The Impact of Business IT Strategic Alignment on Corporate Performance

Abstract

Information technology's role is vital for a company's progress in its business management. Companies must implement differentiation and cost-reduction strategies to gain a competitive advantage in intense competition, especially among electrical appliance distributors. The implementation of cost reduction cuts business processes by streamlining IT/IS. However, business processes still have not implemented information systems, such as stock data collection, transaction problem reporting, and much more. Therefore, companies need to move dynamically with the flow of technological changes by planning the right technology strategy. Based on the problems that arise, this research is only limited to strategic planning of information systems and application portfolios using the Ward and Peppard approach because it focuses on mapping the company's internal-external factors regarding business and technology. This research hypothesizes that the determination of the strategy can be successful in realizing the application's application within five years in an electrical appliance distributor company. The research stage begins with collecting data from the literature, interviews, and direct observation. Next, analyze the internal and external environment using the help of the Ward and Peppard method. The environmental analysis results become the basis for mapping the Critical Success Factors (CSF) that need to be evaluated using the IT Balanced Scorecard. The results of this research are in the form of a proposed strategy for business, management, and information technology systems in the form of an application portfolio. The direction of application implementation is through product roadmap and master plan planning. This study aims to build the right business strategy and technology to help companies realize application implementation in the short and long term.