It alignment : what have we learned
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The document discusses key concepts and models related to IT alignment based on prior research. It defines IT alignment as the fitness and integration between IT and business strategies and goals. It also discusses challenges to achieving alignment, different dimensions and levels of alignment, various measurement approaches, and models such as the MIT model and strategic alignment model. The document concludes by outlining different perspectives on alignment as either a process or end-state, and factors that can influence when and how organizations pursue IT alignment.
It alignment : what have we learned
- 1. IT ALIGNMENT : WHAT HAVE WE LEARNED Yolande E Chan, Blaize Horner Reich ,2007 Journal of Information Technology
- 2. 4. Challenges 5. Dimension s6. Levels 7.Measuremen ts 8.Models 9. Antecedents 10.Outcome s 11.Process Models IT Alignmen t 1. Definition 2. Why Alignment 3. Pros & Cons 12. Alignment Changes
- 3. IT Alignmen t 1. Definition • IT as reflection of business • Fitness & integration • Harmony • Common goals 2. Why Alignment • Strategic Business Planning & Long- range IT Planning 3. Pros & Cons • Outperform • Increased Performance • Theoretical , not Real Life • Difficult to implement • IT as challenger • Not as an End VS 4. Challenges Knowledge • Unknown Corporate Strategy • Lack of Awareness in the importance of alignment • Lack of Industry & Business Knowledge Organizational • Dynamic Business & Organization Environment Locus of Control & IT Status • Understanding & Decision Authority • IT was not a benign force 5. Dimension s Structural • Fitness between IT & Business Social • Understanding between Executives • Committed Cultural • Culturally supported • Alignment is about cultural change & Behavior change 6. Levels 1. Organizational,System 2. Project 3. Individual Strategic & Intellectual • Strategic :Complementa ry • Intellectual : Inter- relation • How to link high-level strategies to lower level • Different focus on alignment can appear • How projects response to change triggers • IT projects’ deliverables are congruent with IT strategy & projects’ objectives • Shared cognition between business and IT executives • The higher the level of cognition between both, the higher the IT-business alignment level will be. • The greater diversity in both, the lower the expected levels of alignment
- 4. IT Alignmen t • Background Corporate culture, shared knowledge, prior experience with IT, existence of clear business plan, organizational size, environmental uncertainty, corporate vision, strategic IT role, technology usage satisfaction, locus control of system approval. • Foreground leadership approaches, planning processes , communication styles. 9. Antecedents 7. Measurement s 1. Typologies & Taxonomies 2. Fit Models 3. Questionnaire items 4. Mathematical Calculations & Models 5. Qualitative & Quantitative Measures 11.Process Models • Classic Vs processual schools of thought 10. Outcome s • Organizational Performance • Industry Performance Contingency Perspective - Industry - Organizational Size - Strategic Orientation - Turbulence 12. Alignment Changes • Stages of Growth • The Lead-Lag Model • Punctuate Equilibrium • Organizations change IT Planning styles as they progress through states of growth in using IT (Burn 1993). • Four phases of alignment : punctuation, change, settling-in and stability (Street 2006). • Organizations will change between IT leading change and IT catching up on change. • Too long lead or lag time will have bad effect to organization. • IT alignment consisted of long period of evolutionary change and short period of revolutionary change. Classical School (rational) • Organizations are market driven • Organizations constantly adapts to changing environment • IT to be deployed according to needs & pressures of environment • Strategy & IT is linked through contingencies of the technologies & its potential Processual School(Internal & Power) • Rejects formal plans and methodologies • Exposes hidden social value, political interests and structural inertia. • IT as resource & instrument for power gain. • Kearns & Lederer , 2003 : 12 Items . 6 From Business plan, 6 from Alignment of Business with IT Plan. • Bergeron et.al 2004 : 29 Items. Includes dimension such as IT environment scanning, planning & control, acquisition & implementation. • Organizational Culture Audit (OCA) : 6 Relationship are examined such as External Strategy and IT Strategy, Internal Infrastructure model for business & IT , planning models for internal & external cross alignment. 1. MIT Model 2. Strategic Alignment Model (SAM) 8.Models MIT Model • Revolutionary change related with IT Investment can bring rewards if all factor are in align, • These factors are Strategy, technology, structure, management processes and individuals SAM Model • 4 key domains in strategic choice. • These key domains are business strategy, organizational infrastructure and processes, IT strategy and IT infrastructure and processes
- 5. 4. Challenges 5. Dimension s6. Levels 7.Measuremen ts 8.Models 9. Antecedents 10.Outcome s 11.Process Models IT Alignmen t 1. Definition 2. Why Alignment 3. Pros & Cons 12. Alignment Changes
- 6. DISCUSSION ITEMS A process or an end-state? Does IT Alignment needed in every organizations? How does the Level of IT readiness can affect IT Alignment? How do we know the right time to do IT Alignment with Business? How can we measure organization success in implementing IT Alignment?
Editor's Notes
- #3: This paper can be considered as review paper which concludes what previous research have done in the topic of IT alignment. I tried to summarized and grouped the sub-topic into 12 categories to make it easier to understand. I will briefly explain my understanding about what the paper is all about.