Source / Reference:
1)  Papp, R. (2004). “Assessing Strategic Alignment in Real Time” Journal of Informatics Education Research, (6, 1)

2)  P Coleman and R Papp, “Strategic Alignment: Analysis of Perspectives” (2006)
http://sais.aisnet.org/2006/Coleman-SAIS2006-paper.pdf

3)  "Strategic Alignment: Leverage Information Technology for transforming organization" by J C Henderson and N Venkartraman 1993
http://search.proquest.com/docview/26252741/134A6C8B53F19A4F606/1?accountid=16210

Subject: 

In Lecture 4 - Which alignment strategy in SAM model is the best? and why?
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Response:
        There is no the best alignment strategy in SAM model because it depends on many aspects of a business such as the industry nature, the size of company and technology. Every strategy in SAM model is to accomplish a unique goal or deal with one unusual problem under special considerations and factors. There is no any universal rule to calculate the priority of each goal or problem in all cases or companies. Also, Strategic Alignment Model would be changed in different explanation and definition anytime. To combine two alignment strategies, it would be a new alignment strategy. 

The Strategic Alignment Model (SAM)

Henderson and Venkatraman’s model is divided into two distinct parts, business and information technology ( IT ). Each area has two domains which are strategic and infrastructure.

Business Strategy

        The components of business strategy are business scope, distinctive competencies, and business governance. Business scope refers to everything that might affect the business environment. The distinctive competencies component refers to all the things that make the business a success in the market place. The business governance component refers to the relationships that exist between the stockholders of the company and senior management, mainly the board of directors. This also includes any governmental regulations and relations between other strategic business partners.

Business Infrastructure

Administrative structure, business processes, and human resource skills are the components of business infrastructure domains. Administrative structure refers to how the organization runs its business. The business process component refers to just that, all of the activities and how they operate. The human resource skills component involves all the considerations made for how to hire/fire, motivate, train, educate and culture their employees.

Information Technology Strategy

Information technology strategy consists of the technology scope, systematic competencies, and information technology governance components. Information technology scope is simply all of the essential information applications and technologies that the business uses. The systematic competencies component is the all capabilities that set the information technology services apart from the rest. The information technology governance component describes the makeup of the authority behind the information technology and how the resources, risk and responsibility, are distributed between the business partners, information technology management, and the service providers.

Information Technology Infrastructure

The components here are architecture, processes, and skills. The architecture component is the technological priorities, policies, and choices that drive the integration of applications, software, hardware, networks, and data management into a single business platform. The processes refers to the actual practices and activities that the personnel do to develop and maintain applications and manage the information technology infrastructure. The last component is the skills component, which simply refers to the human resource activities done for information technology.

Strategic Fit & Functional Integration

The linkages of four areas are necessary because different combinations of those areas have to work as a whole unit. The first linkage is that of strategic fit. This is the vertical linkage in the model. This linkage explains the need of the business to make decisions that will dictate their position in the marketplace. Strategic fit refers to the use of strategy to determine the infrastructure of the business.

The second linkage is functional integration. This is the linkage that is most directly related to information technology and the alignment of the business. As the business changes the technology must change to keep up with the business processes. This linkage describes the ability of the business to successfully position itself in the marketplace by using information technology. This linkage can bring about competitive advantage and it maximizes the value of information technology.

Strategic Alignment Perspectives

Now, the strategic alignment perspectives can now be discussed. The alignment of a business is described by a perspective that is based on that business’ assessment according to the strategic alignment model. These perspectives occur when strategic fit and functional integration are assessed simultaneously. There are eight different perspectives that are formed from the different area combinations of the strategic alignment model. These perspectives are constructed in a type of triangular format based on that simultaneous assessment. Every perspective consists of three components and it is affected in that particular assessment.

Strategy Execution

        The first perspective is the strategy execution perspective. In this perspective, the driver is business strategy. The weak area is the business infrastructure, which is what needs to be changed. The resulting area of impact is the information technology infrastructure. This means that the information technology architecture is going to undergo changes that must happen because of changes in the business processes.

Technology Potential

        The next perspective is the technology potential perspective. This perspective is also driven by business strategy but the pivot is information technology strategy. This results in the information technology infrastructure as the area of impact. This shows the value of information technology and that its value is its main contribution to the business’ final product or service.

Competitive Potential

        The third perspective is the competitive potential perspective. The driver in this perspective is information technology strategy and the pivot area is business strategy and organization infrastructure is the impacted domain. This perspective focuses on how emerging new information technologies can influence and enable new business strategies.

Service Level

        The service level perspective is the fourth individual perspective. In this perspective the driver is information technology strategy, the pivot information technology infrastructure, and the area of impact is organizational infrastructure. The focus of this perspective is how information technology can improve the how the products and services are delivered.

Organization IT Infrastructure

        The next perspective is the organization information technology infrastructure perspective. The driver is organization infrastructure, the pivot is information technology infrastructure, and the impacted domain is information technology strategy. This perspective results in process improvements from information technology and the application of value to the business processes.

IT Infrastructure Strategy

        Information technology infrastructure strategy is the next perspective. The focus of this perspective is the improvement of information technology strategy based on the implementation of emerging and existing information technology infrastructures. The driver of this perspective is information technology infrastructure, which drives the pivot, information technology strategy, and thus impacting business strategy

IT Organization Infrastructure

        The seventh perspective is the information technology organization infrastructure perspective. The driver of this perspective is also IT infrastructure, with the pivot being organizational infrastructure and the impact area being business strategy.

Organization Infrastructure Strategy

        The final individual perspective is the organization infrastructure strategy perspective. Business infrastructure is the driver, business strategy the pivot, and IT strategy the affected area. This final perspective exploits the capabilities to enhance new products and services, influence strategy, and develop new relationships.

Fusion (Combined perspectives)

        In addition to these eight perspectives, there are also four fusion perspectives that are formed from the combination of two of the individual perspectives. This combination of perspectives results in two pivots or weak areas. There is more than one pivot and both impact the same area, the weakest pivot of the two must be identified and handled first.

        Organization strategy fusion is the first fusion perspective. This perspective results from the combination of IT organization infrastructure and IT infrastructure strategy perspectives, which both impact business strategy. The basis of this fusion perspective is that it is technology driven, that IT a solution and that it has a dominant role in the business.

        The next fusion perspective is the organization infrastructure fusion perspective. This fusion combines the competitive potential and service level perspectives which results with an anchor of IT strategy and organization infrastructure is the impact area. This fusion perspective is based on the performance of IT and the organization’s determination of its value.

        Information technology strategy fusion is the third fusion perspective. It is the result of combining organizational IT infrastructure and organizational infrastructure strategy. This perspective describes to top level management how IT must be developed to effect strategic change on the business.

       The final fusion perspective is the information technology infrastructure fusion perspective. It results from the combination of the strategy execution and technology potential perspectives. The impact area is IT infrastructure. The focus of this perspective is new and emerging IT architecture as a cost of success in the future of the business.

Conclusion

Business models and information technology are both growing and changing each day so different challenges would be raised in the future. Moreover, there are different explanations of Strategic Alignment Model from time to time, so some of alignment strategies would be modified or deleted. As a result, there is no prefect alignment strategy for all cases or companies in anytime. To formulate and implement strategy based on SAM model, it is the best way to solve the problem.