Business-Aligned IT Strategy Case Example

Author(s):  
Eng K. Chew ◽  
Petter Gottschalk

This chapter is about the “know-how” part of IT strategy and management best practices. This case example aims to illustrate a successful practical application of IT strategy principles and concepts by using a proven best practice from the industry. It can therefore be used as a guiding example of how to effectively develop and execute a business-aligned IT strategy. Kaplan and Norton’s (2004) strategy maps approach (described in Chapter V) has been chosen as the methodology for formulating the business–IT alignment strategy. To that end, the case study requires an in-depth study of the selected company’s business and IT strategies, from which a strategy map of the espoused business and IT strategies are “reconstructed” using the strategy maps principles. The reconstruction process follows the strategy maps methodology (Kaplan & Norton, 2004). The readers can thus adopt a similar approach to help them formulate or “reconstruct” their company’s business–IT alignment process and the resulting business-aligned IT strategy.

Author(s):  
Andy Weeger ◽  
Ulrich Haase

This paper offers a novel view on the business-IT alignment that takes on the three major challenges of prior research: theory, process and applicability. The theoretical deliberations and empirical data of a single in-depth case study shows that taking an activity theoretical lens offers a way to conceptualize the mechanisms, triggers and complexities of business-IT alignment that enhance our understanding of the alignment process and reveal important implications for practice. Building on activity theory and the notion of interrelated activity systems, the authors propose to view business and IT as two distinct, yet related activity systems that co-evolve over time. Moreover, they show that business-IT alignment can be understood as a process of continuous adjustments between the two collective, pragmatic, contested and situated activity systems of business and IT. Examining data spanning six years of transformation processes, the authors systematically increase their understanding of the processes and underlying mechanisms of aligning business and IT. These insights are facilitated via the conceptualization of the alignment as a process aimed to reduce contradictions and tensions within and between the linked activity systems of business and IT. The theoretical deliberations and empirical evidence show that AT provides a strong theoretical foundation and a robust framework that is able to facilitate rigorous process-oriented studies, whose findings can guide endeavors of detecting and approaching misalignments in practice.


2020 ◽  
pp. 1123-1146
Author(s):  
Yannick Bartens ◽  
Hashim Iqbal Chunpir ◽  
Frederik Schulte ◽  
Stefan Voß

Business/IT alignment can be considered a key challenge in IT governance and becomes especially important in IT-heavy and internet based business models. Recent discussions express the need for a bi-directional paradigm for internet based business models. IT governance frameworks support business/IT alignment but mostly follow a business-driven alignment paradigm. We identify characteristics of internet based business models and use the case of streaming to examine how the IT governance framework COBIT 5 can integrate these characteristics under consideration of a bi-directional business/IT alignment process. We reveal that requirements for streaming business models may not be fully covered by the framework. Based on a structural description of internet based business models and the COBIT 5 Goal Cascade, we explain these specific requirements and propose a possible integration of a bottom-up alignment. With this work we provide guidance in the challenge of business/IT alignment for internet based business models and show pathways for IT governance frameworks to better support a bi-directional alignment.


2020 ◽  
Vol 11 (2) ◽  
pp. 1-13
Author(s):  
Fadi Shammas ◽  
Guanjie Meng ◽  
Lazar Rusu

Business-IT alignment (BITA) continues to be a top management concern for the last ten years. Moreover, organizations mangers are still looking to understand the barriers between the status of alignment and misalignment. The barriers in BITA differ from a business area to another and particularly the authors have not found any research studies concerning the barriers in BITA in the manufacturing area in Sweden. Therefore, the research question is: What are the strategic, tactical, and operational barriers in business-IT alignment in a large company in manufacturing area? The research strategy is case study, and the data was collected through semi-structured interviews and also from company's internal documents and it was analyzed using thematic analysis. The findings of this study are a number of thirty barriers in BITA that includes six new barriers in BITA at operational, tactical and strategic level.


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).


2016 ◽  
pp. 681-707
Author(s):  
Taghred Alghaith

This chapter seeks a deeper understanding of stakeholder dynamics as a critical social component influencing IT strategy alignment. Perez-Batres et al. (2012) recognized the paucity of research on alignment dynamics, mainly stakeholder dynamics. Stakeholder theory, primarily Mitchell et al. (1997) identification model, is used to determine stakeholders' saliency throughout an ICT strategic project in a Saudi public hospital. However, stakeholder theory is static and does not help in tracing how saliency is gained and lost through time, and hence interpreting the influence on the alignment process. Therefore, this research utilizes the appreciative systems concepts of Geoffrey Vickers as dynamizing instrument to understand saliency dynamics and their influence. Results show that stakeholder dynamics resides in the nature of the relationship they pursue with each other.


2018 ◽  
Vol 56 (4) ◽  
pp. 908-921 ◽  
Author(s):  
Nicola Giuseppe Castellano ◽  
Roberto Del Gobbo

Purpose The purpose of this paper is to study how the design of a strategy map can be supported by measures expressing the customers’ perceptions about strategic factors and their related determinants. In particular, managers are provided with a fact-based test useful to revise prior knowledge and beliefs. Design/methodology/approach A case study is used to describe the adoption of the partial least squares path modelling (PLS-PM) approach to structural equation modelling in order to compare competing strategy maps and select the one that best fits customer perceptions. A focus group was organised to design the strategy maps, which were tested through a survey of 600 randomly selected resellers. Findings The empirical-based validation of a causal map by using PLS-PM may effectively stimulate a revision of managers’ collective perceptions about a phenomenon characterised by implicit knowledge, as in the case of customer needs. Research limitations/implications The case-study company operates in a business-to-business environment, and thus only the needs of direct customers have been included in the analysis. Final users’ needs should also be considered, even if different solutions are required for data collection. Practical implications The proposed approach provides a set of indicators which allow managers to identify strategic priorities, thus facilitating decision making and strategic planning. Originality/value In the strategic management literature, few attempts have been made to operationalise the complex and multidimensional latent constructs of a strategy map combining managers’ implicit knowledge and empirical validation in a “holistic” manner. The adoption of PLS-PM is relatively new in testing the accuracy of causal maps.


Author(s):  
Yannick Bartens ◽  
Hashim Iqbal Chunpir ◽  
Frederik Schulte ◽  
Stefan Voß

Business/IT alignment can be considered a key challenge in IT governance and becomes especially important in IT-heavy and internet based business models. Recent discussions express the need for a bi-directional paradigm for internet based business models. IT governance frameworks support business/IT alignment but mostly follow a business-driven alignment paradigm. We identify characteristics of internet based business models and use the case of streaming to examine how the IT governance framework COBIT 5 can integrate these characteristics under consideration of a bi-directional business/IT alignment process. We reveal that requirements for streaming business models may not be fully covered by the framework. Based on a structural description of internet based business models and the COBIT 5 Goal Cascade, we explain these specific requirements and propose a possible integration of a bottom-up alignment. With this work we provide guidance in the challenge of business/IT alignment for internet based business models and show pathways for IT governance frameworks to better support a bi-directional alignment.


Author(s):  
Hashim Chunpir ◽  
Frederik Schulte ◽  
Yannick Bartens ◽  
Stefan D. Voß

Business/IT (information technology) alignment can be considered as one of the key challenges of information management (IM). A vast majority of studies assumes an uni-directional alignment process that seeks to link the IT strategies to superior business objectives. However, there are plenty of market situations where the ability of an enterprise, or even entire branches, to adjust their business model to new IT developments is crucial to survive among their competitors. Not only under the umbrella of new buzz words like digital transformation and digital transition and their glaring examples such as media streaming, these competitive requirements have recently become more vital. Currently dominating business-driven alignment paradigms are seemingly not capable to accommodate these requirements to a full extent. In this chapter, the concept of bi-directional business/IT alignment is explained and defined by extending a well-known 3-layer model of IM. Furthermore, it is analyzed to which extent different IM models as well as common IT governance frameworks support this paradigm.


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