.org/misqe/vol10/iss4/3/
Liang, H., Wang, N., Xue, Y., & Ge, S. (2017). Unraveling the alignment paradox: How does business-IT alignment shape organizational agility? Information Systems Research, 28(4), 863-879. https://www.jstor.org/stable/26653095
Libert, B., & Beck, M. (2018). Companies Fail At Digital Transformation By Focusing On Digital Optimization. https://www.forbes.com/sites/barrylibert/2018/01/18/companies-fail-at-transformation-by-focusing-on-optimization/?sh=430907ac1efe
Luftman, J., & Brier, T. (1999). Achieving and sustaining business-IT alignment. California Management Review, 42(1), 109-122.
Luftman, J., & Kempaiah, R. (2007). An Update on Business-IT Alignment: A Line Has Been Drawn. MIS Quarterly Executive, 6(3), 165-177.
Mithas, S., Tafti, A., & Mitchell, W. (2013). How a Firm's Competitive Environment and Digital Strategic Posture Influence Digital Business Strategy. MIS Quarterly, 37(1), 511-536. https://www.jstor.org/stable/43825921
Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation Management: Reinventing Innovation Management Research in a Digital World. Management Information Systems Quarterly, 41(1), 223-238. https://eclass.aegean.gr/modules/document/file.php/TNEY202/digitalinnovationmisq%20copy.pdf
Newman, D. (2019). Digital Optimization Isn't Digital Transformation. https://www.forbes.com/sites/danielnewman/2019/06/18/digital-optimization-isnt-digital-transformation/?sh=6dbc79014741
O'Reilly, C. A., & Tushman, M. L. (2013). Organizational ambidexterity: Past, present, and future. Academy of Management Perspectives, 27(4), 324-338.
Őri, D., Szabó, Z. (2024). A systematic literature review on Business-IT misalignment research. Information Systems and e-Business Management, 21(4), 1-31.
Peppard, J., & Ward, J. (2004). Beyond strategic information systems: Towards an IS capability. The Journal of Strategic Information Systems, 13(2), 167-194.
Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-54.
Ponelis, S. R. (2015). Using Interpretive Qualitative Case Studies for Exploratory Research in Doctoral Studies: A Case of Information Systems Research in Small and Medium Enterprises. International Journal of Doctoral Studies, 10(1), 535-550.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64-88.
PwC Digital IQ Survey. (2022). How business leaders can raise their Digital IQ. https://www.pwc.com/us/en/tech-effect/cloud/digital-iq.html
Queiroz, M., Tallon, P. P., Sharma, R., & Coltman, T. (2018). The role of IT application orchestration capability in improving agility and performance. Journal of Strategic Information Systems, 27(1), 4-21. https://doi.org/10.1016/j.jsis.2017.10.002
Sambamurthy, V., & Zmud, R. W. (2017). Guiding the Digital Transformation of Organizations. Legerity Digital Press.
Schallmo, D. R. A., Williams, C. A., & Boardman, L. (2017). Digital transformation of business models—Best practice, enablers, and roadmap. International Journal of Innovation Management, 21(5), 1-17.
Sebastian, I. M., Ross, J. W., Beath, C., Mocker, M., Moloney, K. G., & Fonstad, Nils O. (2017) How Big Old Companies Navigate Digital Transformation. MIS Quarterly Executive, 16(3), 197-213. https://www.researchgate.net/publication/319929433_How_big_old_companies_navigate_digital_transformation
Seo, D. B. (2017). Digital business convergence and emerging contested fields: A conceptual framework. Journal of the Association for Information Systems, 18(10), 687-702. https://aisel.aisnet.org/jais/vol18/iss10/3/
Tallon, P. (2003). The alignment paradox. CIO Insight, 1(40), 75-76.
Teixeira, T. S., Guissoni, L. A., & Veludo-de-Oliveira, T. M. (2018). Digital transformation at Brazilian retailer Magazine Luiza. Harvard Business School Case 519-009.
Teubner, R. A., & Stockhinger, J. (2020). IT/IS Strategy Research and Digitalization: An Extensive Literature Review. In Working Papers, European Research Center for Information Systems. https://www.econstor.eu/handle/10419/228978
Tumbas, S., Berente, N., & vom Brocke, J. (2017). Three types of Chief Digital Officers and the reasons organizations adopt the role. MIS Quarterly Executive, 16(2), 121–134. https://www.researchgate.net/publication/317770186_Three_types_of_chief_digital_officers_and_the_reasons_organizations_adopt_the_role
Venkatraman, N. (1994). IT-Enabled Business Transformation: From Automation to Business Scope Redefinition. Sloan Management Review, 35(1), 73-87.
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144.
vom Brocke, J., Schmid, A.M., Simons, A. and Safrudin, N. (2021), "IT-enabled organizational transformation: a structured literature review". Business Process Management Journal, 27(1), 204-229. https://www.emerald.com/insight/content/doi/10.1108/BPMJ-10-2019-0423/full/html
Wade, M., & Hulland, J. (2004). Review: The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research. MIS Quarterly, 23(1), 107-142. https://www.scirp.org/reference/referencespapers?referenceid=1741596
Walsham, G. (1995). Interpretive case studies in IS research: nature and method. European Journal of Information Systems, 4(2), 74-81. https://link.springer.com/article/10.1057/ejis.1995.9
Weill, P., & Ross, J. W. (2004). IT Governance: How Top Performers Manage IT Decision Rights for Superior Results. Harvard Business School Press.
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