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Master Thesis: GIS Project management Final Version Reeve and Cornelius (1993) write: ♦ Information Systems are the servants of business needs (not the other way around); ♦ Information Technology is the servant of information requirement (not the other way around). Though both statements are true it does make sense to align the strategies in order to gain advantage. As shown in figure 14 there are several ways to ensure alignment. Figure 14: Business to IT alignment Driving Towards Business Results Path Strategy Processes Technology Process change only improvement Technology change only improvement Combining process and technology change improvement Technology enabled strategy and execution New business (step change) © 1997 Hans Bestebreurtje, MSc UNIGIS Business Results Potential business impact Source:Hewlett-Packard 1995 Through process change, technology change or a combination of both it is possible to improve the business result. A real breakthrough can only be reached adopting a technology 36
Master Thesis: GIS Project management Final Version enabled strategy. For example if a new company strategy is to “provide the customer with information on the status of their order and order volume” this can be done by changing the reporting process of the order administration. Adding a new order-tracking system could provide customers with a on-line information system with the actual order status of the moment. In this case the process changes and the technology enables the change, thus improving the total process. The urge to fundamental analyses and radical redesign of business processes to drastically improve an organizations performance to meet today’s competitive requirements, in terms of costs, quality, service and speed, is common in many organizations. This process, which is sometimes also called Business Process Re-engineering, is using the process and technology change to achieve breakthrough results. The way IT is being used has an influence on the business impact of the IT systems. Where organizations in the past used IT in a purely functional or cross functional way the demands of the nineties make it necessary for many organizations either to use IT in a process management way or ultimately redesign their entire processes. The importance of this should not be underestimated; if the expectation of the principal of a project and that of the organization are not in line there is bound to be a problem. An IT project has an impact on the organization. Depending on the kind of project, the impact can be different. (Figure 15) © 1997 Hans Bestebreurtje, MSc UNIGIS 37
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