CURRENT SITUATION: According to the article, “Avoiding the Alignment trap in information technology”, 75% of IT projects fail to deliver the expected functionality, timing and cost. According to survey results, two major patterns lead to failure of IT: alignment and efficiency. Alignment is the degree to which the IT group understands the priorities of the business and expends its resources, pursues projects ad provides information consistent with them. This case recognized the following four IT alignment quadrants that companies fall into as followed: 1. Alignment Trap: This situation arises when business's IT is highly aligned but are not highly effective. According to the case, 11% of the companies surveyed were in this quadrant. Their IT spending was 13% higher then the average company yet they had 14% lower revenue growth on average over three years. Schwab & Co. is an example used in the case and they were spending 18% of their revenue on IT compared to the 13% leading competitors were spending and even then the progress of several of their big ambitious projects were preventing the company from responding effectively to competitors. 2. Maintenance Zone: This situation arises when business’s IT capabilities are neither highly aligned nor are they highly effective. According to the case, three quarters of the surveyed companies found them selves to be in this quadrant, which is underneath the Alignment Trap. Companies in this quadrant record a slower rate of
The purpose of this article is to illuminate the need for any organization to have its IT strategy and business strategy properly aligned. While many organizations view IT and business alignment as an event – it is actually an on-going process, or continuous journey. Therefore, the main problem is that many organizations of today still hold these two principles (business mission & IT strategy) as two separate entities. However, in the Information Age – collaboration is key to capturing and retaining market penetration. To not have alignment with the IT and business strategy together is not a matter of want it is a matter of survival. This report will expand upon the need for business and IT strategic alignment as well as examine what happens in lack of a comprehensive plan. This will be done by examining the Vermont Teddy Bear company prior to and after the arrival of Bob Stetzel, the Vice President of Information Technology. This document will view it findings and make recommendations on the immediate and future operations of the company.
With a specific end goal to consolidate a wide range of IT activities and advantage from them, the whole organizations IT strategy must be reengineered to cooperate. Instead of looking at IT as a unit itself, intergrading it into the business as a whole and making it work towards a common goal will make worth in the organization. The consequent strides should be refined in each segment of ModMeters to achieve their requests.
Business Plan Alignment: aligning plans of the use of the software with the organizations business plans.
Architecture must be developed in order to oversee IT strategy to benefit the whole organizational enterprise. Centralizing IT strategy at the start of the new business strategies will be important to make sure IT and business are working together with common goals that deliver the most value. The following steps are to be completed within each department:
In order to leverage IT for the benefit of the whole organization enterprise architecture must be developed to oversee IT strategy. Centralizing IT strategy at the start of the new business strategies will be important to make sure IT and business are working together with common goals that deliver the most value. The following steps are to be completed within each department:
In the market today, business is showing growing interest to partner with IT to make sure they get the value for investing huge in technology. But, still there is a gap between the two departments and the IT folks think that they do not have enough support from the business to ensure the value is realized for the organization. A good example of deep integration of IT and business is the recent firing of the Apple maps chief. The ill-fated Apple maps was the failure of both the IT folks who couldn’t develop an efficient app for maps and also the business who couldn’t gather all the requirements and couldn’t manage the project to achieve the desired output. As a result, the Apple exec Richard Williamson was blamed and fired for the disastrous project and humiliation for the organization.
The role played by the IT in the company to the rest of the organization is reactive to business conditions rather than a proactive approach. IT has been busy establishing several IT processes, policies, and projects in order to catch up with current demand from customers, and has been relying on the “diving catch” approach of finishing things at the very last minute.
Alignment of an enterprise’s goals with its IT1 and IS1 systems has been a challenge ever since IT became a business enabler. Proposing an IT alignment requires a thorough understanding of the business goals of the enterprise and the knowledge that alignment is an iterative process which requires constant measurement and honing (Chan, 2002). Enterprises often face the problem of balance of priorities between IT and Business objectives. This report deals with one such case that faced alignment and prioritization hardships resulting in an unclear approach to achieve a corporate strategy.
How effective is the collaboration between business and IT at Hefty Hardware? Determine the deficiency of both business and IT.
The partnership at Hefty Hardware between IT and the business is not effective. One of the core problems faced by Hefty Hardware was the lack of a productive, working relationship between the company’s IT and business divisions. The four building blocks needed for a foundation on which a solid relationship could be constructed; competence, credibility, interpersonal interactions, and trust, were not present between the two divisions (McKeen & Smith, 2012). The business division felt IT lacked competence when dealing with business needs, demonstrated by the IT department not having knowledge of Hefty Hardware’s basic business concerns, goals or processes.
The structure used to create recommendations acknowledge the gaps and provide a clear plan of action to improve the alignement rating to “high” = 3. The critical misalignments are Technology, Innovation and Customer Centricity. Recommended impacts on management practices are also highlighted.
Information Technology (IT): The hardware and software technologies a firm needs to achieve its business objectives (Kenneth C Laudon and Jane P Laudon., 2010).
Porter’s Five Forces model could be used to generate IT strategies. Provide and explain ten (10) strategies as examples. (two (2) strategies for each of the five forces)
This paper will discuss the processes and pitfalls faced by Information Technology managers in today’s world of business. Today’s IT managers need not only be savvy about existing equipment and upcoming technology; but must also understand the budget issues they face and how to properly address them. The IT manager is asked to look into a crystal ball and predict what products will be beneficial and which requirements can be cut from the budget. They must be able to differentiate between the new shiny fad and products that will be a true asset to the company’s visions and goals. An IT budget can no longer be a static number on the company’s finance sheet; it must be a clear vision of the department’s future spending while falling in line with the goals and expectations of the company.
Frenzel (2004) claimed that to be successful, a firm’s IT management team must take action on the following critical areas: business management issues; strategic and competitive issues; planning and implementation concerns; and operational items. If for any reason, the organisation experiences difficulties in the above areas, the manager will need to set goals and objectives to overcome and prevent these issues.