it alignment : what have we learned
TRANSCRIPT
IT ALIGNMENT : WHAT HAVE WE LEARNED
Yolande E Chan, Blaize Horner Reich ,2007Journal of Information Technology
4. Challenge
s
5. Dimensio
ns6. Levels
7.Measurements
8.Models
9. Antecedents
10.Outcomes
11.Process Models
IT Alignme
nt
1. Definition
2. Why Alignment
3. Pros & Cons
12. Alignment Changes
IT Alignme
nt
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. Challenge
s 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. Dimensio
ns
Structural
• Fitness between IT & Business
Social
• Understanding between Executives
• Committed
Cultural
• Culturally supported• Alignment is about cultural
change & Behavior change
6. Levels
1. Organizational,System2. Project3. Individual
Strategic &
Intellectual
• Strategic :Complementary
• 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
IT Alignme
nt
• 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. Anteceden
ts
7.Measureme
nts1. Typologies & Taxonomies2. Fit Models3. Questionnaire items4. Mathematical Calculations &
Models5. Qualitative & Quantitative
Measures
11.Process Models
• Classic Vs processual schools of thought
10.Outcom
es
• Organizational Performance
• Industry PerformanceContingency 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 Model2. 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
4. Challenge
s
5. Dimensio
ns6. Levels
7.Measurements
8.Models
9. Antecedents
10.Outcomes
11.Process Models
IT Alignme
nt
1. Definition
2. Why Alignment
3. Pros & Cons
12. Alignment Changes
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?