For this assignment, use Karimi-Alaghehband and Rivard’s 2014 case study about Air Canada (Air Canada: Flying High With Information TechnologyLinks to an external site.), and Luftman and Kempaiah’s 2007 article, “An Update on Business-IT Alignment: “A Line” Has Been DrawnLinks to an external site..” The other readings for the unit will also be useful as you evaluate Air Canada’s strategies. Please respond to the following questions:
Identify Air Canada’s key strategy objectives. What are the strategic objectives and how do these objectives support the company’s competitive position?
Evaluate the IT-sourcing strategy of Air Canada from 1994-2011. The outsourcing approach and the IT department structure at Air Canada changed often between 1994 and 2011, when Air Canada signed its first contract with IBM and when the case study was written, respectively. What changes occurred and why do you think they occurred?
Assess the contribution of Air Canada’s IT strategies toward its overall business strategies. Managing the information resource of a firm focused both on “engaging with customers” and competing “more effectively on multiple levels against the low-pricing structures offered by low-cost carriers” entailed many challenges, which Air Canada’s CIO and her team had been addressing in multiple ways. How was Air Canada addressing these challenges in 2011?
Evaluate Air Canada’s business IT- alignment using Luftman and Kempaiah’s five-level maturity model (a theoretical model). Based on the five-level maturity model, at which level of alignment is Air Canada’s IT and business alignment? What challenges did Air Canada face in reaching this stage? What are the challenges now?
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