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This paper develops a model for research and practice of strategic management of information technology. The model, termed the Strategic Alignment Model, is defined in terms of four domains of strategic choice: business strategy; information technology strategy; organization infrastructure and processes; and information technology infrastructure and processes -each with its constituent dimensions. The model is conceptualized in terms of two fundamental characteristics of strategic management: strategic fit (i.e., the interrelationships between external and internal domains) and functional integration (i.e., integration between business and functional domains). A set of propositions is developed based on this model with implications for research and management practice. Acknowledgements. The authors would like to acknowledge the contributions to this research made by Christine Bullen, Gary Getson, Charles Gold, Jim Sharpe, Cesar Toscano and other individuals who served on our academic and industry advisory panels. This research was funded by the IBM Corporation. Version prepared for inclusion in Thomas Kochan and Michael Useem (Editors), "Transforming Organizations" Oxford University Press (forthcoming, 1991). Our thanks to Tom Kochan and Michael Useem for their constructive comments on our previous drafts. Strategic Alignment A Model for Organizational Transformation — 3 Introduction As organizational transformation emerges as an important theme among both management scholars and practitioners, it is perhaps a truism that the organizations of the 1990s will be significantly different from those of the last few decades. While several factors have been argued to influence and propel the organizational transformation process, as the papers in this volume attest, a major force lies in the recent developments and capabilities offered by information technologies (I/T) -namely, computers and communication technologies. This is mainly due to the acceleration of power and capabilities of these technologies with corresponding improvement in cost-performance ratio in recent years (Scott Morton, 1990). Over the last few years, several different arguments have been offered to highlight the potential of I/T to influence competitive characteristics (see for instance, Keen, 1986; McFarlan, 1984; Parsons, 1983; Porter and Millar, 1985; Rockart and Scott Morton, 1984; Wiseman, 1985) as well as enable and shape business transformations, but there is a glaring lack of systematic frameworks to conceptualize the logic, scope and patterns of organizational transformation enabled by information technology (I/T). To help address this deficiency, this paper develops and presents a conceptual model with a set of propositions and management