In chapter 11 of “Managing the Information Technology Resource,” titled “Aligning IT with the Business: The Strategic Alignment Model,” author Jerry Luftman presents a model for understanding and improving the alignment between IT and business strategies.
The Strategic Alignment Model consists of four domains: Business Strategy, IT Strategy, Organizational Infrastructure, and IT Infrastructure. Luftman explains that each domain has its own subcomponents that must be aligned with the corresponding subcomponents in the other domains for successful alignment.
The chapter goes on to describe each of the four domains and their subcomponents in detail. For example, under Business Strategy, Luftman identifies the need for clear business goals, an understanding of the competitive environment, and a strategic plan for achieving those goals. Under IT Strategy, he outlines the need for an IT vision and mission, an IT architecture, and a plan for IT implementation.
Luftman also discusses the importance of Organizational Infrastructure and IT Infrastructure in achieving strategic alignment. Organizational Infrastructure includes aspects such as IT governance, organizational structure, and IT skills and competencies, while IT Infrastructure includes hardware, software, and network resources.
The chapter concludes by outlining a process for achieving strategic alignment, including identifying the organization’s strategic objectives, assessing the current level of alignment, developing a roadmap for achieving alignment, and implementing the roadmap.
Overall, Luftman’s chapter provides a comprehensive overview of the Strategic Alignment Model, offering a practical framework for organizations to improve the alignment between their IT and business strategies.