Why Is It Important for Business Strategy to Drive Organizational Strategy and IS Strategy? What Might Happen If the Business Strategy Was Not the Driver?

In order to achieve success in the organization, it is important to focus all the components of the strategy triangle which includes business strategy, organizational strategy, and information strategy so that the business strategy can provide the desired goals. Many successful corporations today first build their business strategy than they establish their organizational strategy and, in the end, create an information strategy. If the organization is not going to focus on organizational & informational strategy than the business will not know where it is going. A lot of time and money of the corporation will be wasted for achieving the desired goal (Yuliansyah, Gurd, & Mohamed, 2017).

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Planning IS strategy is one of the most difficult. IS strategies of the organization deals with all the major aspects of the business model which the organization follows. IS strategies are also among the most costly strategies because the organization has to spend a significant amount of money and effort on these strategies. Therefore, it can be said that when the organization is establishing its organizational strategies & business strategies it must consider information strategies as well so that the corporation can mitigate the issues which can occur if the IS strategy is included in the business strategy (Irwin, 2016).

The issues which can occur if IS strategy is not created effectively include misalignment between organizational capabilities and organizational goals, unable to meet organizational goals and unable to support organizational system, etc. The Significance of an effective IS strategy can be understood from different examples. For instance, the government recently have made a mistake when they launched the Affordable Health care website. Before launching the website, they did not consider the volume of the people. It can be said that the government did not establish its information strategy effectively. Another example of an ineffective IS strategy is Amazon’s website crash on a prime day (Yuliansyah, Gurd, & Mohamed, 2017).

On a prime day a few years back the Amazon.com website crashes due to heavy traffic on the website. It is quite clear that Amazon has not created there IS strategy accurately prior to the prime day. If the organization established its IS strategy accordingly than the organization website won't face issues on a prime day. The effective IS strategy not only affects the operations of the business but also impacts the reputation of the company as well. Ultimately the revenue and profit of the organization will decline. The organizational strategy is also as important for the company as the IS strategy (Yuliansyah, Gurd, & Mohamed, 2017).

The organizational strategy includes the hiring, organizational structure and the processes through which various business activities are done. The significance of organizational strategy can be understood from the fact that the operations of the company can get affected if the organizational strategy is not being established accurately. For instance, Walmart's organization’s employees faced issues because of the corporation's unable to provide good working conditions and HR practices. Due to this many employees leave the organization. It is clear from the above example that organizational strategy has huge significance for the corporation and in order to achieve success all the components of the strategy triangle should be given equal importance (Stat, 2018).

References of Why Is It Important for Business Strategy to Drive Organizational Strategy and IS Strategy? What Might Happen If the Business Strategy Was Not the Driver?

Irwin, N. (2016). Walmart’s lesson: Treat employees well, and the company does well. Retrieved from https://www.therecord.com/news-story/6932197-walmart-s-lesson-treat-employees-well-and-the-company-does-well/

Stat, N. (2018). Amazon’s website crashed as soon as Prime Day began. Retrieved from https://www.theverge.com/2018/7/16/17577654/amazon-prime-day-website-down-deals-service-disruption

Yuliansyah, Y., Gurd, B., & Mohamed, N. (2017). The significant business strategy in improving organizational performance. Humanomics, 33(1), 56-74.