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Chapter 3

Chapter 3. Strategic Alignment Maturity. IT Alignment. How is IT aligned with the business How the business should or could be aligned with IT. Questions to Ask. How can organizations assess alignment How can organizations improve alignment How can organizations achieve mature alignment.

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Chapter 3

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  1. Chapter 3 Strategic Alignment Maturity

  2. IT Alignment • How is IT aligned with the business • How the business should or could be aligned with IT

  3. Questions to Ask • How can organizations assess alignment • How can organizations improve alignment • How can organizations achieve mature alignment

  4. What alignment addresses • Effectiveness - doing the right things • Efficiency – doing things right

  5. Align for IT managers • Be knowledgeable about how the new IT technologies can be integrated into the business and its different technologies and architectures • Be privy to senior management’s tactical and strategic plans

  6. Managers continued • Be present when corporate strategies are discussed • Understand the strengths and weaknesses of the technologies in question and the corporate wide implications

  7. Maturity alignment • Failure to implement strategies was based on failure of “alignment” between IT and business • Dynamic nature and process of alignment reflect key organizational practices which enable or inhibit (if missing) alignment

  8. Strategic Alignment Maturity Model • Level 1-initial/ad hoc process • Business and IT not aligned or harmonized • Level 2-committed process • Organization has committed to becoming aligned • Level 3-established focused process • Strategic alignment maturity established and focused on business objectives

  9. Model continued • Level 4-improved/managed process • Reinforcing the concept of IT as a “Value Center” • Level 5-optimized process • Integrated and co-adaptive business and IT strategic planning

  10. Model continued • Six IT/business alignment criteria are contained in each of the 5 areas • Communications maturity – ensuring ongoing knowledge sharing across organizations • Competency/value measurement maturity – demonstrating the value of IT in terms of contribution to the business • Governance maturity – ensuring that the appropriate business and IT participants formally discuss and review the priorities and allocation of IT resources

  11. Model continued • Partnership maturity – how each organization perceives the contribution of the other; the trust that develops among the participants and the sharing of risks and rewards • Scope and architecture maturity – the extent to which IT is able to: • Go beyond the back office and into the front office of the organization • Assume a role supporting a flexible infrstructure that is transparent to all partners and customers

  12. Model continued c. Evaluate and apply emerging technologies effectively d. Enable or drive business processes and strategies as a true standard e. Provide solutions customizable to customer needs 6. Skills maturity – going beyond the traditional considerations such as training, salary, performance feedback, and career opportunities are factors that enhance the organization’s cultural and social environment as a component of organizational effectiveness

  13. Criteria for IT and Bus. Executives • Agree that a criteria needs to be improved • Agree that a criteria is good, but can be better • Disagree with how good/bad a criteria is

  14. Six criteria in depth • Communications • Inter-unit liaison • Cross-functional teams • Facilitate communications – not a single person and rigid protocols

  15. Criteria continued • Competency/value measurements • Metrics of how IT and business units function differ • Need to understand factors that lead to missing the criteria and goals established • What can be learned to improve the environment continuously

  16. Criteria continued • Governance • Need to formally discuss and review the priorities and allocation of IT resources • Decision-making authority needs to be clearly defined

  17. Criteria continued • Partnership • IT needs equal role in defining business strategies • Trust between IT and other business units • Good sponsors and champions • Sharing of risks and rewards

  18. Criteria continued • Scope and architecture • Five areas addressed earlier very crucial

  19. Criteria continued • Skills • All human resource considerations • Consider the cultural and social environment • Change environment • Innovation in the company • Do individuals and company learn quickly • Does company leverage innovative ideas and spirit of entrepreneurship

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