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Organizational IT Maturity

Organizational IT Maturity. A New Look at an Ageing Concept. Arik Ragowsky, Ph. D., Wayne State University Paul S. Licker, Ph. D., Oakland University David Gefen, Ph. D., Drexel University. Benefits. Infor- mation Systems. The Challenge.

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Organizational IT Maturity

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  1. Organizational IT Maturity A New Look at an Ageing Concept Arik Ragowsky, Ph. D., Wayne State UniversityPaul S. Licker, Ph. D., Oakland UniversityDavid Gefen, Ph. D., Drexel University SIM Academic Workshop December 2007

  2. Benefits Infor- mation Systems The Challenge Organizations invest a lot of money and effort in their information systems. Do they really realize the benefits that those information systems can potentially provide? ? SIM Academic Workshop December 2007

  3. Evidence from the Real World • Meetings with CIOs • Problem Identification • CIO Roundtable Discussion • Company visits SIM Academic Workshop December 2007

  4. The Alignment Challenge The realization of the benefits depends on the quality of systems provided by the IT function, and -- even more importantly -- on the quality and extent of the use of the system by the managers and users. As long as the organizational managers and users do not properly utilize the deployed technology, there is a lack of alignment between the IT and the organization. SIM Academic Workshop December 2007

  5. The Alignment Challenge The quality of the systems depends on the IT maturity. But… The alignment with the organization depends upon Organizational IT Maturity SIM Academic Workshop December 2007

  6. Our Approach Aligning the organization to the IT, as opposed to merely aligning the IT to the organization: Organizational IT Maturity(OITM) which is the responsibility of organizational managers and users. SIM Academic Workshop December 2007

  7. OITM Alignment Benefits Infor- mation Systems Increased Use Increased OITM Affects Alignment and Organizational Benefits Better Use SIM Academic Workshop December 2007

  8. The Road to Our Approach • Older maturity measures concentrated on IT • Nolan • CMM, SPICE • Newer approaches include organizational characteristics (e.g., communication, governance, skills) • Luftman, Hirschheim SIM Academic Workshop December 2007

  9. Organizational IT Maturity Foundation and Approach • Focusing on organizational managers’ and users’ appreciation and recognition of information as an crucial resource. • Fostering mutual respect and appreciation between IT professionals on the one hand, and managers and users on the other at all levels. SIM Academic Workshop December 2007

  10. Maturity Definition Maturity – Responsibility, leadership, stability, professionalism. Maturity – Acknowledging that somebody knows more than you do on a specific topic. Example: Medical model, treating the IT professionals as doctors – here is the problem, you will advise me on me what to do and what not to do; and NOT here is the problem, and here is what I want you to do to solve it. SIM Academic Workshop December 2007

  11. Maturity Definition Maturity with respect to IT: Accepting IT function as the authority for IT Accepting managers and users as the authority for the business management and their information needs SIM Academic Workshop December 2007

  12. Organizational IT Maturity Characteristics Managers and Users are “mature” enough to accept: • That information systems are much more than PCs and Microsoft. • The authority of the IT function as the best agency to provide their information resource. • That the IT function is the sole source of information technology for the organization - e. g., relationship with hardware and software vendors. SIM Academic Workshop December 2007

  13. Organizational IT Maturity Characteristics Managers and Users are “mature” enough so that: • IT is perceived as an investment (of money, time, and effort) by users at all levels. • Managers and Users douse the organizational information systems and are not looking for alternative solutions. • The organizational management is accepting an IT delegate as an equal partner of the management team at each managerial level. SIM Academic Workshop December 2007

  14. Organizational IT Maturity Characteristics Managers and Users are “mature” enough so that: • The organizational management is accepting an IT delegate as an equal partner of the management team at each managerial level. SIM Academic Workshop December 2007

  15. Strategic (C-) level alignment Formulation of strategy Passive: Getting IT from the IT function Investment of money Alignment at all levels Quality of use towards strategy Active: Use of IT by managers and users Investment of money, time, effort Comparing Concepts:IT MaturityOITM SIM Academic Workshop December 2007

  16. An Organization that is Not IT Matured The tension between IT and the users SIM Academic Workshop December 2007

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