Investigating business-IT alignment through multi-disciplinary goal concepts

The alignment of information technology (IT) with business strategies is optimal when harmony exists between organizational and system goals. Empirical evidence reveals that effective strategic alignment leads to superior financial performance for organizations. This observation has spurred extensive research into business-IT alignment. Yet, the issue of alignment remains a top concern for CIOs. We argue that the parochial view undertaken by past research into business-IT alignment is a probable cause for continuing system failures. Furthermore, strategic alignment research is limited and devoid within the requirements engineering discipline. In this paper, we highlight existing shortfalls of research in business-IT alignment, and bring to light insights that may be offered by other disciplines to augment this field. Subscribing to a multi-disciplinary perspective, we develop a goal-based framework that incorporates goals from various literatures in investigating business-IT alignment. One of the novelties of our proposed framework lies in its delineation between goals that have been originally assigned to stakeholders versus those interpreted by stakeholders. Additionally, the framework includes constructs at the strategic level for supporting the rationale of strategic level goals. We tested the usefulness and usability of this methodology in an organization with a newly developed information system founded on strategic business goals and reported lessons learnt from both researchers’ and practitioners’ perspectives.     

Investigating the role of an enterprise architecture project in the business-IT alignment in Iran

Ensuring that IT and business have a more mature alignment relationship is recognized as being critical to an organization’s success. To achieve alignment leveraging, enterprise architecture (EA) is considered fundamental as a comprehensive approach to planning and managing IT actions within the organization, based on its business requirements. This paper reports on a study to assess the effect of successful EA projects on the business-IT alignment in Iranian organizations, using the Luftman’s maturity model as the assessment tool. The implications of our findings in this study as well as its limitations are discussed to assist in detecting the flaws in the existing EA frameworks and to propose improvements.     

Alignment within the corporate IT unit: an analysis of software testing and development

Strategic alignment between an organization's business strategy/capabilities and those of its information technology (IT) unit is an extensively researched subject that addresses the issue of fit between business and technology strategies. A key gap in the literature is lack of recognition that underlying this macro level of alignment are other, more granular levels of alignment involving the interdependent subunits within the corporate IT unit. Given the critical interdependencies between development and testing subunits in software engineering, this paper focuses on an alignment model for ensuring that these two functions work together effectively. A development-testing alignment (DTA) model is described, and a case study investigating its value and application is presented. This DTA is decomposed into distinct components for the purposes of theoretical clarity and pragmatic application. The case study analysis uses the model to understand and interpret development-testing alignment in a Fortune 500 company. We found that the development and testing functions were significantly misaligned, and our model identified close to twenty specific aspects that needed to be considered to enhance alignment. These included changes in specificity of scope, governance, resource availability, competencies, and processes. Our analysis shows that the DTA model can be usefully applied for the purpose of understanding tactical alignment between subunits within a corporate IT unit. It also demonstrates that there is value in considering alignment as a dynamic, context-driven, social phenomenon as well as a useful interpretative lens for exploring organizational interactions and interdependencies.     

Understanding the success of strategic IT benchmarking—Exploring the role of the individual level

IT organizations use strategic IT benchmarking (SITBM) to improve business-IT alignment or for developing IT strategies. However, SITBM often does not result in the desired outcomes. Because the extant literature does not contribute to improving SITBM success, we conduct a deductive-inductive study to understand which factors distinguish successful and unsuccessful SITBM. We find that traditional project-level factors do not explain SITBM success; they are necessary but not sufficient. Rather, we show that the individual level is instrumental for explaining SITBM success, especially by ensuring the buy-in of relevant project team members – a perspective not yet discussed by pertinent literature.     

CEO/CIO mutual understanding,strategic alignment,and the contribution of IS to the organization

Mutual understanding between the CEO and CIO is thought to facilitate the alignment of an organization's IS with its business strategy, and thereby enhance the contribution of the IS to business performance. A survey of 202 pairs of CEOs and CIOs was taken to investigate the relationships between them. Mutual understanding was measured as the role of IS in the organization, using the perspectives of both executives. Strategic alignment was measured as the fit between the CEO's assessment of eight STROBE dimensions and the CIO's assessment of the analogous STROEPIS dimensions; both the CEO and CIO evaluated IS contribution. Mutual understanding of the role of IT led to seven alignment dimensions whereas six alignment dimensions led to IS contributions. Our study extended the theory of IT strategic alignment and provided direction for CEOs and CIOs interested in improving the IS contribution of their organization.     

Business–IT alignment maturity of companies in China

Business–IT alignment has been consistently ranked as the number one concern of IT and business executives. Maintaining the alignment has been found to lead to stronger business performance, higher perceived value of IT and improved IS strategic planning; therefore addressing the issue is both important and timely. The economic growth in China in the last decade has led to greater availability of IT and its widespread use as a critical resource. Despite the increasing interest in Chinese IS issues by both researchers and practitioners, empirical research focusing on human- and organization-related IS issues in China is scarce. Using data collected from 130 business and IT executives from 22 companies in China, 11 of which were multinationals operating in China, we explored several questions in the area of business–IT alignment. An instrument designed to measure the six dimensions of business–IT alignment maturity was cross-validated using a sample of companies in China. Then, the instrument was refined to develop a measurement method that offered better reliability and validity in the context of Chinese companies. The relationship between the alignment maturity dimensions and IS strategic alignment was then examined. Finally, the alignment maturity of companies in China was assessed to provide a snapshot of business–IT alignment in China. A comparison between the 11 Chinese domestic companies and 11 multinational operating in China provided insight into the different IT practices of the two types of companies. Implications for researchers and practitioners are discussed.     

A strategic path to study IT use through users’ IT culture and IT needs: A mixed-method grounded theory

We consider recent research in IS, as well as recent advances in the fields of psychology and sociology. As an alternative to existing models, we propose a new strategic path to study IT use through users’ IT culture and IT needs. Our contributions are (1) theoretical: we investigate the predictive value for IT usage of several new constructs and show that both expectancy-based and needs-based theories of motivation should be taken into account in acceptance models, (2) methodological: we adopt an exploratory, mixed-method, grounded theory approach and use both quantitative and qualitative data and methods, an unusual approach in IS research that allows new perspectives, and (3) practical: our results highlight the fact that highly IT-acculturated users may hinder (rather than facilitate) new-IT acceptance if their situational IT needs are ignored. Therefore, when the strategic decision of implementing new IT is made, managerial attention must be focused on these users in order to drive toward the alignment of their IT needs and managerially-perceived organizational IT needs.Our work opens the way to numerous avenues for future research.     

Ideal patterns of strategic alignment and business performance

Strategic alignment or “fit” is a notion that is deemed crucial in understanding how organizations can translate their deployment of information technology (IT) into actual increases in performance. While previous theoretical and methodological works have provided foundations for identifying the dimensions and performance impacts of the strategic alignment between IT, strategy, and structure, few attempts have been made to test the proposed theory empirically and operationalize fit systemically. Based on a gestalt perspective of fit and theory-based ideal coalignment patterns, an operational model of strategic alignment is proposed and empirically validated through a mail survey of 110 small firms. Using cluster analysis, it was found that low-performance firms exhibited a conflictual coalignment pattern of business strategy, business structure, IT strategy, and IT structure that distinguished them from other firms.     

基于战略匹配和IT能力的企业IT项目决策

为将战略匹配思想和IT能力对1T项目的影响转化为量化模型,支持企业更科学地进行IT决策,引入网络层次分析法模拟企业战略与IT战略之间双向对应和协同关系,分别借助Porter的战略理论和Henderson的战略匹配模型来代表企业战略和IT战略。考虑各种IT能力对IT战略和IT项目的影响,提出基于战略匹配和IT能力的IT项目决策模型,并以实例说明该模型的使用方法和有效性。     

IT基础设施与信息系统战略对应模型

IT基础设施是IT组合的基础,其在组织范围内为IT应用和核心业务提供可靠的共享服务。IT基础设施能力关系到企业战略及BPR的成功与否。IT基础设施与信息系统战略之间的对应是战略对应的一项基本问题。该文建立了基础设施与信息系统战略之间的对应模型,并根据该模型采用多目标规划方法和AHP方法解决信息系统规划中的基础设施规划问题,建立了IT基础设施的多目标决策模型。     

Uncovering ITIL claims: IT executives�� perception on benefits and Business-IT alignment

Over 45% of companies are estimated to use IT Service Management (ITSM) frameworks, yet, these frameworks can be imitated and hence the competitive advantage gained from these will quickly become obsolete. Therefore, research on the benefits of ITSM must focus on both operational and strategic benefits. An international survey of 441 firms was conducted to examine the benefits that IT Infrastructure Library (ITIL), the de-facto ITSM framework, provided to the IT organizations. The research focused on how (1) operational benefits, and, (2) strategic positioning of the IT organizations, specifically how the perceived level of Business-IT alignment maturity evolved as the adoption of ITIL increased. Results indicate that as the adoption of ITIL increased, the number of realized operational benefits increased, as well as the levels of maturity of the Business-IT alignment. This indicates that the further the implementation of ITIL the greater the operational and strategic benefits to the organization. Implications for practitioners and researchers are also discussed.     

One World,Two Realities: Perception Differences between Software Developers and Testers

Strong working relations between software developers and testers are critical to the efficient and effective development of high-quality software. Smooth collaboration must occur as testers find problems and developers fix problems in the software. Prior studies based on anecdotal data have suggested that developers and testers have different personalities, approaches to work, etc., and these differences may have negative impacts on software project outcomes such as software quality and job satisfaction. This study examines the results of a nationwide survey undertaken to empirically examine and to improve our understanding of the pertinent areas where developers and testers differ. Results support that significant differences exist in perceptions between developers and testers. We conclude that these differences must be considered in order to improve software development efficiency and effectiveness.     

A theory of distances in software engineering

ContextCoordinating a software project across distances is challenging. Even without geographical and time zone distances, other distances within a project can cause communication gaps. For example, organisational and cognitive distances between product owners and development-near roles such as developers and testers can lead to differences in understanding and interpretation of the business requirements. Applying good software development practices, known to enhance alignment and coordination within development projects, can alleviate these challenges.ObjectiveThe aim of our research is to identify and describe underlying factors which can explain why certain practices support aligning and coordinating software development projects.MethodWe have inductively generated a theory analysing empirical data consisting of 15 interviews from 5 different companies. The systematic and iterative analysis was based on an initial hypothesis that distances affect development, and on results from previous research.ResultsWe present a theory of distances that explains how practices improve the communication within a project by impacting distances between people, activities and artefacts. We also present a theoretical model of how specific alignment practices affect different types of distances.ConclusionsThe results provide a basis for further research and can be used by software organisations to improve on software practice.     

Information technology capability and firm performance: Role of industry

Despite several calls for considering industry in the IS value research, few studies investigated the relationship between benefits of IT and industries. This study extends Chae et al. (2014) by investigating how industry influences the relationship between IT capability and business performance. Unexpectedly, it finds that the control group in the industries in which the "transform" IT strategic role dominates showed superior performance than the IT leader. Also, the IT leaders in the "automate" IT strategic industry did not exhibit better business performance than the control firms. We discuss the implications of these findings.     

The roots of misalignment: Insights on strategy implementation from a system dynamics perspective

This essay advances the study of strategic alignment by explaining how and why misalignment occurs. We begin by summarizing why IT and business strategies evolve in unintended ways, a phenomenon known as strategic drift. Using the causal loop diagramming approach of system dynamics, we observe that several sources of drift, potentially resulting in misalignment, are paradoxically built into the process of strategy formation and enactment itself. These linked subprocesses involve multiple actors at multiple levels of an organization and operate to promote (or hinder) strategic alignment. This paper contributes to the literature by enumerating and modeling both the top-down processes that can promote (or hinder) strategic alignment, as well as the less-studied bottom-up processes, ultimately yielding a more nuanced, dynamic, process-oriented understanding of strategic alignment. Directions for future research include the study of alignment at the process and group levels, as well as an exploration of settings where certain types of strategic drift and misalignment yield beneficial outcomes.     

Impact of IT Governance and IT Capability on Firm Performance

Based on resource-based and strategic choice theory, this research empirically validates that IT governance is an important antecedent of IT capability, which in turn results in improved firm performance. This article contributes to the IS literature by proposing a comprehensive measure of IT governance based on secondary data, and simultaneously examining the impact of IT governance and IT capability on firm performance.     

Enterprise architecture,IT effectiveness and the mediating role of IT alignment in US hospitals

Despite the possible benefits of implementing healthcare information technologies, successful implementation of effective healthcare information technology is constrained by cultural and regulatory concerns and technical obstacles encountered when establishing or upgrading an organisation's enterprise infrastructure. In this paper, we advance Ross' four‐stage model of enterprise architecture maturity as a valuable IT resource for helping healthcare organisations sustain a competitive advantage. We use partial least squares (PLS) structural equation modelling to analyse survey data from 164 US hospitals at different stages of EA maturity. Our results provide evidence that enterprise architecture maturity directly influences the effectiveness of hospitals' IT resources for achieving strategic goals. Further, enterprise architecture maturity indirectly influences the effectiveness of IT resources when IT alignment is incorporated as a mediating variable. We discuss the implications of our findings for research and practice and suggest opportunities for future research.     

Mixed results in strategic IT alignment research: a synthesis and empirical study

The alignment of business strategy and IT has been a top managerial concern for decades. Yet despite much investigation, the effect of strategic IT alignment on organizational performance remains unclear, with mixed results reported in the literature. The purpose of this paper is to advance our understanding of mixed findings in IT alignment research. We first examine inconsistent findings reported in two streams of alignment research: the traditional firm-level IT alignment literature and the emerging literature into process-level IT alignment. We then empirically investigate whether firm- and process-level conceptualizations of IT alignment lead to different conclusions about the effect of alignment on performance. Using data from a survey of 120 firms, we show that firm-level IT alignment and process-level IT alignment yield different conclusions when testing the same theory under the same conditions. We also show that differences in firms’ strategic orientations can help explain these results. This research provides evidence that firm- and process-level conceptualizations of IT alignment are not interchangeable and that the choice of conceptualization can mean the difference between accepting and rejecting a theory.     

Knowledge transfer,translation and transformation in the work of information technology architects

ContextInformation Technology (IT) architects are the professionals responsible for designing the information systems for an organization. In order to do that, they take into account many aspects and stakeholders, including customers, software developers, the organization’s business, and its current IT infrastructure. Therefore, different aspects influence their work.ObjectiveThis paper presents results of research into how IT architects perform their work in practice and how different aspects are taken into account when an information system is developed. An understanding of IT architects’ activities allows us to better support their work. This paper extends our own previous work (Figueiredo et al., 2012) [30] by discussing aspects of knowledge management and tool support.MethodA qualitative study was conducted using semi-structured interviews for data collection and grounded theory methods (Strauss and Corbin, 1998) [5] for data analysis. Twenty-seven interviews were conducted with twenty-two interviewees from nine different companies through four cycles of data collection and analysis.ResultsCompanies divide IT architecture activities among different roles. Although these roles receive different names in different organizations, all organizations follow a similar pattern based on 3 roles: enterprise, solutions and software architects. These architects perform both the technical activities related to the IT architecture and the social activities regarding the communication and coordination with other stakeholders and among themselves. Furthermore, current tools used by IT architects lack adequate support for all these aspects.ConclusionThe activities of the different IT architects are highly interconnected and have a huge influence in the way the requirements are handled in every phase of the development of an information system. The activities of IT architects are also important for knowledge transfer, translation and transformation, since they receive from and spread information to different groups of stakeholders. We also conclude that they lack appropriate tool support, especially regarding support for their collaborative work.