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How to Identify and Measure the Level of Alignment between IT and Business Governance
KTH, School of Electrical Engineering (EES), Industrial Information and Control Systems.
KTH, School of Electrical Engineering (EES), Industrial Information and Control Systems.
2005 (English)In: proceedings of the PICMET, 2005Conference paper, Published paper (Refereed)
Abstract [en]

Studies have shown that misalignment, or the lack of alignment, between information technology (IT) and business strategies is one of the main reasons why enterprises fail to exploit the full potential of their IT investments. Within enterprise governance, the alignment between IT and business governance is becoming more important in achieving the organization’s goals by adding value and balancing business risk versus return over IT. IT governance is integral to the success of business governance by assuring efficient, and effective measurable improvements in related business processes.In order to identify and measure the level of alignment between IT governance and business governance, this article proposes a novel correlation analysis approach. The approach consists of selecting a list of IT and business processes with their respective groups of key performance indicators then developing a correlation analysis between perspectives of business balanced scorecard and IT balanced scorecard. An illustrative example of correlation analysis is presented.The main contribution of this paper consists of presenting a new perspective and preliminary concepts on how to identify and measure the level of alignment between IT and business governance by means of correlating IT and business balanced scorecards.

Place, publisher, year, edition, pages
2005.
Keyword [en]
IT Governance (ITG), Business Governance (BG), Process Simulation (PS), IT and Business Alignment (ITBA), Balanced Scorecard (BSC), ITBSC, IT Process (ITP), Business Process (BP)
National Category
Computer and Information Science
Identifiers
URN: urn:nbn:se:kth:diva-26024OAI: oai:DiVA.org:kth-26024DiVA: diva2:367627
Conference
PICMET, Portland, Oregon, USA, 2005
Note
QC 20101101Available from: 2010-11-09 Created: 2010-11-09 Last updated: 2012-03-20Bibliographically approved
In thesis
1. Strategic Business and IT Alignment: Addressing Assessment and Governance
Open this publication in new window or tab >>Strategic Business and IT Alignment: Addressing Assessment and Governance
2010 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Strategic business and IT alignment assessment is growing in importance. Different assessment methods have been used to try to pursue the complexity of this dynamic and evolutionary alignment. Despite the fact that alignment is a real problem and a challenge of utmost importance, no consensus can be found on what alignment really is, how it should be measured in the organization in practice, or what measures should be taken to maintain and improve it. Consequently, the key question about how to assess and accomplish (define, identify, measure, maintain and improve) the strategic business and IT alignment is still a great unanswered challenge for many enterprises.

In this thesis work, three main research questions were formulated: how can the validity and reliability of an alignment assessment method be improved, what are the dominant topics in the area of alignment, and how to facilitate the analysis of the business and IT governance alignment based on business process simulation and balanced scorecard methods.

This is a composite thesis work that includes an introduction and six papers (paper A-F). The main contributions and results of this thesis are described in published and included technical papers. In papers A and B an alternative organization-wide approach and metamodel for assessing strategic business and IT alignment are proposed. Two case studies were performed applying the proposed approach. In paper C, a prioritized diagram of the most widely accepted strategic alignment model, with the purpose of categorizing the most important topics in the research area of strategic business and IT alignment is presented. One of the relevant topics that were identified is governance. In papers D, E and F, there are presented a business process simulation approach and a balanced scorecard method in order to facilitate the assessment of the business and IT governance alignment. An illustrative example of the simulation approach is presented in an appendix of this thesis.

This research work aims to improve the decision-making process for business and IT managers at different levels in an enterprise by means of increasing the level of understanding and knowledge as well as by enhancing existing models and methods, for evaluating strategic business and IT alignment.

Place, publisher, year, edition, pages
Stockholm: KTH, 2010. v, 32 p.
Series
TRITA-EE, ISSN 1653-5146 ; 2010:045
Keyword
Enterprise Architecture, Strategic Business and IT Alignment, IT Governance, Business Governance, Business Process Simulation, Balanced Scorecards, IT Services, ITIL, COBIT
National Category
Computer and Information Science
Identifiers
urn:nbn:se:kth:diva-26039 (URN)
Public defence
2010-11-24, Room F3, Lindstedtsvägen 26, KTH, Stockholm, 10:00 (English)
Opponent
Supervisors
Note

QC 20101110

Available from: 2010-11-10 Created: 2010-11-10 Last updated: 2014-07-15Bibliographically approved

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