Definition Strategic Grid for IT

The Strategic Grid for IT from McFarlan, McKenney & Pyburn (’83) is a tool that can be used to assess the current strategic impact of information systems (low, high) versus the potential strategic impact of information systems (low, high). Combining the 2 views in a matrix results in 4 possible combinations:

1. Support (low, low). IT has little relevance and simply supports existing processes
2. Turnaround (currently low, high in the future). IT will be a key feature of future strategic planning.
3. Factory (currently high, low in the future). It is important in terms of day-to-day operations but it is not felt that there are any major IT developments on the horizon that will fundamentally alter the nature of the business.
4. Strategic (high, high). The role IT strategy plays in the formulation of the overall business strategy is critical.

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