What is the relationship beween business strategy and IT strategy?

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2026-03-13 23:15

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The relationship between the business strategy and IT strategy is direct with the IT strategy being subordinate. The business strategy emerges from two sources. The main path is through the organization's mission, vision and current goals and objectives. The other path is through the enterprise risk management plan.

The IT strategy consists of several component parts: a security plan, an application plan, an infrastructure plan and a resource plan made of a personnel plan and a funding plan.

The relationship of the business strategy and the IT strategy is then between the enterprise risk management plan driving the IT security plan and the business goals and objectives driving the application plan (most often). From there the remaining elements of the IT strategy develop with the application plan and security plan driving the infrastructure plan (aka technology plan) which in turn drives the resource plan for funding and staffing including training requirements.

IT Strategy:

- Technology

- Applications

- Capabilities

- Governance

IT enabled Business Strategy:

- Competitive advantage

- Process Innovation

- Operational Excellence

- New Markets & Channels

- IT capability must enable innovation and competitive business strategies, and deliver business efficiencies.

Business Strategy:

- It must drive the decisions and priorities for IT investment.

Source: aperio-intelligence.com

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