IT Alignment

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.

"In 2014, Air Canada achieved its best full year financial performance in the Corporation 's 77-year history," said Calin Rovinescu, President and Chief Executive Officer. (Air Canada Website CIO 2015) Adjusted net income was $531 million, representing an increase of 56.2 per cent year-over-year.” The purpose of this paper is to examine how Air Canada in 2011 successfully aligned their business strategy and Information Technology (IT) by managing information resources on several levels to accomplish a competitive advantage over other airline carriers and gain the attention of their customers through innovation. Finally, this paper will address suggestions to achieve better Business-IT alignment to meet Air Canada’s goals for the future and continued success.

"The research on IT and business performance has found that (a) the more successfully a firm can align information technology with is business goals, the more profitable it will be." (111)

Foundation of IT in a place is very crucial for most business. Organizations can use IT resource to create innovative and strategic process that helps business to reach beyond the status quo. Organization without new technologies resources can lose momentum and fall behind in competition. On the other hand, organizations with effective and updated technologies remain competent and superior; get competitive advantage thus acquire and maintain their big market share.

1. Create or describe a strategy for your firm, as operationalized by Collis and Rukstad. Be sure to be comprehensive and specific when separately describing your

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.

Information technology has played a crucial role for WestJet Airlines. However, as the IT organization grew in the business, it was necessary for WestJet to keep up with the change so the executive team made a decision to hire a chief information officer, Cheryl Smith, who could keep WestJet’s IT systems up to the required standard (Marrone, 2015). To achieve this, “IT governance must be implemented to sustain and enable business objectives and to mitigate associated risks” (Devos et al., 2012, p.4). Therefore Smiths’ plan to transform IT focused on the five key areas of IT governance.

As the new CIO of Volkswagen of America (VWoA), Dr. Uwe Matulovic brings an impressive resume that includes ample experience in aligning business process management (BPM), business process re-engineering (BPR) and the insights necessary to create the Business Process Technology Organization (BPTO). As the IT projects within VWoA have lacked governance and are facing a severe budget shortfall of $150M, Dr. Matulovic has a formidable challenge. He must first align all existing IT projects to strategic initiatives, which is the essence of effective IT governance (Huang, Zmud, Price, 2010) and then he must define processes to stabilize these strategies yet ensure integration still occurs at the process and system level (Korac-Kakabadse, Kakabadse, 2001). All of these factors need to be taken into account as VWoA is evaluating up to 22 new models with will have an exponential, nearly chaotic impact on their existing IT systems and their ability to respond. Further, the VWoA business has continued to suffer from a lack of unified focus of IT spending to overall strategic initiatives. This lack of governance has created a process of defining IT priorities more defined by the persuasive ability of managers, their ability to build compelling Return on Investment (ROI) arguments, and

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:

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.

This case analysis discusses the findings in the article ‘Avoiding the Alignment Trap’, where even though most companies are aware that IT must be aligned with business strategy in terms of aligning IT expenses with revenue growth, over 11% of companies that align IT with business strategy spend more than 13% on average on IT expenses with a resulting of less than 14% average in revenue growth. The objective of this case analysis is to recommend a governance arrangement that will lead most companies that are currently have less effective IT alignment with business alignment to IT-enabled growth where the cost of IT more than compensates with the revenue growth of the company. The recommendation is to adopt a Duopoly

Information Technology (IT): The hardware and software technologies a firm needs to achieve its business objectives (Kenneth C Laudon and Jane P Laudon., 2010).

The present study tries to investigate role of information technology in terms of developing business in Indonesian small medium enterprises. In accordance with that, information technology business values are examined as information technology alignment maturity. Whilst the alignment literatures use a range of approaches to determine the fit between information technology and business (Tallon 2016), this research prefers to use process level alignment to get different perspective. However, this method might deliver result which illustrate not only in process level but also in corporate level view.

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.