28 THE STRATEGIC ALIGNMENT MODEL

structure. Given the view that the architectures define key princi-
ples, policies, standards, and rules, these choices are analogous to
the business infrastructure choice of administrative structure.
2. IT processes—choices that define the work processes central to op-
erations of the IS infrastructure, such as systems development or
operations. This is analogous to the need for designing the business
processes that support and shape the ability of the firm to execute
business strategies.
3. IT skills—choices pertaining to the acquisition, training, and de-
velopment of the knowledge and capabilities of the individuals re-
quired to effectively manage and operate the IT infrastructure
within the organization. This is analogous to the skills required
within the business domain to execute a given strategy.

Functional Integration
As described above, the need to integrate IT and business strategies has
long been advocated by both researchers and practitioners. The functional
dimension specifically considers how choices made in the IT domain impact
(enhance or threaten) those made in the business domain and vice versa.
The strategic alignment model identifies the need to specify two types
of integration between business and IT domains. The first is at the strategic
level (top two boxes in Fig. 2.1), looking at the potential for IT to both
shape and support business strategy. The second is at the operational level
(bottom two boxes in Fig. 2.1), looking at the link between organizational
infrastructure and processes and IS infrastructure and processes.

Using the Model

Research has shown that effective management of IT means achieving a
balance among the choices made across all four domains. The question,
then, is how to conceptualize and achieve this type of alignment.
The simplest approach calls for considering all combinations of any
two domains. If, for instance, the organizational and IT infrastructures can
be reconfigured easily, then a perspective that reflected only a strategic view
of integration—i.e., the fit between business and IT strategies—could suf-
fice. That is, if the firm could easily adapt its internal processes (both busi-
ness and IT) to support any possible market positioning strategy, the