A Conceptual Model for Aligning IT Valuation Methods

2010 ◽  
Vol 1 (3) ◽  
pp. 36-54 ◽  
Author(s):  
J. Gilbert Silvius
Keyword(s):  
Conceptual Model ◽  
Business Strategy ◽  
Organizational Context ◽  
Strategic Alignment ◽  
Valuation Methods ◽  
It Alignment ◽  
Valuation Method ◽  
Business And It Alignment ◽  
The Relationship

The relationship between IT and value is complex and often disputed. Researchers and practitioners have created numerous models and valuation methods to capture this value. Although payoffs from IT investment are a function of strategic alignment, most of these models do not address the alignment of business and IT as a factor that influences or creates value. This paper explores the role of business and IT alignment in the valuation methods of IT assets and investments. It focuses on the impacts resulting from the use of IT assets, considering the function and nature of the impacts. It also explores the alignment of IT valuation and business strategy. The paper is concluded with the construction of a comprehensive selection model that provides guidance for aligning the IT valuation method with the specific characteristics, impacts and organizational context of an IT asset or investment.

A Conceptual Model for Aligning IT Valuation Methods

2012 ◽  
pp. 182-201 ◽  
Author(s):  
J. Gilbert Silvius
Keyword(s):  
Conceptual Model ◽  
Business Strategy ◽  
Organizational Context ◽  
Selection Model ◽  
Valuation Methods ◽  
It Alignment ◽  
Valuation Method ◽  
Business And It Alignment ◽  
The Relationship

The relationship between IT and value is complex and often disputed. Researchers and practitioners have created numerous models and valuation methods to capture this value. Although payoffs from IT investment are a function of strategic alignment, most of these models do not address the alignment of business and IT as a factor that influences or creates value. This paper explores the role of business and IT alignment in the valuation methods of IT assets and investments. It focuses on the impacts resulting from the use of IT assets, considering the function and nature of the impacts. It also explores the alignment of IT valuation and business strategy. The paper is concluded with the construction of a comprehensive selection model that provides guidance for aligning the IT valuation method with the specific characteristics, impacts and organizational context of an IT asset or investment.

scholarly journals The impact of environmental uncertainty on business–IT alignment: A study in Sri Lanka

2021 ◽  
Author(s):  
◽  
Amitha Padukkage
Keyword(s):  
Sri Lanka ◽  
Conceptual Model ◽  
Business Strategy ◽  
Strategic Alignment ◽  
Environmental Uncertainty ◽  
Managerial Practices ◽  
It Alignment ◽  
Knowledge Based ◽  
Alignment Process ◽  
The Impact

<p>Despite the widely held belief that organisational performance can be enhanced through the alignment of information technology (IT) and business strategy, alignment remains a top concern for IT and business executives. This means that the challenges of attaining strategic alignment have not been overcome. Environmental uncertainty, in particular, is one of the key challenges to achieving strategic alignment.  Organisations continually adapt their strategies due to rapid changes in the market, technology and regulations. Either the business strategy changes and the IT strategy has to adapt to remain in alignment, or new IT emerges and business and IT strategies have to be revised to seize opportunities. Changes in the regulations can also have a significant impact on organisational strategy. Uncertainty increases the difficulty of understanding the environment and places executives in a challenging situation with regard to strategic decision making. It is thus important for executives to develop an understanding of the effect of environmental uncertainty on strategic alignment.  This issue has received little attention in the alignment literature. The literature presents mixed arguments on the effect of environmental uncertainty on strategic alignment. There is literature which explain the implications of the antecedents of strategic alignment; however, it does not consider these antecedents in the context of a highly uncertain environment. Hence, the objective of this research is to identify the extent of the impact of environmental uncertainty on strategic alignment and to determine how this affects the impact of other antecedents.  This research adopts a post-positivist approach. Using the perspectives of the resource-based theory and the knowledge-based view of the firm, a conceptual model is presented which examines the impact of antecedents and environmental uncertainty on strategic alignment. Three antecedents – shared domain knowledge, relationship management, and prior IS success – were selected as key antecedents. Environmental uncertainty was also proposed as an antecedent. This research assumes that the effect of these antecedents on strategic alignment is mediated by two managerial practices: communication and planning connection. Based on data collected from 212 organisations in Sri Lanka, the conceptual model is tested against the research objective. As a developing country, Sri Lanka has a highly turbulent environment and thus provides a suitable setting in which to examine the impact of environmental uncertainty on strategic alignment. Partial Least Squares structural equation modelling is used to test the conceptual model.  The results reveal that environmental uncertainty has a positive impact on strategic alignment and that it is mediated by managerial practices. All the antecedents were also found to have a positive effect on managerial practices. As a managerial practice, planning connection has the stronger influence on strategic alignment, while communication plays a contingent role in the alignment process. Moreover, organisation size also has an influence on the alignment process. The relative influence of antecedents and environmental uncertainty differs between SMEs and large organisations. This suggests that the mechanisms used to attain strategic alignment vary by organisational size.  The findings contribute to the literature and practice of strategic alignment in several ways. One of the contributions is the introduction of environmental uncertainty as an antecedent to strategic alignment and the identification of the influence of three sources of uncertainty: market uncertainty, technological uncertainty and regulatory uncertainty. Another contribution is a theoretical explanation of the strategic alignment process using the resource-based theory and the knowledge-based view of the firm. Further, this research extends the validity of the alignment process to a developing country context. From the practitioners’ point of view, this research provides valuable guidance about aligning IT strategy with business strategies in an uncertain environment. Moreover, this research provides prescriptive insights for attaining business–IT alignment for both SMEs and large organisations.</p>

scholarly journals The impact of environmental uncertainty on business–IT alignment: A study in Sri Lanka

2021 ◽  
Author(s):  
◽  
Amitha Padukkage
Keyword(s):  
Sri Lanka ◽  
Conceptual Model ◽  
Business Strategy ◽  
Strategic Alignment ◽  
Environmental Uncertainty ◽  
Managerial Practices ◽  
It Alignment ◽  
Knowledge Based ◽  
Alignment Process ◽  
The Impact

<p>Despite the widely held belief that organisational performance can be enhanced through the alignment of information technology (IT) and business strategy, alignment remains a top concern for IT and business executives. This means that the challenges of attaining strategic alignment have not been overcome. Environmental uncertainty, in particular, is one of the key challenges to achieving strategic alignment.  Organisations continually adapt their strategies due to rapid changes in the market, technology and regulations. Either the business strategy changes and the IT strategy has to adapt to remain in alignment, or new IT emerges and business and IT strategies have to be revised to seize opportunities. Changes in the regulations can also have a significant impact on organisational strategy. Uncertainty increases the difficulty of understanding the environment and places executives in a challenging situation with regard to strategic decision making. It is thus important for executives to develop an understanding of the effect of environmental uncertainty on strategic alignment.  This issue has received little attention in the alignment literature. The literature presents mixed arguments on the effect of environmental uncertainty on strategic alignment. There is literature which explain the implications of the antecedents of strategic alignment; however, it does not consider these antecedents in the context of a highly uncertain environment. Hence, the objective of this research is to identify the extent of the impact of environmental uncertainty on strategic alignment and to determine how this affects the impact of other antecedents.  This research adopts a post-positivist approach. Using the perspectives of the resource-based theory and the knowledge-based view of the firm, a conceptual model is presented which examines the impact of antecedents and environmental uncertainty on strategic alignment. Three antecedents – shared domain knowledge, relationship management, and prior IS success – were selected as key antecedents. Environmental uncertainty was also proposed as an antecedent. This research assumes that the effect of these antecedents on strategic alignment is mediated by two managerial practices: communication and planning connection. Based on data collected from 212 organisations in Sri Lanka, the conceptual model is tested against the research objective. As a developing country, Sri Lanka has a highly turbulent environment and thus provides a suitable setting in which to examine the impact of environmental uncertainty on strategic alignment. Partial Least Squares structural equation modelling is used to test the conceptual model.  The results reveal that environmental uncertainty has a positive impact on strategic alignment and that it is mediated by managerial practices. All the antecedents were also found to have a positive effect on managerial practices. As a managerial practice, planning connection has the stronger influence on strategic alignment, while communication plays a contingent role in the alignment process. Moreover, organisation size also has an influence on the alignment process. The relative influence of antecedents and environmental uncertainty differs between SMEs and large organisations. This suggests that the mechanisms used to attain strategic alignment vary by organisational size.  The findings contribute to the literature and practice of strategic alignment in several ways. One of the contributions is the introduction of environmental uncertainty as an antecedent to strategic alignment and the identification of the influence of three sources of uncertainty: market uncertainty, technological uncertainty and regulatory uncertainty. Another contribution is a theoretical explanation of the strategic alignment process using the resource-based theory and the knowledge-based view of the firm. Further, this research extends the validity of the alignment process to a developing country context. From the practitioners’ point of view, this research provides valuable guidance about aligning IT strategy with business strategies in an uncertain environment. Moreover, this research provides prescriptive insights for attaining business–IT alignment for both SMEs and large organisations.</p>

Role of burnout on job level, job satisfaction, and task performance

2017 ◽  
Vol 38 (5) ◽  
pp. 630-645 ◽  
Author(s):  
Won Ho Kim ◽  
Young-An Ra ◽  
Jong Gyu Park ◽  
Bora Kwon
Keyword(s):  
Job Satisfaction ◽  
Task Performance ◽  
Organizational Context ◽  
Content Type ◽  
Job Level ◽  
Mediating Role ◽  
Final Sample ◽  
The Relationship ◽  
And Task

Purpose The purpose of this paper is to examine the mediating role of burnout (i.e. exhaustion, cynicism, professional inefficacy) in the relationship between job level and job satisfaction as well as between job level and task performance. Design/methodology/approach The final sample included 342 Korean workers from selected companies. The authors employed the Hayes (2013) PROCESS tool for analyzing the data. Findings The results showed that all three subscales of burnout (i.e. exhaustion, cynicism, professional inefficacy) mediate the relationship between job level and job satisfaction. However, only two mediators (i.e. cynicism, professional inefficacy) indicated the mediating effects on the association between job level and task performance. Originality/value This research presented the role of burnout on the relationships between job level, job satisfaction, and task performance especially in South Korean organizational context. In addition to role of burnout, findings should prove helpful in improving job satisfaction and task performance. The authors provide implications and limitations of the findings.

scholarly journals The relationship between it outsourcing and business and it alignment: An explorative study

2013 ◽  
Vol 10 (3) ◽  
pp. 973-998 ◽  
Author(s):  
Gilbert Silvius ◽  
Joanna Turkiewicz ◽  
Aleksandar Keratsinov ◽  
Harm Spoor
Keyword(s):  
It Outsourcing ◽  
It Alignment ◽  
Explorative Study ◽  
Business And It Alignment ◽  
The Relationship

scholarly journals LEADERSHIP STYLE AND EMPLOYEES’ PERFORMANCE IN PAKISTAN: THE MEDIATING ROLE OF ORGANISATIONAL COMMITMENT

2020 ◽  
Author(s):  
Muhammad Abbas ◽  
Asif Ali ◽  
Muhammad Ahsan Khalid
Keyword(s):  
Conceptual Model ◽  
Leadership Style ◽  
Employee Performance ◽  
Critical Role ◽  
Organisational Commitment ◽  
Organisational Performance ◽  
Missing Link ◽  
Mediating Role ◽  
The Relationship

The paper investigates the critical role of organisational commitment between leadership style and employees’ performance. Generally, the relationship between leadership style and the organisational performance has been discussed widely but ignoring the employees’ performance. It has been accepted that the organisational commitment leads to higher employee performance but the existing literature has not focused much on this view. A conceptual model has been developed which links the constructs together.The model reveals the missing link of organisational commitment between leadership style and employees’ performance. The sample of 242 was collected from the managers and employees of manufacturing and service organisations. The finding confirmed that organisational commitment acted as a mediator between the leadership style and employees’ performance.  

Developing Business Aligned Knowledge Management Strategy

2011 ◽  
pp. 2631-2645
Author(s):  
El-Sayed Abou-Zeid
Keyword(s):  
Knowledge Management ◽  
Competitive Advantage ◽  
Business Strategy ◽  
Strategic Alignment ◽  
Strategic Choices ◽  
Knowledge Management Strategy ◽  
Knowledge Strategy ◽  
Alignment Model ◽  
Knowledge Strategies ◽  
The Relationship

With the growing awareness of the crucial role that knowledge can play in gaining competitive advantage, several issues with regard to knowledge management (KM) initiatives have challenged executives. The articulation of the relationship between an organization’s competitive strategy and its knowledge strategy is the most eminent. This chapter addresses the issue of how to align knowledge strategy with enterprise business strategy. Based on the premise that the realization of business value from KM investments requires alignment between business and knowledge strategies, the issue is addressed by developing a strategic alignment model for KM. This model, which is based on the Henderson-Venkatraman strategic alignment model, includes the external domains (opportunities/threat) and internal domains (capabilities/arrangements) of both business (B-) and knowledge (K-) strategies and the relationships between them. Furthermore, it provides alternative strategic choices. The model is used to study a KM initiative at Buckman Laboratories.

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).

HR signals in the context of HRM-firm performance relationship: development of a conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiradip Bandyopadhyay ◽  
Kailash B. L. Srivastava
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Conceptual Model ◽  
Design Methodology ◽  
Relationship Development ◽  
Firm Level ◽  
Content Type ◽  
Factors Affecting ◽  
The Relationship

PurposeThe purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.Design/methodology/approachThe paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.FindingsThe paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.Originality/valueThe paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.

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