Strategic and Business-IT Alignment Under Digital Transformation

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):  
Wim Van Grembergen ◽  
Steven De Haes

Enterprise governance of IT is a relatively new concept in literature, and is gaining more interest in the academic and practitioner’s world. Enterprise governance of IT addresses the definition and implementation of processes, structures and relational mechanism that enable both business and IT people to execute their responsibilities in support of business/IT alignment and the creation of value from IT-enabled business investments. This article introduces important theories and practices around Enterprise governance of IT based on joint research and practical experience of the authors (and editors-in-chief of this journal) within the Information Technology Alignment and Governance (ITAG) Research Institute (University of Antwerp Management School). The article is based on the authors’ 8-year journey into Enterprise Governance of IT and aims to outline the core themes of interest of this new International Journal on IT/Business Alignment and Governance. In this way, this introductory article paves the way for many more research initiatives within this challenging research domain.


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):  
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):  
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):  
Jerry N. Luftman

Business and IT practitioners, researchers, and consultants have been asking for an effective tool to assess IT-business alignment. Until now, none was available. This chapter introduces the strategic alignment maturity assessment. This assessment tool is based on the authors’ research and consulting experience that identified the major enablers and inhibitors in the achievement of business-IT alignment and the methodology that leverages the most important enablers and inhibitors. Alignment focuses on the activities that management performs to achieve cohesive goals across the IT (information technology) and other functional (e.g., finance, marketing, H/R, manufacturing) organizations. Therefore, alignment addresses both how IT is in harmony with the business, and how the business should/could be in harmony with IT. Alignment evolves to a relationship where IT and business 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. Achieving and sustaining alignment demands focusing on maximizing the enablers and minimizing the inhibitors. The purpose of this chapter is to discuss an approach for assessing the maturity of the business-IT alignment. Once the maturity is understood, an organization can identify opportunities for enhancing the harmonious relationship of business and IT.


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.


2020 ◽  
Vol 31 (4) ◽  
pp. 1260-1281
Author(s):  
Terence J. V. Saldanha ◽  
Dongwon Lee ◽  
Sunil Mithas

Digital transformations often require firms to align and synchronize their information technology (IT) and business initiatives. In this context, one important question that managers face is where they should focus most when aligning IT and business for leveraging IT investment for firm performance. Authors argue that firms that focus on IT–business alignment at the later stages (i.e., IT delivery and IT change) are better able to translate their IT investment into revenue than firms that focus on IT–business alignment at the early stage (i.e., IT investment planning) of the IT lifecycle. They use archival data from more than 120 firms in India and find that the positive relationship between IT investment and firm revenue is stronger for firms that focus on IT delivery–business alignment or IT change–business alignment than for firms that focus on IT investment planning–business alignment. In addition, they find that at higher levels of IT investment, firms that focus on IT change–business alignment or IT delivery–business alignment have higher revenue than firms that focus on IT investment planning–business alignment, whereas at low levels of IT investment, firms that focus on IT investment planning–business alignment outperform firms that focus on IT delivery–business alignment or IT change–business alignment. Taken together, these findings can help managers to improve the success of their digital transformation efforts by tailoring their alignment efforts across planning, delivery, and change stages.


Author(s):  
Wim Van Grembergen ◽  
Steven De Haes

Enterprise governance of IT is a relatively new concept in literature, and is gaining more interest in the academic and practitioner’s world. Enterprise governance of IT addresses the definition and implementation of processes, structures and relational mechanism that enable both business and IT people to execute their responsibilities in support of business/IT alignment and the creation of value from IT-enabled business investments. This article introduces important theories and practices around Enterprise governance of IT based on joint research and practical experience of the authors (and editors-in-chief of this journal) within the Information Technology Alignment and Governance (ITAG) Research Institute (University of Antwerp Management School). The article is based on the authors’ 8-year journey into Enterprise Governance of IT and aims to outline the core themes of interest of this new International Journal on IT/Business Alignment and Governance. In this way, this introductory article paves the way for many more research initiatives within this challenging research domain.


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