IT Governance: An Alignment Maturity Perspective

Aligning Information Technology (IT) and business has been a persistent and pervasive problem for over three decades. Studies show that one of the essential components for organizations seeking to improve their alignment maturity is IT Governance. This paper demonstrates the relationship between IT Governance and business performance. The Strategic Alignment Maturity Assessment (SAM) framework is applied as the foundation for relating IT Governance to company performance and to overall alignment maturity. Based on this research model, IT strategic planning, IT budgeting, and IT reaction capacity demonstrate strong contribution to the overall IT Governance maturity score. Furthermore, IT Governance has a significant impact on company performance. Although these results underscore the importance of IT Governance in alignment maturity, there is no silver bullet and the other five SAM components (Communications, Value, Partnership, Technology Scope, and Skills) must also be addressed.

[1]  Alain Abran,et al.  Software Maintenance Maturity Model (SMmm): the software maintenance process model , 2005, J. Softw. Maintenance Res. Pract..

[2]  Robert W. Zmud,et al.  Arrangements for Information Technology Governance: A Theory of Multiple Contingencies , 1999, MIS Q..

[3]  M. Forina,et al.  Multivariate calibration. , 2007, Journal of chromatography. A.

[4]  R. Peterson Crafting Information Technology Governance , 2004 .

[5]  L. Raymond,et al.  FIT IN STRATEGIC INFORMATION TECHNOLOGY MANAGEMENT RESEARCH: AN EMPIRICAL COMPARISON OF PERSPECTIVES , 2001 .

[6]  Ephraim R. McLean,et al.  Key Issues for IT Executives , 2004, MIS Q. Executive.

[7]  Jerry N. Luftman,et al.  Transforming the Enterprise: The Alignment of Business and Information Technology Strategies , 1993, IBM Syst. J..

[8]  Steven De Haes,et al.  An Exploratory Study into IT Governance Implementations and its Impact on Business/IT Alignment , 2009, Inf. Syst. Manag..

[9]  Terry Anthony Byrd,et al.  The leveraging influence of strategic alignment on IT investment: An empirical examination , 2006, Inf. Manag..

[10]  Jerry N. Luftman,et al.  An Update on Business-IT Alignment: "A Line" Has Been Drawn , 2007, MIS Q. Executive.

[11]  Yolande E. Chan,et al.  Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment , 1997, Inf. Syst. Res..

[12]  Jerry N. Luftman Competing in the Information Age: Align in the Sand , 2003 .

[13]  L. Diamond IT Governance : How Top Performers Manage IT Decision Rights for Superior Results , 2005 .

[14]  William R. King,et al.  Integration between Business Planning and Information Systems Planning: An Evolutionary-Contingency Perspective , 1997, J. Manag. Inf. Syst..

[15]  Eduardo Henrique Rigoni Alinhamento estratégico entre negócios e tecnologia da informação : práticas promovidas em empresas industriais da região sul do Brasil , 2006 .

[16]  Michael C. Jensen,et al.  Divisional Performance Measurement , 1998 .

[17]  Qing Hu,et al.  Aligning IT with Firm Business Strategies Using the Balance Scorecard System , 2005, Proceedings of the 38th Annual Hawaii International Conference on System Sciences.

[18]  B. Kowalski,et al.  Partial least-squares regression: a tutorial , 1986 .

[19]  Richard R. Reilly,et al.  Identification of factors affecting the maturity of it-business strategic alignment , 2004 .

[20]  Kenneth L. Kraemer,et al.  A Process-oriented Assessment of the Alignment of Information Systems and Business Strategy: Implications for IT Business Value , 1999 .

[21]  Jason Bennett Thatcher,et al.  Antecedents and outcomes of strategic IS alignment: an empirical investigation , 2006, IEEE Transactions on Engineering Management.

[22]  Laurence Lock Lee IT Governance in a Networked World - Multi-Sourcing Strategies and Social Capital for Corporate Computing , 2009, IT Governance in a Networked World.

[23]  William J. Kettinger,et al.  Information Orientation: The Link to Business Performance , 2001 .

[24]  C. Ong,et al.  Management of information technology investment: A framework based on a Real Options and Mean–Variance theory perspective , 2008 .

[25]  T. S. Raghunathan,et al.  Impact of the CEO's participation on information systems steering committees , 1992 .

[26]  N. Venkatraman Beyond Outsourcing: Managing IT Resources as a Value Center , 1997 .

[27]  Alexander Hars,et al.  Web Based Knowledge Infrastructures for the Sciences: An Adaptive Document , 2000, Commun. Assoc. Inf. Syst..

[28]  H. Joseph Wen,et al.  Strategic Information Technology Prioritization , 2006, J. Comput. Inf. Syst..

[29]  Toni M. Somers,et al.  The Effects of MIS Steering Committees on Information Technology Management Sophistication , 2000, J. Manag. Inf. Syst..

[30]  Carol V. Brown,et al.  Alignment of the IS Functions With the Enterprise: Toward a Model of Antecedents , 1994, MIS Q..

[31]  Jerry N. Luftman Key Issues for IT Executives 2004 , 2005, MIS Q. Executive.

[32]  Brian Whitworth,et al.  Leading IT Flexibility: Anticipation, Agility and Adaptability , 2005, AMCIS.

[33]  William R. King,et al.  Assessing the impact of integrating business planning and IS planning , 1996, Inf. Manag..

[34]  Ven Sriram,et al.  Information technology investments in purchasing: an empirical investigation of communications, relationship and performance outcomes , 2004 .

[35]  R. E. Maes,et al.  Redefining business: IT alignment through a unified framework , 2000 .

[36]  Susan Bailey,et al.  Organization Antecedents of Successful IT Management , 2006, Proceedings of the 39th Annual Hawaii International Conference on System Sciences (HICSS'06).

[37]  Jerry N. Luftman Managing the Information Technology Resource: Leadership in the Information Age , 2003 .

[38]  Jerry N. Luftman Assessing Business-IT Alignment Maturity , 2000, Commun. Assoc. Inf. Syst..

[39]  Albert Boonstra,et al.  Structure and analysis of IS decision-making processes , 2003, Eur. J. Inf. Syst..

[40]  Gwo-Guang Lee,et al.  Organizational mechanisms for successful IS/IT strategic planning in the digital era , 2003 .

[41]  Rajiv Sabherwal,et al.  Alignment Between Business and IS Strategies: A Study of Prospectors, Analyzers, and Defenders , 2001, Inf. Syst. Res..

[42]  Izak Benbasat,et al.  Measuring the Linkage Between Business and Information Technology Objectives , 1996, MIS Q..

[43]  W. V. Grembergen,et al.  Structures, Processes and Relational Mechanisms for IT Governance , 2004 .

[44]  Jerry N. Luftman Competing in the Information Age , 2003 .

[45]  Tomasz Smaczny Is an alignment between business and information technology the appropriate paradigm to manage IT in today’s organisations? , 2001 .

[46]  John C. Henderson,et al.  Strategic Alignment: Leveraging Information Technology for Transforming Organizations , 1993, IBM Syst. J..

[47]  T. E. Marshall,et al.  Relating information technology investment to organizational performance: a causal model analysis , 1997 .

[48]  Edison de Oliveira Freire Filho Safári de estratégia , 2001 .

[49]  Richard Kramer,et al.  Chemometric Techniques For Quantitative Analysis , 1998 .

[50]  Angappa Gunasekaran,et al.  A model for investment justification in information technology projects , 2001, Int. J. Inf. Manag..

[51]  L. Parker Divisional performance measurement: beyond an exclusive profit test , 1979 .

[52]  Gary Klein,et al.  Project selection criteria by strategic orientation , 1999, Inf. Manag..

[53]  R. Little A Test of Missing Completely at Random for Multivariate Data with Missing Values , 1988 .

[54]  H. Abdi Partial Least Squares (PLS) Regression. , 2003 .