Addressing Business And It Alignment For Future Business Success

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Addressing Business and IT Alignment for Future Business Success There are questions that a company must address to help guarantee future success. Listed in this text are some questions that I will attempt to address: First, I will address how should companies prioritize the demands of various business units as they relate to IT; some factors that drive IT decisions; who or what is the moving force behind IT decisions; types of efficiency metrics and effectiveness metrics that IT should use; and issues with using financial metrics to evaluate IT. How do companies prioritize the demands of various business units as they relate to IT? To begin with, a companies should align IT and business objectives. In the past, IT departments have used…show more content…
According to CIO magazine, 60% of the total IT budget goes towards infrastructure assets within most companies; therefore, proper rationalization enables IT executives to identify sources of money to fund other strategic initiatives. Of course companies would want to implement new initiative while lessoning the chances for failure. Risk Reduction solutions allow information technology executives to reduce risk to their business operations from internal and external IT factors. The risk from internal factors is primarily attributed to poor planning and execution of projects and initiatives. The risk from external factors can be from competitors, suppliers, or unsatisfied customers. What drives IT decisions? Productivity is usually the main reason that drives IT decisions within companies. Companies invest in computers and devices in information technology because they believe those investments will improve their productivity. However, the impact of IT cost on a company 's productivity is not always easily apparent and sometimes onerous to quantify. IT security investments are another factor that drives IT decisions. Security is another reason that drive IT decisions. According to SC Magazine article published in February 2016, “In a recent software security analysis, 35 percent of approximately 7,000 web/desktop software applications and
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