- Published: December 31, 2021
- Updated: December 31, 2021
- University / College: University of Pennsylvania
- Level: Undergraduate
- Language: English
- Downloads: 32
INFORMATION SYSTEM ALIGNMENT By 9th, September, Importance of Information System Alignment and Formal Organization Structure
This article, based on the research conducted on the techniques used by eight organizations to monitor and improve the alignment and performance of their information system (IS) functions, focuses on the challenge of aligning the information system and how it influences these organizations’ activities. Proper and effective alignment is necessary in order to avoid poor performance and unnecessary inefficiency. However, cases where there is misalignment, the business executives are unable to clearly articulate IS needs or even when the IS personnel have limited business vision or knowledge, high IS investment yielding low returns. Additionally, in cases where there is misalignment, the IS job gets done but with unnecessary redundancy and inefficiency, greater costs and delays leading to poor performance. And as a result, the organizations invest heavily in IS to compete effectively but still they experience disappointments in performance (Chan, 2002, p. 98-100).
The study used both strategic and structural alignment. Research on strategic alignment proposes aligning business unit and IS strategies including communication and understanding between lines and IS executives, interconnected business and IS planning process and resulting plans among others. However, structural alignment refers to the degree of structural fit between the IS system and the business. Structural fit relates to organizational structure including location of IS decision-making rights, reporting relationships, and deployment of IS personnel. This alignment aims at supporting organizational objectives.
An important point of discussion is that, effective information system alignment is appropriate for many organizations to escape unnecessary inefficiency and high cost. The strategies used by enterprises to monitor and improve the alignment and performance of information system functions should be a major concern for most organizational personnel.
Chan, Y 2002, Why Haven’t We Mastered Alignment? The Importance of the Informal Organization Structure, MIS Quarterly Executive, Vol. 1 No. 2 / June.
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