The relationship between Three Strategies

Successful firms' business strategy drives both their organizational and IS strategies. From the Strategy Triangle, we know that business strategy means the goals, objectives, strategies, and tactics of the company; organizational strategy means the stucture, hiring,operations, and process during the implementation of that company's business strategy; IS strategy consists of hardware, software, application, database, procedure, people, and network of the company. That is, organizational strategy and IS strategy can make the business strategy develop well. As soon as a company establishs its targets in businesses, it will take various measurements to achieve the purposes. At that time, the company will develop its business stucture and implement some operations. During these processes, information system also play an important role. Whether hardware or software, both of them can help the businesses.

Furthermore, the business strategy drives organizational and IS strategy means that the contents of these three strtateies are not conflicting, they are should be consistent. In other words, as long as organizational and IS strategy are drived by business strategy, the status of organizational and IS strategy in businesses will be incarnated. Obviously,when the company achieves its business strategy, it also gets its organizational and IS strategy. So, if the company want to be successful in its business, its business strategy should drive its organizational and IS stratgy. Business Strategy drives all other strategies. Organizational and Information Strategy are then dependent upon the Business Strategy.These three strategies make the company develop businesses more integrate.

If the company's business strategy was not the driver for its organizational and IS strategy, then the businesses will not be successful. When the business strategy was not the driver, these three strategies will have no relationships and be independent, which is not good for company. For example, if the organizational and IS strategy are not drived by business strategy, even if the company achieve its business strategy, it does not mean it also achieve its organizational and IS strategy. Sometimes, the company will change the original business strategy to drive its organizational and IS strategy, and the original business strategy maybe wasted time and money. At that time, the company cannot get the real successful in its businesses. In a word, if the business strategy was not the driver, the company is hard to be successful in businesses.

When a traditional manufacturing company wants to take advantage of the Internet and the Web, its business model changed from traditional business to e-commerce business. In order to lower costs and improve efficiency, taking advantage of the Internet and Web is a good choice for traditional manufacturing company.

Inevitably, the business strategy also should be change from traditional business. After the company use Internet and Web to manage its businesses, the business strategy not only mention the company's traditional goals, but also should include the Information transformation of the company[1]. For example, one of the objectives in business strategy should be related to manage data, and change the traditional method for managing data. About Information transformation, it also can be the main strategy and goal for that company.

Certainly, with the changed business strategy, organizational and IS strategy also need to change. After the company use Internet, all activities and businesses will implemented online. At that time, the target of organization strategy is online transaction. On the other hand, the IS strategy should be change to more advanced, or develop new technology. For that traditional manufacturing company, taking advantage of Internet and web is a competitive advantage. So its organitional and IS strategy must be consistent with the advanced technology.

The CIO is Chief Information Officer, whose position is providing strategic direction, planning, oversight, delivery and accountability for information technology (IT) activities. This position requires an individual to roll up their sleeves and contribute while leading the IT function within the organization. Key areas of responsibility include planning, organizing, staffing, directing and controlling company information technology functions [2].

As we know that IS becomes more and more important in business activities, that is, CIO is the manager of IS. "The job of the CIO is to provide organisational and strategic flexibility" means that CIO can provide organizational and strategic flexibility, because CIO manage IS. Information System can impact the business strategy and organizational strategy in some way. According to the changing information, CIO can suggest the business strategy and organizational strategy, and also can make the strategy more flexibly.

Reference:

[1] "E-commerce". Retrieved February 15, 2009, from World Wide Web: http://zhidao.baidu.com/question/70444345.html

[2] "Chief Information Officer". Retrieved February 15, 2009, from World Wide Web: http://careerlink.com/9/9/4/8/po/000981f.htm