Aligning IT and business needs is still one of the most important concerns for senior management. The message of Business and IT Alignment (BIA) is logical and undisputed, but implementation is apparently difficult. Luftman and Kempaiah [11] conclude that business and IT alignment needs a tool that can provide an assessment of an organization’s level of alignment and a roadmap on how to improve alignment. A broadly used framework for assessing business and IT alignment maturity is Luftman’s Strategic Alignment Maturity (SAM) model [10]. The paper presents a survey study into the perceived contribution of the different variables and sub-variables of the SAM model. We found that the perceived contribution of the variables are not equally spread and suggest a modification of the model
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Aligning business and IT strategy is a prominent area of concern. Organizations that successfully align their business strategy and their IT strategy, outperform their non-aligned peers (Chan et al., 1997). This chapter explores the relationship between business strategy, IT strategy and alignment capability. We found that each business strategy can be supported by all IT strategies, but that certain combinations provide a better fit than others. Regarding business strategy and alignment capability we found no conclusive relationship. Regarding the relationship between IT strategy and alignment capability however a clear relationship appeared. We explored this relationship further in a dual case study of two organizations having distinctly different IT strategies. One organization sees IT as an enabler for the business processes with mainly an internal impact, whereas the other organization IT sees as a driver for business innovation that can create competitive advantage in the market place. Based upon an assessment of their alignment capabilities we found that the company with the innovative IT strategy scored a distinctly higher alignment capability than the company with the essential IT strategy. Although this conclusion may not be surprising, it provides further evidence for the statement that a more progressive IT strategy pairs with a better alignment of business and IT.
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This chapter explores the theory and practice of Business & IT Alignment in multinational companies. In the first part of the chapter an overview of the theory is presented. In this part the familiar frameworks for Business & IT Alignment are put in perspective in an Alignment development model. The second part of the chapter presents the practical issues that are experienced in aligning IT to business in multinational companies. These issues and considerations resulted from a focused group discussion with IT managers and CIOs of medium sized and large organizations in the Netherlands.
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