Alpha largely ignored systems. It had a small, centralized group of IS personnel isolated from the business functions. Thus, a perception of information systems as non-strategic was accompanied by a centralized IS structure and an insourced IS function. Initially, business was good and Alpha grew rapidly. However, in 1986, Congress passed the Tax Reform Act, which dramatically altered the economic advantage of computer leasing. Yet Alpha continued to operate as if the environment had not changed. It also failed to recognize the sharp decline in mainframe prices due to the advent of personal computers. Alpha's economic position became problematic." Perhaps these problems should not have been surprising considering the low alignment between business and IS strategies,