Strategic Alignment of IoT

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Strategic Alignment of Internet of Things (IoT) with Organizational Goals


The world is going through a sensational fast transformation from seclusion systems to a universal internet-based enabled objects with the ability of networking with each other and producing data that can be analysed to extract valuable information. This immensely interconnected global network structure known as Internet of Things (IoT) will enhance people’s lives, improve business and government productivity and efficiency. The expanding connectivity provided by the Internet of Things has increasingly supported business opportunities through increased data access, inventory management process, continuous customer engagement, efficiency and productivity, rapid and easy accessibility and so on.  This paper explores and critically evaluate the literature on Internet of Things focusing on strategic alignment of IoT with organisational goals, external and internal Information Systems (IS) and business environment.


The Internet of Things (IoTs) is aimed at the unification of everything that is in the world under the same infrastructure thus giving us dominion of the things that are around us, this current study discusses the concepts of the Internet of Things in the context of the information technology sector? via a systematic review of the scholarly research of more than one professional discussions with the experts and online databases. The primary aim of this paper is the provision of an overview of the Internet of Things and necessary technology in their usage (Madakam, S, Ramaswamy, R., & Tripathi,2015).

The development of the IoTs been primarily brought about by the requirements of the large business organizations that have profited significantly from the insight and the predictability of the way people lead their lives. This has been managed by the potentiality to pursue all the devices through the chains of the commodity in which they have been embedded (Lockamy III, A, & Smith,1997).

The power to be able to program and track devices has enabled the organizations to become efficient thus speeding up processes, reducing error and preventing theft. The power to be able to program and track devices also incorporates complexity and flexibility in the systems of the organization through the Internet of Things (IoTs). This means that the Internet of Things has become the technological innovation that has depended on the dynamic’s technical revolution in many relevant fields, from the wireless sensors to the Nano automation. This, therefore, see the companies tag each of their gadgets for identification, automation, monitoring, and control (Berge, Z. L., & Smith, D. L,2002).

The Information System (IS) governance in IoTs Supply Chain Networks in an organization

Internet of Things (IoT) plays a significant role in the 21st century global supply chain design, workings and performance. Any kind of business whether small or big must have a system that can collect, process, store and share data. Currently, companies make use of the current technology in the streamlining and automation of the sensor technology that operate within diverse working atmosphere. The information systems are now playing a significant role in the processing of the data and the making of the decisions. This means that when correctly used, they can positively impact the general performance and the revenue of an organization (Brancheau, J. C,1987).

An Information System is defined as the components sets that work together in the managing of the processing and the storage of data (Suo, H., Wan, J,2012). Its role is supporting the main aspects of an organization like the keeping of the records, making of the decisions, analysis of data and the communication. The companies have made use of this information in the improvement of the operation of the business, the making of the strategic decisions and the gaining of a competitive edge.

The Information and Resource Management Systems for Internet of Things

In information system the embedded devices and objects working under IoT implementation are resource constrained. This means that this is a result of the high number of the elements of the heterogeneous networks that have interacted and worked under the based IoT information systems (Salimian, H., Khalili, S,2012). This, means that there is a need for management of resource that facilitates the smooth running of the operations of IoT. During the IoT implementation, it is significant to meet the obstacles that are raised during management and sharing of resources in information systems.

The resources are managed by the implementation of the protocols, steps or techniques that are needed in the enhancement of scalability, reliability and stability in the IoT operations across various technologies domain (Brancheau, J. C., & Wetherbe, J. C,1987). This unique issue is an effort that opens up the new interest areas for the scholars in the resource management domain during the IoT operations that is based on information systems. This has led to the adoption of the IoT technology solutions by many of the companies thus improving their existing systems (Zairi, M,1995).

The modern technology has boosted the performance and the productivity of a company. The organizations worldwide have relied on the Information System in the research and the development of the new ways in the generation of the revenue, engaging their customers and the streamlining the tasks of the time-consuming. With Information Systems, the business has taken less time and money while making smarter decisions. The internal department of a company like marketing and sales can communicate better and share information more efficiently. The employees are in a position to focus on the main business aspects rather than spending hours collecting data and undertaking the manual work (Berge, Z. L., & Smith, D. L,2002).

Analyzing the Tension between the Supply and Demand in IS Management

Both supply and demand are crucial to the activity of the economy as a whole. The two have influenced one another and they impact prices of the consumer goods and the services within an economy. Information Technology addresses the key issues of tension between supply and demand in IS Management by relating the rapidly changing supply (IT advances) versus rapidly changing demand (business turbulence) that gives a tradeoff of Commitment against Flexibility. As demand increases, the supply that is available decreases (Koreshoff, T. L., Robertson,2015). Due to the coming up of Information technology, the businesses had to change their model of the industry thus converting their selves towards the model of the business information technology taking advantage over their competitors. This has led to the analysis of the information technology role in strategic information system and model of the business. Michael E Porter came up with a simple theory for assessing and evaluating the competitive strength and position of a business organisation based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market.

The Five Forces by Porters’ Model

The threat of new entrants: There is an increased threat of new companies from the internet which permits corporations to enlarge geographically and companies which have logistics systems to have access to foreign markets. The concept of brick and mortar store from the coming up of the internet changed

Bargaining power of suppliers: The internet made the finding and comparing suppliers by business possible. The power of suppliers to bargain reduced when the internet emerged. Information technology also made the lockup supply chain by companies through the information and internet systems and produced an increase in the cost of switching.

Bargaining power of buyers: The empowerment of the internet for a consumer to look for details about a product, services, and corporations. The cost of switching and buyers is reduced by the access to information thus finding the best prices quickly, and the increase in bargaining power is also achieved by the information technology.

Threat of substitutes: The internet threatens organizations that are based on information in that its information takes the pace of material goods such as music, software, and books.

Rivalry among existing firms: Differences between organizations are reduced by the internet which allows companies to access information. Michael Porter says that stiff competition moves to the prices while the agencies based on the internet changed their focus from products that are specialized to others such as the Amazon which was focused on selling books only but now have a wide range of products besides from books that they sell

Key Issues in IS Management for Internet of Things

The current state of the businesses run on technology. The interaction of each client and the internal procedure have relied heavily on the systems of the computer that have powered everything. The management of Information Systems has encompassed the numerous technologies that have existed in the companies’ today’s as well as the personnel that is required in managing it all. There are common problems that include failure to strategize, meeting the needs of the organization, the hiring and the retailing of the right employees and the integration of all the technologies (Brancheau, J. C., & Wetherbe, J. C,1987).

The following are critical issues in IS Management of the Internet of Things

Lack of Strategy:  Most of the well-known issues of IS management can be traced back to a lack of comprehensive strategy. The IS managers are well aware of the many tools that are available in the gathering of the data on their network, but then there has been a challenge in putting that information into use.  Currently, the IS management leadership have often sat alongside other business leaders that have worked together in ensuring that the technology that is being used supports the overall mission of the company moving forward (Koreshoff, T. L., Robertson,2013).

Meeting the needs of the Organization: The IS Management plays a crucial role in organizations, with the professionals relying on the technology or each aspect of operations. Sales and marketing rely heavily on customer relationship software in the tracking of the interaction of the customer. This is through the job satisfaction and the recognition of the employees.

Attracting and retaining the top talent: Even though the number of businesses have increased and has shifted to the software of cloud computing, the shortages of IT talent has continued to affect the market. Even with the technology of the cloud, nevertheless, many of the organizations have found that they still need a specialist in IS management staff to ensure the business meet its goals.

Keeping up with the change: In the world of IT, there is nothing that will remain the same for long. From one period to another, innovation means that there is a need for the upgrading of the software. This, therefore, says that for the company to remain competitive, the businesses have to keep up with the investing in the software that will give them an edge. Currently, the managers have to look at new systems while ensuring that they are productive.

Integration of the new technologies: Although there are many acceptable and effective solutions to businesses, the businesses will have to inevitably find that they have different software that is operating at the same time.

The Transformational Impact of IS for Internet of Things

The IS has transformed the leadership styles that is valued for the stimulation of innovation and worker performance. The employees have perceived a high degree of the transformational leadership a have experienced well-being (Salimian, H., Khalili,2012).

Preparing the Systems of IT and the Organizations for Internet of Things

There are explanations about the potential road map that the companies need to update existing architectures of IT and models of operation to accommodate the growth and the smart devices support. As the IoT has continued to gain the momentum, many of the companies have made an effort in determining how best they can update the already existing architectures of IT and the operations with the aim of capitalizing on this kind of trend.

According to earlier analysis, the efficiencies of the networking and the creation of the opportunities by the IoT have led to the change of the world economy. Thus, analysis suggested that even though the consumers’ application has seemed to be on the front adoption edge, almost seventy percent of the projected figure of the economy will have to come from the sensor use of technology (Madakam, S., Ramaswamy,2015).

Key areas of concern with respect to how accurately the opportunities of the business can be assessed in the IoT and how the technology stack can be built is the hardware layers, application of the software, platforms of operation and the network that makes up the architecture of IT. This will have to offer the support to the current and the future of applications IoT and the devices and whether the organizations should be able to prioritize technologies (Robertson, T., & Leong,2013). The transition from an old enterprise architecture of IT to the one that has been optimized with the IoT will not be an easy task.

The company’s elements of current technology stacks may need to be redesigned so that it can support the billions of the processing events that are independent annually from the millions of merchandises, the devices, and the application. Since the networked devices are on, the organization, therefore, needs to be in a position to react to customer and the requests of the system in real time. This will mean the development of the software will need to be agile and its delivery thus becomes a crucial competency.

The connectivity will also be required as it will offer collaboration across IT and the units of the business, which is silted traditionally. Furthermore, the companies have been in a position to be able to secure and efficiently collect, analyze and the data store that has emerged from the refined architectures of IT (Salimian, H., Khalili,2012).

There are numerous areas that companies will need to focus on in the addressing these kinds of challenges; thus companies have participated in the setting of the industrial standards. There is also an exploration of the approaches of the modular what? to the application of the digital design and the maintenance that has altered the collection of the processed security and the protocols of the security. There is also the reconsideration of how to manage the already existing alongside the newer applications of IoT and the gadgets.

Defining the Effective Strategy of IoT

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