A Case Study on Infosys Technologies Ltd Essay Example
A Case Study on Infosys Technologies Ltd Essay Example

A Case Study on Infosys Technologies Ltd Essay Example

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  • Pages: 3 (823 words)
  • Published: February 7, 2018
  • Type: Essay
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This paper examines the relationship between Infosys, a company, and its Business-IT Alignment. The importance of this alignment for the organization is explored, followed by a review of the company's business objectives, goals, vision, and business strategy. The study aims to assess whether the company's IT structure aligns with its business strategy. To achieve this goal, primary and secondary sources are collected and analyzed using Luftman and Brier's strategic alignment framework. The analysis results indicate that Infosys achieves an optimal level of IT alignment.

One of the primary factors contributing to this success is the active participation of Mr. Narayana Murthy, the founder and Chairman, in aligning IT with the business. Thanks to the positive initiative taken by senior management, this company has efficient management skills and is consistently developing information systems to support its goal

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of becoming a market leader. In conclusion, I concur with Luftman and Brier, who assert that IT strategies are equally crucial to business strategies and must be aligned for any company to thrive in a competitive landscape.

The article discusses the Business Strategy, IT Alignment, and Governance mechanism of organizations, and how it supports their requirements. The chosen company for this purpose is Infosys Technologies LTD in Bangalore, INDIA, a Technology Consulting and Services company. The selection is based on the company's robust structure and its ambition to become a top global company. The company's progress in recent years demonstrates its effectiveness in achieving goals through both organic and inorganic methods.

The literature review by Jerry Luftman and Tom Brier (1999) highlights the significant investment in IT over the past decades. Business executives are concerned with aligning IT in a suitabl

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and timely manner, in line with business strategies, goals, and needs. The importance of alignment has been recognized since the late 1970s and is further emphasized as companies strive to integrate businesses and technology amidst evolving strategies and technologies.

According to the author, there is a lack of empirical evidence regarding the appropriate method for aligning business and IT strategies, despite extensive discussion on the topic from a theoretical standpoint. The fundamental principle of aligning an IT strategy with a company's business objectives has been advocated over time. (Refer # Figure - 2) The author states that business IT alignment involves applying IT in a suitable and timely manner, in harmony and collaboration with the needs, goals, and strategies of the business. The terms "harmony", "linkage", "fusion", "fit", "match", and "integration" are often used interchangeably with the term "alignment".

According to Jerry Luftman and Hunter Muller (July 2005), the effectiveness of an IT project lies in how a business adapts its processes to leverage new technologies in order to achieve its objectives. To maximize the overall value of IT ownership, companies should focus on portfolio management and governance, with a particular emphasis on companywide returns. Total cost of ownership (TCO) plays a crucial role in aligning the company's business strategy with IT. Luftman, Bullen, Liao, Nash, and Neumann (2004, pp. 89-90) outline a Six-Step process for evaluating strategic alignment. (Refer to Figures 3 ; 4)

According to Kenneth J. Sousa, Laurie E MacDonald, Kenneth T Fougere (September / October 2005), computer security is becoming increasingly important due to the growth of business and IT infrastructure development. The internet has revolutionized communication and data transfer, which are crucial for

businesses in today's global environment. As a result, companies now face greater pressure to maintain high security standards. Previously, security efforts were focused on employees and safeguards, but now system administrators must also consider external threats that can arise through the internet.

(Refer # Appendix - 1) (Continued from page 10) According to Rockart, Earl and Ross (1996), Communication plays a crucial role in modern businesses as it ensures effective integration of business and IT capabilities. Senior executives consider IT understanding the business to be one of the top three enablers of alignment, according to Luftman, Papp, and Brier (1999).

According to Reich and Benbasat (2000), alignment is positively influenced by shared knowledge of business, IT, and communication between IT and business managers. The Communications component includes mutual understanding of IT and business environments, inter/intra-organizational learning, and communication protocol rigidity.

According to Jerry Luftman and Tom Brier (1999), IT governance involves prioritizing and selecting projects and appropriately allocating IT resources, such as staff and budget. Henderson, Venkatraman, Oldach (1996), and Luftman (1996) state that governance is the decision-making process for IT activities, including project selection, technology ownership, budget control, and IT investments. The Governance component includes: 1. Pervasiveness of business strategic planning with IT involvement 2. Pervasiveness of IT strategic planning with business involvement 3. Structure of the IT Organization 4. IT budgeting 5. IT Investment Management 6. Frequency, Formality, and effectiveness of steering commitments 7. Integration of Project Prioritization

Outsourcing is a process where companies take advantage of countries with cheaper labor and high intellectual expertise. In today's global scenario, IT plays a crucial role in businesses worldwide, and outsourcing allows companies to focus on their core competencies

by outsourcing non-competent work to service providers.

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