Essay Example on Strategy Map as a structured guide to prioritize and track IT investments

This study suggests some crucial insights into understanding the dynamic interactions between information technology, IT strategy and IT investments and how they synchronize together to obtain the highest possible profit and improve the organizational market performance. Substantially IT strategic emphasis contributes significantly in regulating the relationship between IT investments and organization performance. To this end IT strategy has emerged as a powerful key instrument for the realization of strategic objective that the organization seeks to bring into focus. A business can therefore generate additional revenue or reduce costs. It can also adopt dual strategic emphasis simultaneously. Accordingly to implement an appropriate project strategy it is necessarily primordial to achieve a long term and a dynamically balanced outcome of the organizational market performance. In view of this when companies choose to adopt a new IT, they should develop the IT strategy, that includes adoption timing investment amount and requisite resources in order to become both early adopters and leaders in the industrial technology Y W Liao et al 2015. As far as the mean value of IT investments is concerned Tobin’s comparative study found that dual emphasis organizations prove to be more profitable and valuable than organizations with a single emphasis Mithas Rust 2016. Briefly these findings indicate that when IT investment levels are low the organization may require a revenue expansion and cost reduction but when IT investment levels are high dual emphasis in IT strategy or IT strategic ambidexterity can ensure market value and optimal profits.
Consequently these indicators help interrelate with other variables that affect both market performance and profitability. In an attempt to prove the utility of this interrelation Marisa Analia Sanchez and Antonio Carlos Gastaud Macada 2014 formulated a new conceptual model named Strategy Map. This organizational strategy provides a theoretical framework which in turn allows the use of data envelopment analysis DEA to measure the efficiency of project portfolio, management PPM. Hence one primary objective of this study is to advocate the use of Strategy Map as a structured guide to prioritize and track IT investments to guarantee better business results and improve an organization performance. Central to the entire discipline of IT strategy is the concept of cluster analysis. This technique is increasingly recognized as an essential factor in the management. IS It classifies and combines the variables IS strategy and IS quality and shows their interaction with New Management tools NMTs. Obviously IS strategy stands up more significant and important than IS quality. Yet it needs to align with IS quality in order to serve its purpose and have a positive effect on the financial performance ratio of the organization José Antonio Pérez Méndez Angel Machado Cabezas 2014. NMTs on the other hand cannot create business value on their own. They should therefore associate with IS strategy so that they would obtain the desired results and help directors and top managers measure organisations capability to govern their IT investments. To achieve overall business value Syaiful Ali Peter Green and Alastair Robb 2015 constructed IT investment Governance. ITIG It is a four factor effective construct with a vital role in measuring and managing IT investments. ITIG substantially raises the pattern of authority and responsibility among boards of directors to help make and implement appropriate decisions to realize optimal value from IT investments.

Write and Proofread Your Essay
With Noplag Writing Assistance App

Plagiarism Checker

Spell Checker

Virtual Writing Assistant

Grammar Checker

Citation Assistance

Smart Online Editor

Start Writing Now

Start Writing like a PRO