For nearly 3 decades, professionals and researcher centers have identified the lack of alignment as an opportunity for researches who have proposed different alignment models and methodologies to help solve this riddle.
After question one - ? Now, once this is clarified, here comes the next question, ITIL was first released to the public in the late eighties and was created by the Central Computer and Telecommunications Agency (CCTA), an office of the British government, and as such was and still is vendor-neutral (Best Management Practice, 2009). The last edition of ITIL books was consistently improved and released by the Cabinet Office on July 29 th , 2011
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Financial Management for IT Services enables an IT service provider to play a strategic role in the business – (Budgeting, accounting and charging) Service Level Management is responsible for agreeing and documenting service level targets and responsibilities within SLAs Availability Management ensures that the level of availability delivered in all IT services meets the agreed availability needs and/or service level targets in a cost-effective and timely manner IT Service Continuity Management managing the risks that could seriously affect IT services an thus Organisation operations Capacity Management capacity of IT services and the IT infrastructure meets the agreed capacity and performance-related requirements in a cost-effective and timely manner Incident Management is in charge to restore normal service operation as quickly as possible and minimize the adverse impact on business operations Problem Management manages the lifecycle of all problems from first identification through further investigation (RCA) Change Management gets the control of the lifecycle of all changes Release & Deployment Management plans, schedule and control the build, test and deployment of releases Service Asset & Configuration Management ensures that the assets required to deliver services are properly controlled Service Desk First Point of Contact
Communications Maturity is the effective exchange of ideas and a clear understanding of what it takes to ensure successful strategies are high on the list of enablers and inhibitors to alignment Business Value Measurements Maturity is necessary when too many IT organizations cannot demonstrate their value to the business in terms that the business understands. Frequently, business and IT metrics of value differ Governance Maturity takes the considerations for IT governance that includes how the authority for resources, risk, conflict resolution, and responsibility for IT is shared among business partners, IT management and service providers Business Relationship Management Maturity considers the relationship that exists among the business and IT organizations is another criterion that ranks high among the enablers and inhibitors of alignment (Luftman, 2008). Technology Scope Maturity this set of criteria assesses the extent to which IT is able to; 1) Go beyond the back office and the front office of the organization Skills Maturity encompasses all IT human resource considerations, such as how to hire and fire, motivate, train and educate, and culture
IT Organizations that shows a higher maturity in ITIL processes shows a strong correlation within Businesses that have a higher maturity levels in dimensions as follows
What this research has found is that yes
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To provide a representation of each organization’s alignment maturity level at the time of the study, a cross-sectional design was employed utilizing 12 survey assessment instruments that were developed based on ITIL theory and Strategic Alignment Model. RESEARCH METHOD To provide a representation of each organization’s alignment maturity level at the time of the study, a cross-sectional design was employed utilizing 12 survey assessment instruments that were developed based on ITIL theory and Strategic Alignment Model. INSTRUMENT DEVELOPMENT The alignment instrument were developed using Likert items for the scales to be able to measure maturity levels (do not confuse this with CMM model). To assess the maturity of each variable all of the ITIL instruments were developed using nominal scales and each item were assessed on a dichotomous scale (do not confuse this with CMM model). The ITIL processes were operationalized as independent variables and the alignment model operationalized as dependent variable through a congruence matrix.
1. A COMPETITIVE ADVANTAGE THROUGH IT/BUSINESS ALIGNMENT Mauricio Corona, Ph.D. New Orleans March 2, 2012Scientific researchsponsored by: 1
2. Agenda3.The research4.Research questions and background5.Variables6.Main findings7.Main conclusions 2
3. AudienceAcademy of International BusinessAmerican Accounting AssociationAssociation for Business CommunicationAssociation of Business Information SystemsAssociation of Collegiate Marketing EducatorsDecision Sciences Institute – SouthwestSouthwest Academy of ManagementSouthwest Case Research AssociationSouthwestern Finance AssociationSouthwestern Society of Economists 3
4. The researchAddressing the dilemma of InformationTechnologies (IT)/Business alignment is anextremely important area to investigate.IT/Business Alignment is considered as a mainimportant issue in order to harmonize ITstrategic goals with organizational goals(Tapscott & Caton, 1993). 4
5. The researchRecent studies have found a positive correlationbetween high levels of IT/Business alignment andhigh levels of Competitive Advantage forBusinesses (Luftman, 2008).These findings add credence to the importanceof achieving a high level of maturity in theIT/Business alignment. Information Business Technology Alignment1. (Hu and Huang, 2005; Duffy, 2002; Marchand, Kettinger and Rollins, 2001; Bergeron, Raymond and Rivard, 2001; Maes,Rijsenbrij, Truijens and Gondola, 2000; Reich and Benbasat, 1996, 2000; Tallon and Kraemer, 1998; Teo and King, 1996, 1997; 5Luftman, 2000; Henderson and Venkatraman, 1993)
6. Research QuestionsIs it important to get IT/Business alignment?How can organizations get the IT/Business alignment?Most executives and organizations are turning to see “the promiseof ITIL (Information technology infrastructure Library)” 6
7. Research backgroundThis research has been conducted formore than 5 years. Main objectiveTo find if there is any kind ofcorrelation between the maturity ofsome ITIL processes and the maturityof the alignment dimensionsconsidered as part of the alignmentphenomenon. 7
8. ITIL variablesThe ITIL processes and function weretranslated into variables: 8
9. Alignment variablesTo assess the alignment variables the research is based on(Luftman’s, 2006) strategic alignment model. This model wasadopted and adapted to the context of this research, the maindimensions translated into variables are: 9
10. Main Findings 10
11. Main Findings 11
12. Main Findings 12
13. Main ConclusionsThe answer to the question, is it true that ITIL processes have aninfluence in IT/Business alignment?Yes, some ITIL processes have shown that have a strong correlationin some alignment dimensions (but not in all of the alignmentdimensions).Not only the tactical or strategic processes have influence inIT/Business alignment, Operational processes do have an influenceon IT/Business alignment.To get full alignment organizations must be complementedwith the adoption of other kind of processes. 13
14. Limitations• Maturity of ITIL processes in some organizations.• Time to answer all of the questionnaires.• Access to resources.• Time to run more statistical analysis. 14
15. Questions! 15
16. Support slides for questions
17. RESEARCH METHODTo provide a representation of eachorganization’s alignment maturity level at thetime of the study, a cross-sectional designwas employed utilizing 12 surveyassessment instruments that weredeveloped based on ITIL theory andStrategic Alignment Model.
18. INSTRUMENT DEVELOPMENTThe alignment instrument were developed using Likertitems for the scales to be able to measure maturity levels(do not confuse this with CMM model).To assess the maturity of each variable all of the ITILinstruments were developed using nominal scales andeach item were assessed on a dichotomous scale (do notconfuse this with CMM model). The ITIL processes wereoperationalized as independent variables and the alignmentmodel operationalized as dependent variable through acongruence matrix.
19. Outputs from Atlas Ti 19
20. Cronbach Alpha 20
21. Chi-square sample • Chi C < Chi T ∴ can’t reject H0. 1. Ho:xy1=o • Chi C > Chi T ∴ H0 is rejected. • Ho:xy2=o • Chi C < Chi T ∴ can’t reject H0. • Ho:xy3=o a. Chi C < Chi T ∴ can’t reject H0. • Ho:xy4=o a. Chi C > Chi T ∴ H0 is rejected. 5. Ho:xy5=o • Chi C > Chi T ∴ H0 is rejected. 6. Ho:xy6=o 21