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The balanced view on strategic business and IT alignment

Varlamov, Oleksandr (2010) The balanced view on strategic business and IT alignment.

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Abstract:The latest trends show that IT becomes more and more integrated in daily life and activities of companies. People get used to technologies, companies begin to rely on them and trust them vitally important business activities. Along with increasing importance and the role of IT, the value of technology goes down. Internet is no more a unique, innovative and fascinating media, but just “the electricity of the 21st century”. If you do not like prices, quality or conditions of your provider, you can easily switch to another one. The similar trend of commoditization comes to other, formerly unique areas of IT services, like software development, desktop management, etc. To continue being a unique department or function within a company and keep bringing the value which is highly estimated by business, IT people should become closer to business side and pay more attention to improving Business‐IT Alignment. With better understanding of technologies companies increasingly need their IT to understand the core business and its needs, the needs of customers, and opportunities on the market. Progressive CIO’s and IT managers should see where opportunities for the business lie when they look at the market through the lenses of arising new technologies and upcoming innovation trends. Changes are going on in the real world. However, for people and companies it is not always easy to keep up with the pace. Some companies already open virtual representative offices in other countries while others only start getting used to the very basic IT. Some IT providers propose companies to outsource their innovation while others still struggle with maintaining stable and secure internet connection. Maturity is different, and the degree of integration or alignment of business with IT is different across companies as well. It is not possible – neither for businesses, nor for IT providers – to become mature in one day. But what is possible, is to assure that both partners in business‐IT relations have maturity which goes in line with each other, that they have proper Business‐IT Alignment. Specialists from practice and scientific researchers have been active for the last 20 years in the areas of Business‐IT Alignment and maturity assessment. Various standards and best practices have appeared on the practical front: ITIL, CobiT, CMM/CMMI, and many other. Scientists have been proposing a theory after theory, going deep into details or trying to apply insights from adjacent domains. However, we do not have a tool, framework or theory yet that would be simple and powerful enough to bring insights from practice and science together to help reach stable and efficient agreement in Business‐IT relations. Business‐IT Integration Maturity Model (BITI MM) used by Getronics Consulting might prove to be a proper model for that purpose. Originally coming from the world of practice it uses and goes in line with the most influential theories from the world of science in the domains of Business‐IT Alignment and Maturity Models. This report describes how BITI MM was challenged and validated during a six‐month research project. THE MAIN CONCLUSIONS ABOUT BITI MM • BITI MM goes in line with previously done research and studies in the fields of Business‐IT Alignment and Maturity Models. • BITI MM provides an overview and perspective not given by other public models, frameworks or standards in the field. • The main concepts of the model are recognized and easily understood by experts. • The simple two‐column representation of the model can be used from the very start of any project or initiative that involves Business and IT parties to facilitate mutual understanding. Universiteit Twente & Getronics Consulting Oleksandr Varlamov 4 of 104 June, 2010 • BITI MM can be used as a tool for initial strategic assessment to define the organizational changes necessary for proper Business and IT Alignment.
Item Type:Essay (Master)
Clients:
Getronics Consulting
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Information Technology MSc (60025)
Link to this item:https://purl.utwente.nl/essays/59925
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