How IT Governance should be established in order to have a good alignment between IT, Business and external Service Providers

IT governance deals with connections between business focus and IT management. The goal of clear governance is to assure that investment in IT generates true value to business. IT governance is defined as the processes, structures and relational mechanisms that ensure the effective and efficient use of IT in enabling an organization to achieve its goals. IT and business alignment begins and ends with good IT governance. Business-IT alignment is the fit and integration among business strategy, IT strategy, business and IT structures. Research has shown that organizations where IT strategies and operations are aligned with business strategies and operations seem to be more innovative in use of new information technolo-gies. The objectives for this research are to find out the elements for a good IT governance and understand what are the components and requirements for an effective Business- IT alignment. The study will seek answers to the following three research questions: (RQ1) what are the elements for a good IT Governance” , (RQ2) “How to achieve a real alignment between IT, business and external service providers”, and (RQ3) “what are the drawbacks in the current IT Governance in the case company”. The research includes theoretical part and the empirical part. Theoretical part through literature review introduces the main concepts and frameworks. Empirical part describes the research methods. This study was conducted by using a qualitative and quantitative methods. The data was gathered via web survey in a case company where the author is currently working. The questions in the survey are based on theoretical framework called the Strategic Alignment Model. The survey was conducted in February 2020, the survey was sent to preselected persons in IT and Business. With the web survey, the target was to get the understanding what are the drawbacks with the current IT Governance and Business-IT alignment. As a result of the study, all research questions were answered. Based on the survey results in the case company, clear improvement areas were found in the areas of IT and business pro-cess understanding, roles and responsibilities, processes and collaboration. Recommenda-tions for the case company are made to improve the Business-IT alignment especially on tac-tical and operational levels

Business and Information Technology (IT) alignment in theory and practice: evidence from selected companies in Sri Lanka

This research provides a comprehensive approach to show the business - IT alignment in terms of where they are and what they can do to improve alignment maturity. Identifying an organization’s alignment maturity provides an excellent vehicle for understanding and improving the business-IT relationship. Alignment addresses both how IT is in harmony with the business, and how the business should, or could be in harmony with IT. A survey research method was applied to gather data and Strategic Alignment Maturity Model (SAMM) used to measure the business - IT alignmen

Antecedents of IT-Business Alignment Factors in Influencing Sustainable Competitive Advantage

More extensive studies on the causal chain between Information Technology (IT) investments and firm performance have been encouraged by scholars. However, the results of empirical studies have been inconclusive. This is partly due to the exclusion of IT - business strategic alignment (known as strategic alignment). In particular, scholars have continuously called for research to address the antecedent factors that lead to the alignment. As a result, this study has successfully developed a causal model illustrating the relationships between strategic alignment antecedents, strategic alignment and sustainable competitive advantage. Specifically, this study has looked into the impact of IT-business strategic alignment antecedents in terms of leadership between business and IT managers, structures and processes between IT plans and business plans and examined IT managerial resources between business and IT managers, service qualities, values and beliefs, and IT implementation success on IT business strategic alignment in terms of alignment gaps. Finally, the impact of IT-business strategic alignment is also tested for its impact on sustainable competitive advantage. In order to explore the above research relationships, this study has utilized the positivism paradigm. Under this method, quantitative data was collected. More specifically, this study has tested the research model by conducting 172 survey questionnaires with public shareholding firms in Jordan. The results obtained from the structural equation modeling (SEM) technique and interviews have offered very valuable insights into the research questions. The results of the main survey questionnaire show strong evidence for the impact of the following variables: leadership, service quality, value and belief, IT managerial resources and IT implementation success, on IT – business strategic alignment. Conversely, SEM has failed to support the link between structure and process on IT business alignment. In addition, the results show strong evidence for the impact of the following: leadership, IT managerial resource and IT implementation success on sustainable competitive advantage. However, SEM failed to support the link between service quality, value and belief, and structure and process on sustainable competitive advantage. Furthermore, the results from the main survey questionnaire show strong evidence for the impact of IT – business strategic alignment on sustainable competitive advantage. Moreover, the results of the main survey questionnaire through the SEM show strong evidence for the mediating effect of strategic alignment on the relationships between value and belief, service quality and sustainable competitive advantage. This study has provided a detailed roadmap that researchers and practitioners can use in order to understand the resources required, and to realize the potential values of their IT investments. Future research is clearly needed to reveal better insights into the nature of these relationships

STRATEGIC ALIGNMENT MATURITY AND ITS EFFECT ON ORGANIZATIONAL PERFORMANCE OF JAPANESE SMALL AND MEDIUM ENTERPRISES

Purpose:Using a conceptual framework of Sledgianowski and Luftman (2001), this paper empirically investigates how Japanese SMEs view their Strategy Alignment Maturity, Short-term Linkage, and Organizational Performance. The author examines a theoretical framework for assessing strategic alignment maturity by using a survey data of Japanese small and medium companies. The relationship between strategic alignment maturity and the mutual understanding of business and IT objectives between business and IT executives is analyzed. Methodology: The methodology of this study is quantitative. Three hundred fifty-four (354) Japanese firm-level data collected have beenanalyzed using structural equation modeling. Main Findings:The results show that factors associated with IT-Business Alignment Maturityof Japanese SMEs are statistically significantly positively related to organizational performance. However, those are statistically significantly negatively related to Short-term Linkage.Although the linkage of information system plans with organizational objectives (business plans) are positively related, this study implies that the linkage of information systems and each factor of IT–Business Alignment Maturity is rather weakas previous empirical literature suggested. Applications:This study can be applied to the firm-level analyses where IT-Business Alignment Maturity and Short-term Linkage are in issue. Novelty/Originality:The author examines the relationship between strategic alignment maturity and organizational performance by using a survey data of Japanese small and medium companies

Business-IT Alignment Effects on Business Agility

The purpose of this study is to examine the effect of business-IT Alignment effects on business agility. The questionnaire of this study was given to 504 people via online survey who work as a manager in 3 public, 9 private and 16 foreign capital banks in Turkey.  334 valid questionnaires were collected back and analyzed.  Corellastion, Regresion and Multiple Regretion analysis were used. According to the findings business-IT alignment has a positive effect on the business agility. As sub dimensions intellectual alignment and business alignment have a positive effect on the business agility. When we look at Business –IT alignment effect on business agility dimensions. It has positive effects on all six dimension of business agility (Agile Values, Technology Workforce, Change Management, Collaboration & Coordination and Flexible Infrastructure.).

Business and IT Alignment in Dutch Vocational Education and Training Organizations

The alignment of information technology (IT) and business process and strategy is still a relevant area of concern in many organizations. Educational institutions are no expection to this, with low alignment maturity being reported (Lufman & Kempaiah, 2007). This paper reports a study into the business of IT alignment maturity of the Dutch Vocational Education and Training sector. A survey was undertaken to assess the alignment maturity levels in these organizations, as a baseline for further development

IT Alignment: Different Firm Types, Different Alignment Configurations

As opposed to the earlier IT-business alignment research where there appears to be a tendency to view realization of alignment through a simple universal approach and in line with the call to examine how the nature of alignment varies across firm types, this study discusses the IT-business alignment dimensions from the five ideal organizational archetypes perspective. The study suggests an integrative framework for IT-business alignment as a function of Mintzberg’s five organizational archetypes. A qualitative case study research methodology is discussed. Enriching the model with the qualitative study and generalizing the results with a quantitative survey study will have important implications for theory and practice

IT-Business strategic alignment in influencing sustainable competitive advantage in Jordan: Structural Equation Modelling (SEM) approach

In many review articles or studies, the researchers have encouraged further exploration on the causal links between Information Technology (IT) investments and a firm’s sustainable competitive advantage.The outcomes of empirical studies have been inconclusive, which is to a certain extent due to the omission of IT-business strategic alignment.Indeed, strategic alignment has emerged as one of the most important issues facing business and IT executives all over the world. This paper reports on the empirical investigation of the success factors, which consist of leadership, structure and process, service quality, and values and beliefs, which are representative of the culture gap between IT strategy and business strategy.A questionnaire survey among 200 IT managers was carried out and 172 data sets were collected.This represented a 86% response rate. After a rigorous data screening process including outliers, normality, reliability and validity, 172 data sets were ready for structural equation modelling (SEM) analysis. Confirmatory Factor Analysis (CFA) was performed to examine the composite reliability, convergent validity and goodness of fit of the individual constructs and measurement models. The revised structural model demonstrates the relationships between all the four exogenous variables and IT-business strategic alignment, and all the four exogenous variables and sustainable competitive advantage. In addition, regarding the revised model there are two mediating effects of strategic alignment in the relationship between leadership, structure and process, service quality, values and beliefs, and sustainable competitive advantage

A framework of practices influencing IS/Business alignment and IT governance

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University, 21/01/2011.The alignment of information systems (IS) strategies with business strategies has been a managerial priority in modern organisations. Information Technology (IT) governance is an alternative perspective that has recently been used as a management solution that can drive to desired levels of IS/business alignment. From a pragmatic perspective, both IS/business alignment and IT governance appear to be managerial solutions that corporations desire to implement in order to get the most of the business and IT relationship. Empirical research has addressed the idea that effective designs of IT governance enable IS/business alignment, however, the extent of such impact and related interactions are still unclear. This research is focused on those claims to contribute with pragmatic solutions towards IS/business alignment and IT governance by means of collective management practices. This research explored challenges, assumptions and conceptualisations around IS/business alignment and focused on the assessment process of IS-business alignment to identify management practices for both IS/business alignment and IT governance. First, a quantitative analysis from data collected of an international survey was performed. This survey was conducted to identify extreme outcomes of relevant management practices in the IS/business alignment dynamics and links with IT governance. Second, a qualitative analysis from data collected of two leading large companies, one in the manufacturing and other in the financial sector, was performed by using a three-level (strategic, tactical and operational) assessment method. This case research aimed to identify how common relevant management practices interact across strategic, tactical and operational organisational levels. Results of both analyses were integrated to elaborate the constructors of the framework derived from this research, namely ALIS-G. The results from this research can be summarised as follows: First, ALIS-G exhibits four core management practices (IT investment management, budgetary control, strategic and tactical program management, strategic and tactical understanding of IT-business) and four supportive (IT-business planning, IT projects prioritisation, sponsorship & championship and change readiness) to show collective and compelling influence over the IS-business alignment dynamics and the effectiveness of IT governance arrangements. Second, a well-established IT investment management process holds the most substantial positive impact in the IS-business alignment dynamics and design of IT governance arrangements. Finally, results highlights the fact, perhaps obvious, that the arrangement of IT governance and the dynamics of IS/business alignment are very much conditioned by the resilient assignment, allocation and administration of budget

On the Conceptualization of Strategic Information Technology Alignment: Development and Validation of a Multidimensional Construct

In this study we conceptualize strategic information technology (IT) alignment as a two-way relationship where business strategy influences IT, and IT influences business strategy. This implies that a multidimensional rather than the traditional unidimensional conceptualization of strategic IT alignment is appropriate. To validate this approach we develop and test a new multidimensional measure that captures the first-order effects of IT alignment at the process-level, where they are expected to be realized. We test the model using survey data from 94 companies that span three countries ─ US, Australia and Germany. Results reveal that the multidimensional measure of strategic IT alignment is a better predictor of both business unit agility and performance than the unidimensional measure of strategic IT alignment