Implementing Business-IT Integration in Digital Enterprises Using Organizational Capabilities

Abstract

Digital transformation is driving organizations to evolve into digital enterprises. Digital enterprises require the integration of business and IT to leverage digital technologies efficiently. However, a framework outlining the organizational capabilities required for such integration is lacking. This paper addresses the gap by identifying these capabilities and offering practical implementation approaches. Based on a year-long case study and eight expert interviews, we identified twelve organizational capabilities essential for a technology-driven digital enterprise. These capabilities, designed around people, organizational structure, and tasks, are supported by practical approaches to achieve business-IT integration. Thus, this paper provides guidance for organizations to implement business-IT integration as a foundation for their path into a digital enterprise. Furthermore, this study advances research on organizational capabilities and change management by emphasizing the interplay between business and IT