Ever wondered why IT must align with your business strategy? Information technology is one of the key business functions for every enterprise and the business leaders have great expectations of their investment in IT to enable benefits for their organisation and their customers. Some of the expected benefits include cost reduction, process standardisation, productivity enhancement, workflow improvement, enhanced communication across departments, implementation of new business strategies in quick time responding to competitive dynamics, enable organic and inorganic (M&A) growth, and gain sustainable competitive advantage by utilising IT strategy and infrastructure.
Various forms of business and IT alignment
There are various trajectories that enterprises take to align their business and IT. Couple of them have been illustrated below. The one on the left indicates a firm which tries to combine strategy execution and technology to work with the IT infrastructure that includes ERP (Enterprise Resource Planning). The one on the right shows how an enterprise uses another trajectory to achieve better service levels and improve their competitive advantage to have flexibility in the long term and therefore, has a different form of alignment of their business and IT.
To accommodate such changes in alignment of business and IT, the components that are part of IT strategy plays a key role. ERP is one of the critical components for any organisation to align IT with business changes. It must be flexible and have necessary business controls, along with industry-specific standard best practices, and the ability to interact with third party software to engage with stake holders across the supply chain.
Key features of an ERP system that enable superior IT and business alignment
- Flexible parameterisation
- Print designer tool
- 360-degree view reporting
- Seamless API integration
- Service oriented extendable architecture
- Built in process packs
- Mobility enabled
- Cloud ready
- Social media enabled
- Port let configuration
- Industry ready solutions for Distribution, Manufacturing and Contracting
- Effective linking of people, process and information
- Addressing the need of B2B and B2C companies
- High compliance and meticulous audit ability
Contributions from Kishore Kanna.N | DVP | Global Support Head – ORION ERP