The Nature of Investment in Information Infrastructure - Essay Example

However, the degree of success in implementing and investing in IT depends on how the fit between the Technology side and the business side of the overall strategy of the organization. However, this alignment of the IT with the business strategy can be accomplished through the use various IT strategic alignment models. This case analysis will use the Scott Morton Alignment model which is considered as more simple yet powerful model by allowing the use of IT as a strategic driver of change. The use of this model will allow us to view the Metalco from the perspective of strategy, structure, management processes, technology and roles and skills and how they fit into the overall strategy of the organization.

The proposed SAP Project will cost Metalco around $23.500 millions with tangible savings in labor cost of 10 million dollars over the period of 5 years with increasing margins to the tune of $ 5 million over the period of 5 years. However, the major benefit of this proposed project wills easy manageability of the operational activities of the traditional systems at the Metalco is more directed at generating the reports rather than managing the operational activities.Metalco is one of the largest enterprises in Australia having a very rich and old history.

Established in 1933, Metalco is engaged in the production of low value-added mineral products. The main activities of the organization are discovery, development, production as well as processing minerals including petroleum. Metalco has an asset of AUD 6.00 Billion whereas the revenue figures achieved in 1995 was well over. A complete description of the corporate history, as well as the corporate structure, can be found in exhibit A.Metalco has largely remained a very conservatively operated company with little or no focus on aligning the various independent information.