The relationship between IT Strategy and Business Strategy in the South African Resources Industry

Date
2014-01-14
Authors
Nxozi, Monelo
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Abstract
Alignment between IT and Business/Corporate strategies is an issue that is uppermost in the minds of CIOs and CEOs. Over the last few decades the emergence of the information age has increased the dependence on IT by businesses. Therefore strategic alignment between IT and Business has become a huge influence on competitive advantage and market positioning. There are only a few studies that deal with strategic alignment in the South African context, even more so in the resources industry. This study aims to contribute towards closing that knowledge gap. The objective was to explore the tensions that may exist between the IT and business strategies within the resources sector in South Africa, with respect to which drives the other, specifically whether IT strategy support or shape business strategy. The method of data collection was based on interviews with people who are involved in the process of strategy formulation, in IT and/or Business strategies, within the resources sector in South Africa. The key findings of this paper are that IT strategy indeed plays a critical role in supporting business strategy; and unlike in other industries, IT strategy in this industry is not suited to drive business strategy, but to support it.
Description
MBA thesis
Keywords
Resources industry, Business strategy, Information technology
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