Business/IT alignment

Introduction

Business/IT alignment is an ongoing process that will optimize the relational mechanisms between the business and IT organization by working on the IT effectiveness of the organization in order to maximise the business value from IT. The objective of B/I alignment is to establish a trusted relationship between the business and IT that allows for an innovation driven climate in which IT becomes a strategic enabler for business growth.

It consists of a framework in which processes, communications, IT functions and technology decision making are further synchronized and aligned to ensure a full integration of the business goals and objectives with the IT strategy. Paul Strassman defines Alignment as

"alignment is the capacity to demonstrate a positive relationship between information technologies and the accepted financial measures of performance." [ [http://www.strassmann.com/pubs/alignment/ What is Alignment? Alignment is The Delivery Of The Required Results ] ]

IT alignment and IT governance

Whereas IT alignment has to be considered as an ongoing journey, Information Technology governance is much more related to implementing an organisational framework and decision making processes. A commonly cited definition by IT Governance Institute is :

"IT governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organisational structures and processes that ensure that the organisation’s IT sustains and extends the organisation’s strategies and objectives". [ [http://www.itgi.org/Template_ITGI.cfm?Section=Players&Template=/ContentManagement/ContentDisplay.cfm&ContentID=6658 | Board Briefing on IT Governance ] ] .

There is a correlationship between the two in the sense that the chosen B/I alignment model will drive the type of governance to be implemented but not vice versa.

B/I Alignment and business transformation

B/I alignment or strategic alignment might call for a series of business transformation initiatives in the areas of IT governance, IT portfolio management, IT awareness and enterprise architecture in order to realign the role of the IT department within the business operating model of the organization. Key drivers in the transformation journey are an improved IT awareness on the technology potential at the business side and a better understanding of the business needs and imperatives by the Technology department through improved communication and extensive collaboration between the two parties.

Although part of the transformation initiatives are clearly process-driven (left-brain thinking), it will require the organization not only to adapt its processes but also to review its corporate culture to become more customer-centric. Consequence of this is that a cultural change will be needed in order to engage both the IT and business communities in this new way of working. Cultural change is much more driven by right-brain thinking as it calls upon engagement, participation and collaboration.

Alignment models

Henderson & Venkatraman can be seen as the founding fathers of Business/IT alignment and published a leading article called : "Strategic Alignment: Leveraging Information Technology for transforming organisations - IBM Systems Journal, vol32, NO1".

External links

* [http://www.itgi.org The IT Governance Institute]
* [http://www.research.ibm.com/journal/sj/382/henderson.pdf Strategic Alignment: Leveraging Information Technology for transforming organisations - IBM Systems Journal, vol32, NO1]
* [http://www.strassmann.com/pubs/alignment Paul Strassman]
* [http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml;jsessionid=0CB2LNSIX0IPWAKRGWDR5VQBKE0YIISW?id=2535&_requestid=11260 Weill and Ross on IT governance]

References