Here is a point to add as challenge for alignment of IT strategies and business objective, business environment is constantly changing, and thus there may be no such thing as a ‘state’ of alignment. Strategic choices made by one organization frequently result in imitation by other organizations. Thus, strategic alignment is a process of change over time and continuous adaptation (Henderson and Venkatraman, 1993).
There are four steps to align the business and IT strategies:
Plan: Translate business objectives into measurable IT services, so resources are effectively allocated to maximize turnover and ROI – This step requires ongoing communication between business and IT leaders.
Model: IT designs infrastructure to increase business value and optimize operations – IT must understand business needs and ensure that they are implementing systems critical to business services.
Manage: Service is delivered based on company objectives and expectations – IT must act as a single point-of-service request, and prioritize those requests based on pre-defined priorities.
Measure: Improvement of cross-organization visibility and service level commitments – While metrics are essential, it is crucial that IT ensures a business context to what they are measuring and keeps a clear relationship between the measured parameter and business goals.
The benefits of better synchronization between business and IT
- Faster time-to-market
- Increased profitability
- Better customer experience
- Improved collaboration
- Greater industry and IT agility
- Strategic technological transformation
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