Henderson and Venkatraman’s (1999) article “Strategic alignment: Leveraging information technology for transforming organizations” is a seminal work in the field of information technology (IT) and organizational strategy. The article emphasizes the importance of strategic alignment between IT and business goals to achieve organizational transformation and success.
The authors argue that in order to leverage IT for organizational transformation, firms must have a clear understanding of their business strategy and goals. They propose a framework called the Strategic Alignment Model (SAM) that identifies four key domains of strategic alignment: business strategy, IT strategy, organizational infrastructure, and processes. The SAM framework helps organizations assess the alignment between their business and IT strategies and identify areas for improvement.
The article also identifies three levels of strategic alignment: strategic, tactical, and operational. Strategic alignment at the strategic level involves aligning IT with the overall business strategy, while tactical alignment involves aligning IT with specific business functions or processes. Operational alignment involves aligning IT with day-to-day business operations.
The authors also highlight the importance of IT governance in achieving strategic alignment. Effective IT governance ensures that IT resources and investments are aligned with business goals and that IT initiatives are prioritized and managed effectively.
Overall, Henderson and Venkatraman’s article emphasizes the need for a holistic and integrated approach to IT and business strategy to achieve organizational transformation and success. The SAM framework and the concept of strategic alignment provide a useful framework for organizations to assess and improve their IT strategy and alignment with business goals.