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Information technology (IT) has come to play a prominent role in organizational existence, leading to the belief that information systems (IS) strategy should be aligned with the business strategy. Indeed, the issue of alignment between IS and the business has traditionally been one of the key issues facing IS management.' Perhaps the reason for the interest in strategic IS alignment is because it has been shown to enhance not only IS success but organizational success as well.2 Yet, despite this general recognition of the importance of strategic IS alignment, insufficient research has been conducted on how such alignment is achieved and sustained over time. Consequently, the difficulties in achieving and sustaining alignment have been largely underestimated and the path toward alignment is often treacherous.3
The notion of strategic alignment as used in this article is based on three central arguments found in the literature. One, an organization's performance is related to its attaining the appropriate structure and capabilities to execute its strategic decisions.' Two, alignment is a two-way street. As organizations enter an era of information superhighways, expanded electronic commerce, and "virtualness," executives increasingly realize that in addition to business strategy influencing IT, IT now also influences business strategy.5 Finally, it is evident that strategic alignment 'is not an event but a process of continuous adaptation and change."6 Thus, our view of strategic alignment focuses on an organization's ongoing efforts to establish and maintain a series of interdependent relationships between business and IS strategies. These relationships involve the movement (i.e., change) of business strategy and/or IS strategy in such a way that the two are in alignment.'
While efforts to achieve alignment between IS and the business are some times successful, they often go astray. We observed three problematic trajectories, which we label as paradoxical decisions, excessive transformation, and uncertain turnarounds. Organizations sometimes make a decision that actually takes them out of alignment (paradoxical decision), go too far in certain respects (excessive transformation), or reverse a change and go back to the original position (uncer twin turnaround).
Strategic IS Alignment
Why Is Strategic IS Alignment Important?
Greater alignment or "fit" between an organization's business strategy and IS strategy implies that the information systems are targeted on areas that are critical to successful business performance.' Alignment...