Chapter Overview
This chapter presents a very simple framework, the Information Systems Strategy Triangle, which links business strategy with organizational strategy and information strategy. The chapter describes this model, and builds on several other popular strategy models and organizational models. The goal of this chapter is to make sure every student has a basic understanding of both strategy and organizations (in many management programs, one or both of these are either reserved for the most senior students or left out entirely). For students well versed in strategy and organizational behavior, this chapter is a review of key points from those two fields.
Key Points in Chapter
The Information Systems Strategy Triangle links business strategy with organizational strategy and information strategy. The use of the triangle is done to suggest that all 3 points are in balance in any organization, and if they are out of balance, then organizational tension or possibly crisis exists. A company is out of “alignment” when their business strategy is not supported by there IS. There are several implications from this model. First, business strategy drives organizational and information strategy; Second, organizational strategy must complement business strategy. Third, information strategy must complement business strategy. Fourth, organizational and information strategy should complement each other. Finally, if a change is made to one corner of the triangle, it is necessary to evaluate the other two corners to insure balance is maintained. That means that if the business strategy is changed (i.e. such as becoming a "bricks and clicks" company) then the manager must also consider redesign of both the organization (i.e. do we have people that can be successful in this new strategy) and the information systems (i.e. do we have the capability to process inquires taken off of the web).
Strategy