Chapter 3 Strategic Alignment Maturity
-
Upload
graham-cleveland -
Category
Documents
-
view
120 -
download
7
description
Transcript of Chapter 3 Strategic Alignment Maturity
ICT 622ICT 622 11
Chapter 3Chapter 3Strategic Alignment MaturityStrategic Alignment Maturity
Paula GouldingPaula Goulding
ICT 622ICT 622 22
Chapter OutlineChapter Outline
Importance of IT and business environmentImportance of IT and business environment Enablers and inhibitors to alignmentEnablers and inhibitors to alignment Concept/importance of alignment maturityConcept/importance of alignment maturity 5 levels of Strategic Alignment Maturity5 levels of Strategic Alignment Maturity 6 Criteria that characterize levels of Strategic 6 Criteria that characterize levels of Strategic
Alignment ModelAlignment Model Assessing Strategic Alignment MaturityAssessing Strategic Alignment Maturity Strategic Alignment ProcessStrategic Alignment Process
ICT 622ICT 622 33
Importance of AlignmentImportance of Alignment
EffectivenessEffectiveness EfficiencyEfficiency Link Technology and BusinessLink Technology and Business
ICT 622ICT 622 44
IT Management Should:IT Management Should: Be knowledgeable about how new IT Be knowledgeable about how new IT
technologies can be integrated into technologies can be integrated into businessbusiness
Be privy to senior management's tactical Be privy to senior management's tactical and strategic plansand strategic plans
Be present when corporate strategies are Be present when corporate strategies are discusseddiscussed
Understand strengths and weaknesses of Understand strengths and weaknesses of technologies and implicationstechnologies and implications
ICT 622ICT 622 55
Strategic Alignment Maturity LevelsStrategic Alignment Maturity Levels Initial/Ad Hoc ProcessInitial/Ad Hoc Process
– Business and IT not alignedBusiness and IT not aligned
Committed ProcessCommitted Process– Organization commits to becoming alignedOrganization commits to becoming aligned
Established Focused ProcessEstablished Focused Process– Established and Focused on business objectivesEstablished and Focused on business objectives
Improved/Managed ProcessImproved/Managed Process– Reinforcing concept of IT as “Value Center”Reinforcing concept of IT as “Value Center”
Optimized ProcessOptimized Process– Integrated/Co-adaptive business and IT strategic planningIntegrated/Co-adaptive business and IT strategic planning
ICT 622ICT 622 66
ICT 622ICT 622 77
Strategic Alignment Maturity CriteriaStrategic Alignment Maturity Criteria
Communications Communications Competency/value measurementsCompetency/value measurements GovernanceGovernance PartnershipsPartnerships Scope and ArchitectureScope and Architecture SkillsSkills
ICT 622ICT 622 88
ICT 622ICT 622 99
Primary Objective of Assessment:Primary Objective of Assessment:
Agree that criterion needs to be improvedAgree that criterion needs to be improved Agree that a criterion is good, but can be Agree that a criterion is good, but can be
betterbetter Disagree with how good/bad a criterion isDisagree with how good/bad a criterion is
ICT 622ICT 622 1010
CommunicationsCommunications
Ensure ongoing knowledge sharingEnsure ongoing knowledge sharing Use people in formal inter-unit liaison rolesUse people in formal inter-unit liaison roles Cooperation among business-IT partnersCooperation among business-IT partners Trust and openness between units and ITTrust and openness between units and IT
ICT 622ICT 622 1111
Competency/Value MeasurementsCompetency/Value Measurements
Service levels that assess commitment of ITService levels that assess commitment of IT Tie service levels to criteriaTie service levels to criteria Take action based on measurements of Take action based on measurements of
performance factorsperformance factors Understand factors that lead to missing Understand factors that lead to missing
criteriacriteria Understand what can be learned to improve Understand what can be learned to improve
the environment continuouslythe environment continuously
ICT 622ICT 622 1212
GovernanceGovernance
Clearly defined decision-making authorityClearly defined decision-making authority Integrated enterprise-wide strategic Integrated enterprise-wide strategic
business planbusiness plan
ICT 622ICT 622 1313
PartnershipPartnership
Relationship between business and IT Relationship between business and IT organizationsorganizations
Give IT function equal role in defining Give IT function equal role in defining business strategybusiness strategy
Perception of contributionsPerception of contributions Partnership should enable and drive changePartnership should enable and drive change
ICT 622ICT 622 1414
Scope and ArchitectureScope and Architecture Go beyond back office and into front officeGo beyond back office and into front office Assume role supporting flexible Assume role supporting flexible
infrastructureinfrastructure Evaluate and apply emerging technologies Evaluate and apply emerging technologies
effectivelyeffectively Enable or drive business processes and Enable or drive business processes and
strategiesstrategies Provide solutions customizable to Provide solutions customizable to
customer needscustomer needs
ICT 622ICT 622 1515
SkillsSkills
Include all human resource considerations Include all human resource considerations for organizationfor organization
Consider cultural and social environmentConsider cultural and social environment
ICT 622ICT 622 1616
Level 1 – Initial/Ad Hoc ProcessLevel 1 – Initial/Ad Hoc Process
Lowest level of strategic alignmentLowest level of strategic alignment Understanding of IT by business is lowUnderstanding of IT by business is low Investment in IT is underleveragedInvestment in IT is underleveraged
ICT 622ICT 622 1717
Level 1Level 1
ICT 622ICT 622 1818
Level 1Level 1
ICT 622ICT 622 1919
Level 1Level 1
ICT 622ICT 622 2020
Level 2 – Committed ProcessLevel 2 – Committed Process
Committed to begin process for Strategic Committed to begin process for Strategic Alignment MaturityAlignment Maturity
View IT as an asset to the organizationView IT as an asset to the organization Directed at local situations or functional Directed at local situations or functional
organizationsorganizations Alignment at the level is difficult to achieveAlignment at the level is difficult to achieve Potential opportunities are recognizedPotential opportunities are recognized
ICT 622ICT 622 2121
Level 2Level 2
ICT 622ICT 622 2222
Level 2Level 2
ICT 622ICT 622 2323
Level 2Level 2
ICT 622ICT 622 2424
Level 3 – Established Focused ProcessLevel 3 – Established Focused Process
Concentrates on governance, processes, and Concentrates on governance, processes, and communications toward specific business communications toward specific business objectivesobjectives
Needs better governance to invest IT dollarsNeeds better governance to invest IT dollars Focus on business processes that generate Focus on business processes that generate
long-lasting competitive advantagelong-lasting competitive advantage Effectively communicate its vision and get Effectively communicate its vision and get
“buy-in” from employees and management“buy-in” from employees and management
ICT 622ICT 622 2525
Level 3Level 3
ICT 622ICT 622 2626
Level 3Level 3
ICT 622ICT 622 2727
Level 3Level 3
ICT 622ICT 622 2828
Level 4 – Improved/Managed ProcessLevel 4 – Improved/Managed Process
Leverage IT assets on an enterprise-wide Leverage IT assets on an enterprise-wide basisbasis
Focus on driving business process Focus on driving business process enhancements to gain competitive advantageenhancements to gain competitive advantage
Views IT as an innovative and imaginative Views IT as an innovative and imaginative strategic contributorstrategic contributor
Capitalize on information and knowledgeCapitalize on information and knowledge Utilize IT assets by deploying enterprise-wide Utilize IT assets by deploying enterprise-wide
architecturearchitecture
ICT 622ICT 622 2929
Level 4Level 4
ICT 622ICT 622 3030
Level 4Level 4
ICT 622ICT 622 3131
Level 4Level 4
ICT 622ICT 622 3232
Level 5Level 5
ICT 622ICT 622 3333
Level 5Level 5
ICT 622ICT 622 3434
Level 5Level 5
ICT 622ICT 622 3535
Assessing Strategic Alignment MaturityAssessing Strategic Alignment Maturity
This does not fit the organization, or the This does not fit the organization, or the organization is not very effectiveorganization is not very effective
Low level of fit for the organizationLow level of fit for the organization Moderate fit for the organization, or the Moderate fit for the organization, or the
organization is moderately effectiveorganization is moderately effective Fits most of the organizationFits most of the organization Strong level of fit throughout the organization, Strong level of fit throughout the organization,
or the organization is effectiveor the organization is effective
ICT 622ICT 622 3636
Strategic Alignment ProcessStrategic Alignment Process
Set the Goals and Establish a TeamSet the Goals and Establish a Team Understand the Business-IT LogicUnderstand the Business-IT Logic Analyze and Prioritize GapsAnalyze and Prioritize Gaps Specify the Actions (Project Management)Specify the Actions (Project Management) Choose and Evaluate Success CriteriaChoose and Evaluate Success Criteria Sustain AlignmentSustain Alignment
ICT 622ICT 622 3737