Is there a prescription for strategic IT decisions?

Strategic IT decisions are complex and critical since they significantly influence an organisation’s growth and long-term survival. The large number of strategic IT failures reported in the media and academic literature indicate we have limited understanding of how to make optimal IT strategic decisions. More work is needed to understand the factors influencing strategic IT decision processes and outcomes. By exploring the key influence factors presented in this case study, students will be more informed about how senior decision makers can better manage strategic IT decision-making processes. This improved understanding will help reduce project cost overruns and enable organisations to realise the expected benefits of large-scale IT investments. This teaching case study provides insights into the key factors that influenced the strategic IT decision-making process at a major Australian pharmaceutical company (PHARMA). A decision was made under pressure to upgrade the existing enterprise resource planning system at PHARMA in order to meet an increased need for demand forecasting and planning. The implications of strategic IT decision-making theory and practice are discussed in relation to this case study.