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IT - Business Alignment
This document summarizes research presented on achieving competitive advantage through IT/business alignment. The research examined the relationship between maturity of ITIL processes and dimensions of IT/business alignment. Several ITIL processes were found to have a strong correlation with some alignment dimensions, indicating ITIL processes can influence alignment. However, full alignment requires complementing ITIL with other processes. The research was conducted over 5 years using surveys to assess alignment and ITIL maturity levels in organizations.
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IT - Business Alignment
- 1. A COMPETITIVE ADVANTAGETHROUGH IT/BUSINESS ALIGNMENT Mauricio Corona, Ph.D. New Orleans March 2, 2012 Scientific research sponsored by: 1
- 2. Agenda 3.The research 4.Research questionsand background 5.Variables 6.Main findings 7.Main conclusions 2
- 3. Audience Academy of InternationalBusiness American Accounting Association Association for Business Communication Association of Business Information Systems Association of Collegiate Marketing Educators Decision Sciences Institute – Southwest Southwest Academy of Management Southwest Case Research Association Southwestern Finance Association Southwestern Society of Economists 3
- 4. The research Addressing thedilemma of Information Technologies (IT)/Business alignment is an extremely important area to investigate. IT/Business Alignment is considered as a main important issue in order to harmonize IT strategic goals with organizational goals (Tapscott & Caton, 1993). 4
- 5. The research Recent studieshave found a positive correlation between high levels of IT/Business alignment and high levels of Competitive Advantage for Businesses (Luftman, 2008). These findings add credence to the importance of achieving a high level of maturity in the IT/Business alignment. Information Business Technology Alignment 1. (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; 5 Luftman, 2000; Henderson and Venkatraman, 1993)
- 6. Research Questions Is itimportant to get IT/Business alignment? How can organizations get the IT/Business alignment? Most executives and organizations are turning to see “the promise of ITIL (Information technology infrastructure Library)” 6
- 7. Research background This researchhas been conducted for more than 5 years. Main objective To find if there is any kind of correlation between the maturity of some ITIL processes and the maturity of the alignment dimensions considered as part of the alignment phenomenon. 7
- 8. ITIL variables The ITILprocesses and function were translated into variables: 8
- 9. Alignment variables To assessthe alignment variables the research is based on (Luftman’s, 2006) strategic alignment model. This model was adopted and adapted to the context of this research, the main dimensions translated into variables are: 9
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- 13. Main Conclusions The answerto the question, is it true that ITIL processes have an influence in IT/Business alignment? Yes, some ITIL processes have shown that have a strong correlation in some alignment dimensions (but not in all of the alignment dimensions). Not only the tactical or strategic processes have influence in IT/Business alignment, Operational processes do have an influence on IT/Business alignment. To get full alignment organizations must be complemented with the adoption of other kind of processes. 13
- 14. Limitations • Maturity ofITIL 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 forquestions
- 17. RESEARCH METHOD To providea 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.
- 18. INSTRUMENT DEVELOPMENT The alignmentinstrument 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.
- 19. Outputs from AtlasTi 19
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- 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
Editor's Notes
- #2 Agregar notas en los slides
- #6 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.
- #7 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
- #8 In order to analyze more precisely this situation, Photo http://es.123rf.com/photo_7066495_investigacion-palabra-collage-sobre-fondo-blanco.html
- #9 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
- #10 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
- #11 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
- #14 What this research has found is that yes
- #16 Agregar notas en los slides
- #22 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.