Linking the Strategic Importance of ICT with Investment in Business-ICT Alignment: An Explorative Framework

In this article, we introduce a framework that can be used by organizations as a positioning instrument to think of business-ICT alignment decisions in light of the strategic importance of ICT (Information and Communication Technology) in their organization. We make a distinction between organizations where ICT is of high strategic importance and those where ICT is of low strategic importance. Based on this difference we argue that heavily investing in business-ICT alignment processes, structures and roles (PSRs) will not necessarily always be beneficial when ICT is of low strategic importance to the business. Furthermore, organizations that have a minimalist approach to the use of ICT do not necessarily need to invest in business-ICT alignment PSRs. We explain the dynamics and possible migration scenarios of our proposed framework after testing the statistical significance of the relationship between the strategic importance of ICT and the investment in business-ICT alignment. We end this article with a short empirical study which combines survey and case study results. Both the framework and framework dynamics still need further empirical validation, preferably with longitudinal data. Therefore, we stress and acknowledge that many of the discussions in this article are still explorative in nature. However, this article illustrates the possibilities and the need for a more fine-grained approach to business-ICT alignment.

[1]  R. Saull,et al.  Linking the IT Balanced Scorecard to the Business Objectives at a Major Canadian Financial group , 2003 .

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

[3]  John M. Artz.  From Web Log to Data Warehouse: An Evolving Example , 2001 .

[4]  Matthias Goeken,et al.  The Impact of IT Resources on the IT Business Value: Evidence From a Systematic Literature Review , 2011, Int. J. IT Bus. Alignment Gov..

[5]  Walter Brenner,et al.  Finding Balanced Scorecards for Business Driven IT Service Portfolio Management: A Literature Review , 2012, Int. J. IT Bus. Alignment Gov..

[6]  W. Dugger.  The Economic Institutions of Capitalism , 1987 .

[7]  Subhasish Dasgupta,et al.  Managing Internet and Intranet Technologies in Organizations: Challenges and Opportunities , 2000 .

[8]  Guido Dedene,et al.  Managing for Better Business-IT Alignment , 2006, IT Professional.

[9]  Yurong Yao,et al.  Concerns and solutions on electronic voting systems adoption , 2003 .

[10]  Jerry N. Luftman.  Assessing It/Business Alignment , 2003, Inf. Syst. Manag..

[11]  F. McFarlan,et al.  Corporate Information Systems Management: Issues Facing Senior Executives , 1995 .

[12]  W. V. Grembergen.  Strategies for Information Technology Governance , 2003 .

[13]  O. Williamson,et al.  Markets and Hierarchies: Analysis and Antitrust Implications. , 1977 .

[14]  Raymond R. Panko.  Security: The Snake in the E-Commerce Garden , 2001 .

[15]  Bill Walton,et al.  From Business Strategy to IT Action: Right Decisions for a Better Bottom Line , 2004 .

[16]  Onno Truijens,et al.  Towards a Theory of Information Strategy: Exploiting Market Opaqueness in Search for InfoRent , 2008 .

[17]  I M Pandey,et al.  Governance of Higher Education Institutions , 2004 .

[18]  Soongoo Hong,et al.  Objective quality ranking of computing journals , 2003, CACM.

[19]  P. Weill,et al.  Leveraging the New Infrastructure: How Market Leaders Capitalize on Information Technology , 1998 .

[20]  Johan Magnusson,et al.  Professional Analysts and the Ongoing Construction of IT Governance , 2010, Int. J. IT Bus. Alignment Gov..

[21]  Daniel Beimborn,et al.  The Social Antecedents of Business/IT Alignment: Reviewing the Role of Social Network Structure in Alignment Research , 2011, Int. J. IT Bus. Alignment Gov..

[22]  Gerry Gingrich,et al.  Managing It in Government, Business and Communities , 2003 .