scholarly journals An Intangible-Asset Approach to Strategic Business-IT Alignment

Systems ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 17 ◽  
Author(s):  
Miguel Tejada-Malaspina ◽  
Alberto Jan

The correct use of information technology (IT) in business is a longstanding critical issue due to the competitive advantages and performance that IT generates when it is managed strategically and correctly aligned with a business’ strategies and processes. A conceptual model is presented to investigate the effects of intangible assets and organizational capabilities on business-IT strategic alignment. Social networks between business and IT executives conform to relational capital that permits the creation of combinative capabilities; these capabilities encourage the transfer, integration, learning, and strategic use of business and IT executives’ knowledge, and affect the level of strategic business-IT alignment. This combination of social-network characteristics and organizational capabilities in order to generate strategic business-IT alignment is new.

Author(s):  
A. J. Gilbert Silvius ◽  
Steven De Haes ◽  
Wim Van Grembergen

A key success factor for a successful company in a dynamic environment is effective and efficient information technology (IT) supporting business strategies and processes. Organizations that successfully align their business strategy and their IT strategy outperform their non-aligned peers (Chan et al., 1997). In recent surveys IT executives consistently name IT to Business alignment their top-concern. The alignment between business needs and IT capabilities is therefore still a prominent area of concern. This paper aims to contribute to the understanding of the alignment challenge by exploring the impact of (national) cultures on the maturity of business / IT alignment (BIA).The paper relies on Hofstede’s framework of cultural dimensions (Hofstede, 1980) to understand the concept of national culture. After a brief introduction on BIA and Luftman’s framework for measuring BIA maturity (Luftman, 2000), the authors analyze the influence of Hofstede’s cultural dimensions on the variables of BIA maturity. This conceptual exercise is than tested in a small-scale empirical exploration by comparing BIA maturity scores of Belgium and Dutch financial institutions. The results support a potential effect of national cultures on BIA maturity, especially in ‘governance maturity’ and ‘skills maturity’, but not all expected results are confirmed.


Author(s):  
Kevin Johnston

The alignment of business strategy with IT strategy has been a concern of chief information officers (CIOs) (Berkman, 2000; Croteau & Bergeron, 2001; Crowley, 2001), chief executive officers (CEOs) (Armstrong, Chamberlain, Moore & Hart, 2002; Mesoy, 1999), academic researchers (Henderson & Venkatraman, 1999; Reich & Benbasat, 2000; Tallon & Kraemer, 2000), and research companies (Broadbent, 2000; Croteau & Bergeron, 2001; Meta Group, 2001) since the age of vacuum tubes. In surveys (Mesoy, 1999) of CIO concerns, alignment has consistently been rated as a major issue. A Cutter study reported that business-IT alignment was “the number one problem facing IT” (Crowley, 2001).


Author(s):  
Fernando Belfo ◽  
Rui Dinis Sousa

Business-IT alignment has been on the top of the concerns of IT executives for many years and how to assess it has been under research. Among many proposals, one of the best known and cited in the literature, showing some relevant empirical work, is the Luftman’s Strategic Alignment Maturity (SAM) categories assessment. Taking it as a framework, seven other proposals are examined using SAM categories as dimensions of business-IT alignment: communications, competency/value measurements, governance, partnership, technology scope and skills. Except for one proposal revealing a tactical level approach, this review shows that business-IT alignment assessment has been studied essentially at the strategic level. Among the examined dimensions across the several proposals, governance is the best covered one while the human resource skills dimension is considerably neglected. Having still room for improvements, either in the governance or the technology scope dimensions, the SAM assessment seems a well balanced instrument. The empirical work already found on SAM provides a good starting point to get an acceptable validated instrument. However, if in terms of content validity, SAM is one of the most promising instruments, there is still much work to do on what concerns its operationalization. Future research should strive for a rigorous, strong instrument on every component of construct validity, namely, the convergent, discriminant and nomological components.


Author(s):  
Pablo Alfonso Gajardo ◽  
Ariel I. La Paz

Although the concept of business-IT alignment was once considered one of the most important concerns of organizations, in terms of IT administration, the attention it has received has decreased significantly over the years. This article postulates that strategic alignment initiatives still have the same relevance—in particular for non-IT companies—which means that digital transformation strategies should consider the strategic alignment as a critical issue for their success. Therefore, the persistent relevance of this concept and the need to measure it with updated instruments capable of assessing the degree of maturity reached and feeding back the results to the organizations remains a key topic in IT administration. Based on an updated instrument, adequate for a digital framework, our study surveyed a sample of mostly large Chilean companies. The results obtained reveal the importance to count with an improved model that captures the changes this new digital scenario imposes.


Author(s):  
Juhana Salim ◽  
Esmadi Abu Abu Seman

Business and Information Technology (IT) alignment involves applying IT in an appropriate and timely way, in harmony with business strategies, goals and needs. Prior research argues that achieving alignment contributes immensely to ensuring that IT investments improve organisational performance. One important issue in business–IT alignment study is the absence of alignment. Findings indicate that there are many factors/variables that consistently enhance business-IT alignment. By identifying factors to achieve business-IT alignment, the problem on the absence of alignment could be addressed. Due to the complexity of business-IT alignment, there is possibility that successful alignment focuses on managing specific alignment dimension by investigating factors that encourage particular dimension. Past studies have shown the relationship between business-IT alignment and organizational performance. However, only few researchers tried to relate between the factors with organizational performance. Literature on alignment discovered that there seems to be confusion in clarifying the business-IT alignment concept. Based on this gap, this paper examines problem and issues on alignment, identify, analyze and discuss factors affecting alignment, then categorize the constructs identified into dimensions and propose a model for alignment in universities. The study contributes to the formation of a theoretical model influencing alignment dimension that has impact on organizational performance. The model is important to provide empirical evidence that confirms the importance of categorizing factors into dimensions in achieving business-IT alignment and their influence on universities’ performance.


Author(s):  
Pablo Alfonso Gajardo ◽  
Ariel I. La Paz

Although the concept of business-IT alignment was once considered one of the most important concerns of organizations, in terms of IT administration, the attention it has received has decreased significantly over the years. This article postulates that strategic alignment initiatives still have the same relevance—in particular for non-IT companies—which means that digital transformation strategies should consider the strategic alignment as a critical issue for their success. Therefore, the persistent relevance of this concept and the need to measure it with updated instruments capable of assessing the degree of maturity reached and feeding back the results to the organizations remains a key topic in IT administration. Based on an updated instrument, adequate for a digital framework, our study surveyed a sample of mostly large Chilean companies. The results obtained reveal the importance to count with an improved model that captures the changes this new digital scenario imposes.


Author(s):  
A.J.Gilbert Silvius ◽  
Steven De Haes ◽  
Wim Van Grembergen

A key success factor for a successful company in a dynamic environment is effective and efficient information technology (IT) supporting business strategies and processes. Organizations that successfully align their business strategy and their IT strategy outperform their non-aligned peers (Chan et al., 1997). In recent surveys IT executives consistently name IT to Business alignment their top-concern. The alignment between business needs and IT capabilities is therefore still a prominent area of concern. This paper aims to contribute to the understanding of the alignment challenge by exploring the impact of (national) cultures on the maturity of business / IT alignment (BIA).The paper relies on Hofstede’s framework of cultural dimensions (Hofstede, 1980) to understand the concept of national culture. After a brief introduction on BIA and Luftman’s framework for measuring BIA maturity (Luftman, 2000), the authors analyze the influence of Hofstede’s cultural dimensions on the variables of BIA maturity. This conceptual exercise is than tested in a small-scale empirical exploration by comparing BIA maturity scores of Belgium and Dutch financial institutions. The results support a potential effect of national cultures on BIA maturity, especially in ‘governance maturity’ and ‘skills maturity’, but not all expected results are confirmed.


2011 ◽  
pp. 1915-1924
Author(s):  
Paul L. Drnevich

The rapid evolution of IT has enabled new organizational capabilities to manage knowledge and information. Given this evolution, IT systems for enabling the acquisition, processing and dissemination of knowledge may present unique opportunities, if effectively leveraged, for firm competitive capabilities. This chapter examines some of these uses of IT; offers a framework to view firm activities as knowledge Inflow, Intraflow and Outflow processes; and explores possible performance implications of some potential IT-enabled capabilities. Such IT enablement challenges some existing views of strategic management theory and suggests that theory may need to be reexamined and extended to handle some implications arising from advances in IT systems. We explore potential implications of IT-enabled capability and argue that through adopting, integrating and effectively leveraging these capabilities, firms may have the opportunity to enhance their competitive advantages and performance.


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