Case Study: Global Change Management Plan by DHL

Case Study

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This is a case study on global change management plan by DHL. DHL is using strategic alignment concept as pointed out by Hendersen and Venkatraman (1999). According to their theory IT spending can not be realized or it can not be justified in its true sense till IT spending and strategy and the business strategy has to be integrated.

1. 1. What Global IT strategy is DHL using as mentioned in the article?

DHL is using strategic alignment concept as pointed out by Hendersen and Venkatraman (1999). According to their theory IT spending can not be realized or it can not be justified in its true sense till IT spending and strategy and the business strategy has to be integrated. This strategic alignment is possible though strategic fit and functional integration. According to them the strategic fit is achieved both through internal and external domains which have to be separated.  And there is a need to separate the internal and external domains. The functional integration is again divided into strategic integration and operational integration. Strategic integration is concerned with the external component the integration of business and IT strategy, while operational integration is concerned with internal domains like the organizational infrastructure and processes.

DHL’s restructuring of its organizational structure and system is based on this strategic alignment model presented by Hendersen and Venkatraman (1999). They have changed the centralized systems of the supercenters and have divided the supply side of the IT from its demand side. This is the division of IT into internal and external domain. And for the integration of the IT spending with the business strategy they have localized the EBIT or the demand CIOs who would focus on the demand management of IT. Thus the demand side of IT will be closely linked at the regional level and only a small group at the center would act as a facilitator for these EBIT managers.

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