The need for a link between information technology use and organizational strategy has been identified and discussed for a number of years. The thrust of this work argues that the motives for investment in IT should derive from firm objectives and, more particularly, from the strategic plan which the organization wishes to pursue. This paper argues that, often, mere lip service is paid to the strategic nature of IT. Further, strategy justification has become a tool for securing investment in IT by circumventing established organizational policy on investments. Many IT investments labelled "strategic" appear to be operational in nature. This paper discusses the nature of strategy and relates it to the literature on information technology as a strategic tool. The extent to which the relationship between IT and strategy has altered over recent years is subsequently investigated. Evidence of IT investment activities and the returns available to investing organizations are reviewed and the use of IT as a strategic weapon analyzed. The conclusion seeks to draw together the disparate strands in the IT-strategy arguments.
Powell, Philip, "INFORMATION TECHNOLOGY AND BUSINESS STRATEGY: A SYNTHESIS OF THE CASE FOR REVERSE CAUSALITY" (1992). ICIS 1992 Proceedings. 40.