The development of appropriate IT architecture is crucial to any organisation. In order to maintain your competitiveness, the way you structure your IT systems is important.
Now, whilst the area of strategic need being analysed is the determination of the most suitable IT architecture, the key driver here is in determining the strategic positioning of your business. According to Michael Porter, a major international figure with respect to business strategy, striving for sustainable competitive advantage is through, broadly, one of two generic positioning strategies: cost leadership or product differentiation.
It is through the understanding of your positioning strategy that appropriate investments, including IT investments, can be made.
You also need to take into account of the focus of the resultant ICT investment. If its in the operational side of the business, you should aim for efficiency. If it’s in the area of your organisation’s expertise, then you should aim to support the positioning strategy.
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