IT in construction. Aligning IT and business strategies

A. Laan, Albertus Laan, A. Leuven, S. Kolkman, Johannes T. Voordijk

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Abstract

The extent to which information technology (IT) infrastructures and strategies are aligned with business processes and strategies varies widely along firms. The objective of this paper is to explain the success or failure of IT in construction firms by focusing on the alignment (or lack of it) between business strategy, IT strategy, organizational infrastructure, and IT infrastructure. It is hypothesized that the ‘fit’ among these elements, the domains of the Strategic Alignment Model, is positively related to the Business Value of IT in Construction. The IT Business Value is evaluated in terms of efficiency, effectiveness and business performance. By applying the Strategic Alignment Model to the Dutch construction industry, it is shown that the inadequate alignment between these domains is a major reason for the modest added business value from IT investments in this industry. The first lack of alignment is the technology shortfall: hence IT contributes in an inadequate way to strategic processes of construction firms. The second lack of alignment is the strategy-shortfall: hence the firm strategy impedes the implementation of IT that could generate a high business value.
Original languageUndefined
Title of host publicationARCOM Proceedings of the eighteenth annual conference
EditorsD Greenwood
Place of PublicationReading, UK
PublisherAssociation of Researchers in Construction Management (ARCOM)
Pages439-450
ISBN (Print)0-9534161-7-8
Publication statusPublished - 2 Sep 2002
Event18th Annual ARCOM Conference 2002 - University of Northumbria, Newcastle-upon-Tyne, United Kingdom
Duration: 2 Sep 20024 Sep 2002
Conference number: 18

Publication series

Name
PublisherAssociation of Researchers in Construction Management

Conference

Conference18th Annual ARCOM Conference 2002
Abbreviated titleARCOM
CountryUnited Kingdom
CityNewcastle-upon-Tyne
Period2/09/024/09/02

Keywords

  • IR-86020
  • METIS-206379

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