Strategy can be defined simply as principles, a broad based formula, applied in order to achieve a purpose. These principles are general guidelines guiding the daily work to reach business goals. Strategy is the pattern of resource allocation decisions made throughout the organization. These encapsulate both desired goals and beliefs about what are acceptable and, most critically, unacceptable means for achieving them. While the business strategy is the broadest pattern of resource allocation decisions, decisions that are more specific are related to information systems and information technology. IS must be seen both in a business and an IT context. IS is in the middle because IS supports the business while using IT. This will be discussed later in this book in terms of IT governance as strategic alignment.