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Managing the Strategic Alignment of Organizations 73 According to them, this approach is an improvement because it enables managers to move smoothly from one component to another by identifying and understanding the possible courses of action in the different steps. What these managers should keep in mind is that the four steps could affect the alignment of ecommerce, although some of the external threats such as social impact and disasters are difficult to control. Managers should acknowledge that these could affect alignment of the strategies. Therefore, one should expect risk-reducing measures will eventually enforce an alignment of strategies. The key to understanding strategic risks is dependent on the organization’s ability to foresee long-term benefits from a new system, assess the resources and capabilities of its potential competitors, assess its own financial strength, and align its e-commerce strategy with its overall business strategy (Bandyopadhyay et al., 1999). Organizational strategy provides the vision of where any organization needs to go. The problem is that many organizations focus too much on tactics and operations, while the real value of e-commerce is to open new opportunities such as economics and to enter new markets such as e-commerce to induce potential customers to use the organization’s products. Organizations could directly derive e-commerce and operational objectives from the overall objectives, ensuring alignment of e-commerce and business strategies. One of the problems every organization faces is that objectives and strategies can change according to market dynamics such as economics and social changes. At the strategic level, senior managers need a clear vision of the competitive impact of e-commerce and how it will affect the alignment of e-commerce. Business strategy provides the vision of where the organization wants to go. Most organizations therefore focus on e-commerce (new revenue opportunities) to help the organization becomes competitive and enter new markets. It should be possible to ensure that technology objectives and operational objectives are directly derived from the organization’s corporate objectives, ensuring that business and ecommerce organizations are focused on the goals and that they are aligned. Managers must keep in mind that a life cycle will provide a perspective of the formulation of these strategies because each phase of the life cycle has distinct characteristics that affect the operation of the business. Each one of these phases could ‘experience’ a gap and managers should ensure that economic advantage does not make these gaps bigger during any of these phases. These performance gaps need managing; the organization should determine its overall market posture considering its relative position in the industry. To forecast the incremental advantage effect likely to result from implementing alternative alignment planning, organizations should structure profile measures concentrating on industry market potential, relevant industry sales and real market Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
74 Lubbe share. This is where e-commerce should ensure that everyone who might use the product is using it as fully and as often as possible. The problem, however, is that visitor’s numbers as claimed by Internet Service Providers (ISP) cannot be verified and until that can be done, will CEOs surely look at the economic and social impact as things that cannot be reconciled. These gaps, as mentioned before, can contribute positively or negatively towards the economic strategy of the organization and it can affect the actual performance of the organization on the e-commerce strategy of the organization. These gaps are: • Product line gap: Introducing improved or new products should ensure that the organization could compete on the Internet. • Distribution gap: This is where e-commerce can help to expand the coverage, intensity and exposure of distribution. This can help to better align the IT strategy and that of the organization. • Usage gap: The Internet should help to induce current users to try the product and encourage users to increase their usage. • Competitive gap: This is where e-commerce and the economic and social impact approach of the organization can make inroads into the market position of competitors as well as product substitutes. The future marketing approach can be used as an advantage by the organization and can be increased. The alignment of the organization’s strategies can also be improved by increasing the organization’s industry economic potential, which can be done by increasing relevant industry sales while maintaining the present market share or by improving the organization’s real market share. IMPLICATIONS FOR IT BUSINESS VALUE DURING THE ALIGNMENT OF IS AND BUSINESS STRATEGY Tallon and Kraemer (1998) noted the argument that organizations’ inability to realize sufficient economic value from their e-commerce investment is because of an absence of strategic alignment. They cited Child (1992), who argued that the content of alignment should be a series on intersecting and mutually consistent choices across domains such as economic factors, business strategy, e-commerce strategy, organizational infrastructure and processes and e-commerce infrastructure and economic processes. Other authors noted that these domains do not allow considerations of strategic alignment as a continuous process, nor does it consider Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
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Acquisition Editor: Mehdi Khosrow-P
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The Economic and Social Impacts of
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vi Preface E-commerce is not new, t
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viii the e-commerce’s experience
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About the Authors 259 Eric Cloete B
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About the Authors 261 Technikon. He
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A absenteeism 191 accreditation 247
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