Business and IT Governance Alignment: The Importance of Using Process Simulation
2007 (English)In: Proceedings of the Portland International Conference on Management of Technology,, 2007Conference paper (Refereed)
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
Information Technology (IT), Process Simulation (PS), Strategic Business and IT Alignment (SBITA), Business and IT Governance Alignment (BITGA)
Computer and Information Science
IdentifiersURN: urn:nbn:se:kth:diva-26036OAI: oai:DiVA.org:kth-26036DiVA: diva2:369193
QC 201011102010-11-102010-11-102012-01-31Bibliographically approved