Information Technology Business Alignment - Coursework Example

Falling into the alignment trap could happen not only because of misalignment between IT and business but also due to the complexity of the system.

This essay aims at reviewing how IT should be greater aligned with the business requirements and strategic goals in order to avoid falling into the misalignment trap. This goal could be achieved by realizing that IT has become a critical tool -or even a driver- for the achievement of business strategic goals. The essay defines “IT-business alignment” and “IT governance” and the relationship between them in the first place. Then, it gives an idea about the importance of IT-business alignment, IT business alignment current state in order to realize the gap between IT and business strategic goals and the increasing awareness and need for alignment.

Finally, the essay provides IT governance mechanisms and practices as a way for implementing IT-business alignment and some critical success factors besides IT business alignment future directions.

First of all, to realize exactly what is meant by the IT business alignment concept, the essay will define the “IT-business alignment” concept talking into consideration that “the history of theory-building around the concept of alignment is still young and has only been going on approximately 15 years” Ekstedt, Mathias et al (2005). Tapia, Roberto Santana (2006) gives a simple definition for IT Business alignment as “the problem of matching services offered by IT with the requirements of the business”. Also, Kavin W. Moody (2003) mentioned, “the term IT alignment is generally used in reference to the alignment of an organization’s IT resources with the objectives of its business units”.

Neil Macehiter and Neil Ward-Dutton (2005), define IT-business alignment as “the process through which business people and IT delivery organizations collaborate to create an environment in which investment in IT and delivery of IT services reflect business priorities, whether IT services are sourced internally or externally; and in which business priorities are influenced by an understanding of IT capabilities and limitations.”

So, according to this definition, there are three important elements in IT-business alignment: (1) investment, (2) service delivery, and (3) collaboration in change management.

The relationship between the alignment and IT governance is shown in Figure (1). Steven De Haes and Wim Van Grembergen (2004) concluded that IT-business alignment is the key element in IT governance so, it can be achieved by acknowledging IT governance as a part of enterprise governance and by setting up an IT governance framework with best practices”. They define IT governance as “the leadership and organizational structures, processes and relational mechanisms that ensure that an organization IT sustains and extends its strategy and objectives”. However, Ortiz, Aurora Sanchez (2003) defines IT governance as “specifying the decision rights and accountability framework to encourage desirable behavior in the use of IT”.
After defining IT business alignment giving its elements and its relationship with IT governance, the essay will discuss the transformation of the role of IT in business in order to realize the importance and the need for IT-business alignment.