ALIGNING BUSINESS AND IT STRATEGIES 33

Figure 2.3.

akin to excellent strategy formulation efforts without corresponding atten-

tion to strategy implementation issues.
To help this process, four alignment mechanisms have been identified
(see Fig. 2.3).

1. Value management is the mechanism for ensuring that the maximal

benefits are realized from IT investments.
2. Governance specifies the allocation of decision rights to the key
executives or partners.
3. Technological capability is the mechanism for specifying and mod-
ifying the various IT capabilities required to support and shape busi-
ness strategy.
4. Organizational capability is the mechanism for specifying, modify-
ing, and perhaps reinventing the various skills and processes re-
quired to support and shape business strategy.

Finally, strategic control, the central area of Figure 2.3, represents the
essential need for an ongoing planning process task, which assesses and
adapts the above processes in a manner that achieves internal consistency.