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Business and IT Governance Alignment: The Importance of Using Process Simulation
KTH, School of Electrical Engineering (EES), Industrial Information and Control Systems.
2007 (English)In: Proceedings of the Portland International Conference on Management of Technology,, 2007Conference paper, Published paper (Refereed)
Abstract [en]

IT governance is becoming more and more prominent in achieving an organization’s strategies and goals by adding value while balancing risk versus return over IT and its processes. According to ITGI, the IT governance is concerned with two problems: IT’s delivery of value to the business and mitigation of IT risk. This paper will evaluate the first one, which is driven by IT and business strategic alignment.For effective assessment of business and IT governance alignment (BITGA), enterprises need to assess how well they are currently performing and be able to identify where and how improvements can be made. This applies to the performance of both the business processes and the IT processes. This type of evaluation may be too complex and dynamic to be understood and analyzed only by static models that are adequate for answering “what” questions but not sufficient for answering “how”, “when”, “where” and “what if” ques-tions. In particular, the interactions of business and IT processes over time could result in a large number of scenarios.This paper presents the importance of using process simulation as a cost-effective method for assessing busi-ness and IT governance alignment, taking as the main reference the Hendersson and Venkatraman align-ment model. The paper argues that enterprises, in order to obtain the maximum value from their IT in-vestments, they need to identify, measure, improve and maintain a certain level of alignment between busi-ness and IT.

Place, publisher, year, edition, pages
2007.
Keyword [en]
Information Technology (IT), Process Simulation (PS), Strategic Business and IT Alignment (SBITA), Business and IT Governance Alignment (BITGA)
National Category
Computer and Information Science
Identifiers
URN: urn:nbn:se:kth:diva-26036OAI: oai:DiVA.org:kth-26036DiVA: diva2:369193
Conference
PICMET 2007
Note
QC 20101110Available from: 2010-11-10 Created: 2010-11-10 Last updated: 2012-01-31Bibliographically 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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