Measuring Business-IT Alignment in a Digitally Revolutionized Economy

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):  
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.


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):  
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):  
Nabyla Daidj

Digital transformation is at a very early stage. Digital transformation has several impacts on business, on organization and process and raises several questions. Over the years, the aims of strategic fit and IT-business alignment have remained constant but the environment in which companies operate has changed significantly becoming more dynamic, very competitive and global. This chapter attempts to analyse how the digital transformation could affect more specifically strategic and IT-business alignment.


Author(s):  
Nabyla Daidj

Digital transformation is at a very early stage. Digital transformation has several impacts on business, on organization and process and raises several questions. Over the years, the aims of strategic fit and IT-business alignment have remained constant but the environment in which companies operate has changed significantly becoming more dynamic, very competitive and global. This chapter attempts to analyse how the digital transformation could affect more specifically strategic and IT-business 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.


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 a unidirectional 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. 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 dominant business-driven alignment paradigms are seemingly not capable of accommodating 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 three-layer model of IM. Furthermore, different IM models as well as common IT governance frameworks are analyzed to find the extent to which they support this paradigm.


Author(s):  
Mohamed El-Mekawy ◽  
Ehsan Kaboudvand ◽  
Lazar Rusu

Business-IT alignment (BITA) has gained attention during the last decade. As a result, a number of theoretical models that can be applied as supportive tools for assessing different components of BITA have been developed. However, most of these efforts have been produced in different countries and they ignore the factor that’s subjected to change due to cultural contexts. The purpose of this paper is to investigate the impact of organizational culture on achieving BITA and influences its maturity. The research method and process follows the design science research and is done in three phases. First, an in-depth literature survey followed by a survey was carried out to identify and classify limitations of BITA attributes (based on Luftman’s strategic alignment maturity (SAM)) model and then, hypothesize the potential impact of organizational culture element (based on the Smit et al. model) on BITA attributes. Second, an empirical study is carried out to test the hypotheses in order to identify the limited BITA attributes based on organizational culture context. These attributes are further classified for proposing an extended version to the SAM model. Finally, the extended-SAM model is evaluated in 6 Swedish large and medium organizations to test its practicality for comparing its assessment with the assessment of the original SAM model.


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