Strategic Alignment Essay

2339 WordsSep 13, 201510 Pages
Strategic Alignment of Business and IT Contents Executive Summary Alignment of IT Strategy with Business Strategy Introduction Challenges associated with aligning business strategy and IT Example of an unaligned IT and business Strategy Consequences of not aligning IT and business Strategies Guiding Principles and Good Practices Conclusion References Executive Summary “Information technology and business are becoming inextricably interwoven. I don't think anybody can talk meaningfully about one without the talking about the other”. This above quote from Bill Gates probably gives a brief idea of what IT means in the context of business in today’s fast changing world. “Technology not for technology’s sake but for the sake of business”, this is the mantra of many organizations investing heavily on the new IT systems. Yet, companies are not aligning IT strategies with business objectives, even though they recognize the crucial value played by IT, thus leading to poor results. Today, nearly every business process in most organization relies on effective information technology systems. Most corporations expect the technology driven transformation to help them enable the business to * Gain competitive advantage. * Standardize the processes using the new technology. * Implement new business strategies. According to a survey by Datacenter Dynamics, more than a third of the CIO’s questioned believe that their board thinks IT to be critical for the success of their business, but only three percent said that their IT is fully aligned to their business objectives. Interestingly, just seven percent report that IT and business are completely separated. Given this state of misalignment between IT and business, this report probes in depth the consequences of not having IT strategy aligned with business strategy. Until

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