Strategic Alignment and IT-Enabled Value Creation

2012 ◽  
pp. 141-184
Keyword(s):  
Value Creation ◽  
Dynamic Process ◽  
Strategic Alignment ◽  
It Strategy ◽  
Alignment Method ◽  
Alignment Maturity

This chapter describes the principles and methods for producing a business-aligned IT strategy to enable value co-creation with customers. In particular, the authors detail the alignment method and the underlying dynamic process of alignment as they form the critical disciplines that practitioners must master. The chapter also describes the Strategic Alignment Maturity (SAM) model by which management can gauge and continuously improve their organization’s strategic alignment capabilities. Finally, the authors discuss in detail the various methods for IT-enabled value creation.

scholarly journals Managing and Delivering Information Technology Value

2011 ◽  
Vol 2 (1) ◽  
pp. 72
Author(s):  
Yuliana Lisanti
Keyword(s):  
Information Technology ◽  
Value Creation ◽  
Business Strategy ◽  
Primary Objective ◽  
Business Value ◽  
It Strategy ◽  
Value Innovation ◽  
Capability Maturity ◽  
It Capability ◽  
It Organization

Investment Information Technology (IT) has always been a primary objective of the business which is expected to provide value to businesses through its role as a competitive advantage and the creation of innovation. However, it is ot easy to measure how much value is successfully created, or determine whether the IT strategy is aligned with business strategy, or find out if the IT organization has a strategy that focuses on creating business value. Innovation Value of Institute (IVI) introduces a new concept known as the IT Capability Maturity Framework (IT-CMF) which can help IT organizations to align the business vision with the IT vision so that IT strategy could focus on value creation . the IT-CMF implementation which begins with the assessment of the maturity of IT organization can provide an overall picture, so that organization can prioritize the development of appropriate IT investments to support the value creation for the overall business. 

Assessing Business-IT Allignment Maturity

2011 ◽  
pp. 99-128 ◽  
Author(s):  
Jerry Luftman
Keyword(s):  
Information Technology ◽  
Strategic Alignment ◽  
Strong Support ◽  
Senior Management ◽  
Working Relationships ◽  
Strategic Choices ◽  
It Alignment ◽  
Business Functions ◽  
Alignment Maturity ◽  
Relationship Of

Strategic alignment focuses on the activities that management performs to achieve cohesive goals across the IT (Information Technology) and other functional organizations (e.g., finance, marketing, H/R, R&D, manufacturing). Therefore, alignment addresses both how IT is in harmony with the business, and how the business should, or could, be in harmony with IT. Alignment evolves into a relationship where the function of IT and other business functions adapt their strategies together. Achieving alignment is evolutionary and dynamic. It requires strong support from senior management, good working relationships, strong leadership, appropriate prioritization, trust, and effective communication, as well as a thorough understanding of the business and technical environments. The strategic alignment maturity assessment provides organizations with a vehicle to evaluate these activities. Knowing the maturity of its strategic choices and alignment practices make it possible for a firm to see where it stands and how it can improve. This chapter discusses an approach for assessing the maturity of the business-IT alignment. Once maturity is understood, an organization can identify opportunities for enhancing the harmonious relationship of business and IT.

Enterprise and Technology Architectures

2011 ◽  
pp. 167-221
Author(s):  
Eng K. Chew ◽  
Petter Gottschalk
Keyword(s):  
Business Strategy ◽  
Enterprise Architecture ◽  
Strategic Alignment ◽  
The State ◽  
State Change ◽  
It Strategy ◽  
Investment Portfolio ◽  
Future State ◽  
The Future

The role of integrated enterprise architecture in IT strategy and strategic alignment is explained in Chapter V. This chapter describes in detail the principles and methods for developing a business-aligned enterprise architecture that will define the roadmap to attain the future state of the enterprise envisioned by the business strategy and guide the IT investment portfolio necessary for the state change.

Strategic Alignment for Business Value Creation

2011 ◽  
pp. 131-166
Author(s):  
Eng K. Chew ◽  
Petter Gottschalk
Keyword(s):  
Business Strategy ◽  
Strategic Alignment ◽  
Good Method ◽  
Specific Productivity ◽  
It Strategy ◽  
It Alignment ◽  
Full Life Cycle ◽  
Strategy Process ◽  
Explicitly Correlated ◽  
The Individual

Chapter IV defines the macromodel for achieving business/IT alignment. This chapter defines the detailed methodology for each step of the IT strategy process. First, the business strategy process must be methodical and able to clearly show the linkage between corporate strategic intents and the respective specific business functional plans for realizing the intents. For example, for a specific productivity goal defined for the corporation, the respective initiatives planned for sales and marketing, and those for supply chain management must be clearly linked and explicitly correlated in a “cause-and-effect” manner. A good method invented by Norton and Kaplan called strategy map is an effective tool for this purpose. This chapter reviews the basic principles of IT strategy. It briefly discusses various models used to analyze or describe disparate parts of strategic alignment. These strategic alignment models are contrasted with our end-to-end alignment model for defining and executing business-aligned IT strategy. It shows that our model has integrated all the individual disparate alignment elements proposed by these models. Further, it shows our model has addressed some key requirements which have either not been considered or only partially considered by some of these models. The main strengths of our model compared to previous work are twofold: (a) it addresses all alignment elements in an integrated fashion to make them meaningful and useful for practitioners; and (b) it addresses the full life cycle of strategic alignment from direction setting to strategic outcome monitoring and ongoing feedback loop for self-adjusted alignment (aided by architecture principles and IT governance).

scholarly journals PENGUKURAN TINGKAT KEMATANGAN KESELARASAN STRATEGI TI DAN BISNIS (STUDI KASUS UNIVERSITAS XYZ)

2019 ◽  
Vol 4 (1) ◽  
pp. 33-40
Author(s):  
Hanhan Maulana
Keyword(s):  
Strategic Alignment ◽  
Maturity Model ◽  
Alignment Maturity

Universitas XYZ mengedepankan Teknologi Informasi sebagai dasar operasinya. Dengan kinerja TI yang baik diharapkan dapat meningkatkan kinerja universitas sehingga sasaran dan tujuan perusahaan dapat tercapai. Akan tetapi sampai saat ini penerapannya belum sepenuhnya dapat mendukung proses bisnis yang ada, dan belum dapat memberikan kontribusi yang maksimal terhadap bisnis. pihak manajemen (rektorat) juga ingin mengetahui dan memastikan apakah inisiatif-inisiatif TI yang sudah, sedang atau akan dilaksanakan sudah sesuai dengan strategi organisasi. Universitas XYZ seharusnya menerapkan TI tidak hanya sebagai pendukung kegiatan bisnis akan tetapi menerapkannya sebagai bagian dari strategi bisnis. Pada Penelitian ini, dinilai kesesuaian stretegi TI terhadap bisnis di Universitas XYZ menggunakan SAMM (Strategic Alignment Maturity Model) diperkenalkan oleh Luftman, model SAMM dibuat berdasarkan pengembangan dari 12 komponen pada model SAM Henderson dan Venkatraman dan hasil penelitian Luftman yang mengidentifikasikan faktor-faktor yang menjadi pemicu (enabler) dan penghambat (inhibitor) terhadap keselarasan antara bisnis dengan TI.

scholarly journals STRATEGIC ALIGNMENT MATURITY AND ITS EFFECT ON ORGANIZATIONAL PERFORMANCE OF JAPANESE SMALL AND MEDIUM ENTERPRISES

2018 ◽  
Vol 4 (1) ◽  
pp. 42-50
Author(s):  
Michiko Miyamoto
Keyword(s):  
Organizational Performance ◽  
Survey Data ◽  
Strategic Alignment ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Short Term ◽  
Firm Level ◽  
Business Alignment ◽  
Alignment Maturity ◽  
The Relationship

Purpose:Using a conceptual framework of Sledgianowski and Luftman (2001), this paper empirically investigates how Japanese SMEs view their Strategy Alignment Maturity, Short-term Linkage, and Organizational Performance. The author examines a theoretical framework for assessing strategic alignment maturity by using a survey data of Japanese small and medium companies. The relationship between strategic alignment maturity and the mutual understanding of business and IT objectives between business and IT executives is analyzed. Methodology: The methodology of this study is quantitative. Three hundred fifty-four (354) Japanese firm-level data collected have beenanalyzed using structural equation modeling. Main Findings:The results show that factors associated with IT-Business Alignment Maturityof Japanese SMEs are statistically significantly positively related to organizational performance. However, those are statistically significantly negatively related to Short-term Linkage.Although the linkage of information system plans with organizational objectives (business plans) are positively related, this study implies that the linkage of information systems and each factor of IT–Business Alignment Maturity is rather weakas previous empirical literature suggested. Applications:This study can be applied to the firm-level analyses where IT-Business Alignment Maturity and Short-term Linkage are in issue. Novelty/Originality:The author examines the relationship between strategic alignment maturity and organizational performance by using a survey data of Japanese small and medium companies.

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