Alignment & misalignment of IT with business strategy

Posted onCategoriesSystems & Networks Admin

It is true that most of the current organizations are relying on IT services to process their daily operational and business processes. However, on the other hand, some of these organizations do not fully enjoy the benefit of these IT services as intended. To a great extend, this is dependent on the alignment between the party who provides these IT services and the party who are using these services. The degree of alignment or misalignment defer from company to company. The degree of misalignment is normally higher and commonly found among smaller companies as in the SME. On the other hand, MNC will normally have a higher degree of alignment between the providers and the users of these IT services.

Misalignment

  • Fundamentally lack of communication
    Business managers seldom communicate with IT managers and, vice versa. Business managers may always believe in their inept of technical activities. And IT managers assert that it is natural if they do not have notion of business and investment planning.
  • Improper management of IT skills
    There are no opportunities for cross-functional training of IT skill. Job transfers between IT and business do not occur. Tasks can only be performed by dedicated personnel, and resulting in high turnover.
  • Implicit plans and strategies
    Most of the time, IT department does not participate in planning of business strategies. Business managers figure out the whole plan without explicitly conveying their conclusion to IT department. Analogously, IT managers implement their technical procedures based on their own criteria.
  • Inconsistency of business goal
    Due to the absence of Communication Bridge between business and IT managers, their business goals are fundamentally inconsistent and expansion of business might be thwarted.
  • Ignorant of expertise of the other side
    Not all business personnel are IT literate and technology-savvy. Business and IT managers are not willing to touch the area of expertise which is not belonging to them. Such a fact is also similarly happening to IT personnel.

Alignment

  • Mature understanding of each others
    Business and IT managers communicate in both and effective ways. They have a wise co-ordination between them as every task is expected to be accomplished systematically in MNC.
  • IT skills are well managed
    Job transfers and cross-functional training are possible with the business entity of MNC. Every personnel are given opportunity to undergo various types of skill and knowledge training programme.
  • Group brainstorming session
    Steering personnel such as both business and IT managers are always involved in planning of business strategies and investment directions. These kinds of activities included product and branding design, marketing survey, and so forth.
  • Cultivation of identical conviction
    Through face-to-face discussion, business managers are usually be able to tell what approaches are effective and needed in solving business problems. Similarly, IT department will be able to figure out feasible applications or systems for their end users if they know well and completely comprehend the requirements.
  • Knowledge-sharing willingness
    There is a norm in MNC is that both business and IT managers are encouraged to share their knowledge and experiences, exchange enlightened opinions with one another. Business managers who are IT literate and technology-savvy could easily evaluate the abilities and flexibilities of the designed system. In addition, IT managers influence how effectively other people can or do use their systems and applications.