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TitleCIO and Corporate Strategic Management Changing Role of CIO to CEO 9781599044231
TagsLeadership Strategic Management Value Chain Leadership & Mentoring Chief Information Officer
File Size4.8 MB
Total Pages313
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CIO and Corporate
Strategic Management:

Changing Role of CIO to CEO

Petter Gottschalk
Norweg�an School of Management BI, Norway

Hershey • London • Melbourne • Singapore
IdEa GROup publIShInG

Page 156

Corporate Strategic Management �4�

Copyright © 2007, Idea Group Inc. Copying or distributing in print or electronic forms without written permission
of Idea Group Inc. is prohibited.

activity set as its unit of analysis, the resource-based theory focuses on individual
resources or bundles of resources. Having a narrower focus means that the resource-
based theory may not take into account the negative impact of resources, how a
resource’s value may change as the environment changes, or the role of non-core
resources in achieving competitive advantage.
The activity-based and resource-based theories are similar as they both attempt to

-

of achieving and sustaining superior positions, the manner by which they are seen

position. On the other hand, drivers within the activity-based theory are not unique

-

resources is based on barriers to imitation. The sustainability of competitive advan-
tage as per the activity-based theory is through barriers to imitation at the activity

should be able to achieve above-average earnings over an extended period. The
-

riers to imitation of resources and immobility of resources. If resources are easily
copied or substituted, then the sustainability of the position is suspect.

-
source-based theory and the activity-based theory. Resources in the resource-based
theory are similar to drivers in the activity-based theory as both are based on earning

to activities in the activity-based theory as both imply action.

Strategic.Alignment

Alignment between business strategy and IT strategy is widely believed to improve
business performance (Sabherwal & Chan, 2001). Therefore, strategic alignment
is both a top management concern and also an important characteristic of the at-
tributes of effective CIOs.

Page 157

�42 Gottschalk

Copyright © 2007, Idea Group Inc. Copying or distributing in print or electronic forms without written permis-
sion of Idea Group Inc. is prohibited.

While the business strategy is the broadest pattern of resource allocation decisions,
-

nology. 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.
Business strategy is concerned with achieving the mission, vision, and objectives
of a company, while IS strategy is concerned with use of IS/IT applications, and
IT strategy is concerned with the technical infrastructure. A company typically has
several IS/IT applications. The connection between them is also of great interest,
as interdependencies should prevent applications from being separate islands. Fur-
thermore, the arrows in the illustration in Figure 6.3 are of importance. Arrows from
business strategy to IS strategy and from IS to IT strategy represent the alignment
perspective, they illustrate the what before how. Arrows from IT to IS strategy and
from IS to business strategy represent the extension from what to how to what. This
is the impact perspective, representing the potential impacts of modern information
technology on future business options.
Necessary elements of a business strategy include mission, vision, objectives, market
strategy, knowledge strategy, and our general approach to the use of information,
information systems, and information technology.
Mission

-
tions basic question of “What business are we in?” This single, essential sentence

do. The mission is an unambiguous statement of what the organization does and
its long-term, overall purpose. Its primary role is to set a direction for everyone to
follow. It may be short, succinct, and inspirational, or contain broad philosophical

Figure 6.3. Relationships between strategies at three levels


........................................................................................ .. Bus�ness

strategy.



IS
strategy




IT


strategy






THE BUSINESS
M�ss�on, v�s�on and object�ves, e-bus�ness strategy,

market strategy, knowledge strategy, use of �nformat�on

INFORMATION SYSTEMS
Appl�cat�ons and

�nterdependenc�es between systems

INFORMATION TECHNOLOGY
Techn�cal platform

for �nformat�on systems

Page 312

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