IPA IP 2020 Question 23

An information systems strategy is created on the basis of a business strategy — IT exists to carry out the business strategy.

The business strategy sets the company's goals, target markets and priorities. The information systems strategy is then drawn up from it: the target state of the company's information systems, the IT investment and its priorities, and IT governance, so that systems help achieve the business goals. Individual system plans follow the information systems strategy in turn. Both are decided at the management level with the CIO, not by departments on their own.

Answer (b)

Why not others:

• •(a) — strategies made independently lead to IT investment that does not support the business and to systems the business does not need
• •(c) — reverses the order: the business strategy comes first, and IT serves it; new technology can open options for the business, but it does not replace the business strategy as the starting point
• •(d) — treats them as departmental plans; both are company-wide strategies owned by top management, and the information systems strategy must be consistent with the business strategy whoever drafts it

Key rule: Business strategy → information systems strategy → individual system plans; each level must be consistent with the one above it.

System Strategy · AI-written, may contain errors