Business-Aligned IT Strategy Case Example: CLP Group, Hong Kong

Business-Aligned IT Strategy Case Example: CLP Group, Hong Kong

Eng K. Chew (University of Technology, Australia) and Petter Gottschalk (Norwegian School of Management, Norway)
Copyright: © 2009 |Pages: 31
DOI: 10.4018/978-1-59904-802-4.ch012
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Abstract

This chapter is about the “know-how” part of IT strategy and management best practices. This case example aims to illustrate a successful practical application of IT strategy principles and concepts by using a proven best practice from the industry. It can therefore be used as a guiding example of how to effectively develop and execute a business-aligned IT strategy. Kaplan and Norton’s (2004) strategy maps approach (described in Chapter V) has been chosen as the methodology for formulating the business–IT alignment strategy. To that end, the case study requires an in-depth study of the selected company’s business and IT strategies, from which a strategy map of the espoused business and IT strategies are “reconstructed” using the strategy maps principles. The reconstruction process follows the strategy maps methodology (Kaplan & Norton, 2004). The readers can thus adopt a similar approach to help them formulate or “reconstruct” their company’s business–IT alignment process and the resulting business-aligned IT strategy.
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Introduction

Motivation

This chapter is about the “know-how” part of IT strategy and management best practices. This case example aims to illustrate a successful practical application of IT strategy principles and concepts by using a proven best practice from the industry. It can therefore be used as a guiding example of how to effectively develop and execute a business-aligned IT strategy.

Kaplan and Norton’s (2004) strategy maps approach (described in Chapter V) has been chosen as the methodology for formulating the business–IT alignment strategy. To that end, the case study requires an in-depth study of the selected company’s business and IT strategies, from which a strategy map of the espoused business and IT strategies are “reconstructed” using the strategy maps principles. The reconstruction process follows the strategy maps methodology (Kaplan & Norton, 2004). The readers can thus adopt a similar approach to help them formulate or “reconstruct” their company’s business–IT alignment process and the resulting business-aligned IT strategy.

Methodology

IT strategies from several companies have been considered as candidates for this case example. The selection criteria for this case study are that the nominated companies must have:

  • 1.

    Clear and successful application of key IT strategy and management principles and concepts

  • 2.

    Evidence of formulation and execution of the IT strategy with at least two years track record to demonstrate alignment with the business strategy and where true business value has been delivered by the IT strategy

  • 3.

    Tangible business value delivered by the IT strategy under study validated by the company’s IT governance process

  • 4.

    Consent given by the company’s CIO1:

    • To make available the firm’s documentation of IT strategy and implementation results

    • To partake in in-depth interview by the author to validate the contents and rationale of the IT strategy, its explicit alignment with the business strategy, and the business value resulted from its implementation

The methodology for constructing this case example is as follows:

  • a.

    Nomination of a company’s IT strategy from peer recognition within a country

  • b.

    Critical review by the author (Chew) of the nominated company’s business and IT strategies documentations

  • c.

    Interview by the author and discussion with the CIO of the nominated company

  • d.

    Synthesis2 of the case example by the author (Chew) in collaboration with the CIO (using the knowledge and documentations gained from above) using basic principles described in this book

  • e.

    The case example produced is reviewed and validated by the CIO and approved by the company for publication

The company selected for the case example in this edition of the book is CLP Group,3 Hong Kong.

Complete Chapter List

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Table of Contents
Foreword
Michael K. M. Leung
Acknowledgment
Eng K. Chew
Chapter 1
Eng K. Chew, Petter Gottschalk
A general understanding of business firms is required in order to be able to develop business and IT strategies. This chapter will present the... Sample PDF
Theories and Models of Business Firms
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Chapter 2
Eng K. Chew, Petter Gottschalk
Building on the understanding of the theories and models of firms, this chapter reviews the basic principles of strategic management of business... Sample PDF
Strategic Management Principles
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Chapter 3
Eng K. Chew, Petter Gottschalk
Over the last several decades, strategy researchers have devoted attention to the question of how corporate elites (i.e., corporate executives and... Sample PDF
Strategic Alignment, IT Value, and Organizational Analysis
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Chapter 4
Eng K. Chew, Petter Gottschalk
As discussed in Chapter III, a successful IT strategy must align with the business, fully at every stage of the end-to-end strategic management... Sample PDF
Critical Success Factors of IT Strategy
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Chapter 5
Eng K. Chew, Petter Gottschalk
Chapter IV defines the macromodel for achieving business/IT alignment. This chapter defines the detailed methodology for each step of the IT... Sample PDF
Strategic Alignment for Business Value Creation
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Chapter 6
Eng K. Chew, Petter Gottschalk
The role of integrated enterprise architecture in IT strategy and strategic alignment is explained in Chapter V. This chapter describes in detail... Sample PDF
Enterprise and Technology Architectures
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Chapter 7
Eng K. Chew, Petter Gottschalk
The previous chapters describe how IT strategy and enterprise architecture can be defined in line with business strategy. The success of business... Sample PDF
Strategic Programs: Planning and Execution
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Chapter 8
Eng K. Chew, Petter Gottschalk
As introduced in Chapter II and Chapter V, performance differences across firms can be attributed to the variance in firms’ resources and... Sample PDF
Strategic IT Resources and Sourcing Strategy
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Chapter 9
Eng K. Chew, Petter Gottschalk
In many organizations, information technology has become crucial in the support, sustainability, and growth of the business. This pervasive use of... Sample PDF
The CIO Enabling IT Governance
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Chapter 10
Eng K. Chew, Petter Gottschalk
The Global CEO Survey by IBM (2006) shows that two thirds of the CEOs anticipate significant change to their companies over the next two years. The... Sample PDF
Business Innovation and Information Management
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Chapter 11
Eng K. Chew, Petter Gottschalk
As described in Chapter X, fundamental to the company’s innovation capabilities is the level of collaboration and knowledge management capabilities... Sample PDF
Innovation and Driven Knowledge Management
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Chapter 12
Eng K. Chew, Petter Gottschalk
This chapter is about the “know-how” part of IT strategy and management best practices. This case example aims to illustrate a successful practical... Sample PDF
Business-Aligned IT Strategy Case Example: CLP Group, Hong Kong
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About the Authors