BIT Alignemnt Paper

7/30/2019 BIT Alignemnt Paper

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FACULTIET ECONOMISCHE, SOCIALE EN POLITIEKE WETENSCHAPPEN & SOLVAY BUSINESS

SCHOOL

Information Systems

Strategy and Management

2012-2013

Analyse of paper STRATEGIC BUSINESS/IT ALINGMENT USING GOAL MODELS by Bna S.,

Ansias P-Y, Petit M. , Castiaux A.

Alexei Blokhine 93297

Professor: Jegers, M.

Prof: Dr. Casteleyn S.


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Content

1. Situation article ................................................................................................................... 3

2. Business strategy................................................................................................................. 3

3. IT Strategy ........................................................................................................................... 3

4. Introduction to Business and It alignment .......................................................................... 4

a. Concept Business/IT alignment ...................................................................................... 4

b. Venkatramans Strategic Alignment Model (SAM) ....................................................... 4

5. Goal Model and Allignment ............................................................................................... 5

a. Goal and SR model situation........................................................................................... 5

b. Goal model constraints and benefits .............................................................................. 5

c. Combinig Goal Model and SAM .................................................................................... 6

6. Conclusion .......................................................................................................................... 6


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1. Situation articleThe paper Strategic Business/IT alignment using Goal Model focuses an discusses the

relation between interview based Business/ It alignment and the SAM- model of

Venkatraman, using a goal model to analyse the Business and IT strategies.

This approach is also illustrated by two real case studies achieved within partner

enterprises (SMEs).

Using the paper, listed above, as basis, we will discourse the basics of strategies and

methodologies used, to make a business and IT alignment using a goal model.

2.

Business strategyBusiness strategy is a long term plan of action deliberated in order to achieve a

particular goal or a set of goals or/and objectives. Creating a business strategy is a core

management function. The aim of a business strategy is to strengthen a particular

business so that its performance increases and, in turn, the business becomes more

profitable. Without a business strategy, a business has no guide to follow and has an

increased risk of failure.

The business strategy of a firm is the match between its internal competences and its

external relationships. It describes how it reacts to its suppliers, its customers, its

competitors, and the social and economic environment within which it activates. 1

3. IT StrategyInformation Technology has become a key of business function for almost every

organization and most have great expectations of their investment in IT for the future

benefits to the business- expectations that will be enable the business to reduce costs,

standardized processes, enhance productivity, improve workflow and

communications, sustain repeatable service levels, improve risk control, implement

new business strategies, facilitate organic and acquisition-driven growth, gain

competitive advantage by exploiting new technology2.

1

http://books.google.be/books?hl=en&lr=&id=WhLCD4s8klIC&oi=fnd&pg=PA3&dq=business+strategies&ots=XXcVyIIKMA&sig=bt3U45t9QlBto64oANGb1q4Dl7

M p. 4

2Tallon, P., Kraemer,

K. (1999)
http://books.google.be/books?hl=en&lr=&id=WhLCD4s8klIC&oi=fnd&pg=PA3&dq=business+strategies&ots=XXcVyIIKMA&sig=bt3U45t9QlBto64oANGb1q4Dl7Mhttp://books.google.be/books?hl=en&lr=&id=WhLCD4s8klIC&oi=fnd&pg=PA3&dq=business+strategies&ots=XXcVyIIKMA&sig=bt3U45t9QlBto64oANGb1q4Dl7Mhttp://books.google.be/books?hl=en&lr=&id=WhLCD4s8klIC&oi=fnd&pg=PA3&dq=business+strategies&ots=XXcVyIIKMA&sig=bt3U45t9QlBto64oANGb1q4Dl7Mhttp://books.google.be/books?hl=en&lr=&id=WhLCD4s8klIC&oi=fnd&pg=PA3&dq=business+strategies&ots=XXcVyIIKMA&sig=bt3U45t9QlBto64oANGb1q4Dl7M


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4. Introduction to Business and It alignmenta. Concept Business/IT alignment

Strategic alignment emphases on the activities that management performs to achieve

cohesive aims across the IT and other functional organizations (e.g., finance,

marketing, H/R, manufacturing). Consequently, alignment addresses both how IT is in

harmony with the business, and how the business should, or could be in harmony with

IT.

b. Venkatramans Strategic Alignment Model (SAM)The term IT- Business alignment refers to het degree of fit between Business and IT

activities, such as Business strategy, business infrastructure, IT strategy and IT

infrastructure. Those four interactions where defined by Venkatraman into the

Strategic Alignment Model (SAM)

In this model we can distinguish four different strategic approaches linked by two

axes; the horizontal, which gives the direct alignment relation between Business and

IT, and the vertical, strategy linkage, which determines the infrastructure of the

business. The four main strategies defined by Venkatraman are:

a. Strategy Execution: This traditional, hierarchical perspective assumes that theorganization is business driven and the strategic management designs the logic of

IT infrastructure.

b. Technology Transformation: This perspective also starts with Business Strategy asa driver, but use the IT strategy approach to define an IT infrastructure that

supports the chosen Business Strategy.

c. Competitive Potential is based on exploitation of new IT opportunities. On thisbase IT determines new products, services and develop new forms of relationships.

That reflects directly on the Business Strategy and defines new organizationalstructures.

d. Service Level perspective is completely based on IT service and internalinformation flow to meet the needs of fast changing demand of the endusers.

Even though the SAM is used as a standard tool for strategic alignment measures and

improvements, the paper we analysed assumes many do still base their analysis on

subjective interviews.


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By combining interviews with Business and IS managers into a Goal model, this

approach can capture both the real life and the needed heuristics to make the interview

less subjective and more standardized.

5. Goal Model and Alignmenta. Goal and SR model situation

Business/IT goal modelling is an enterprise language which is used to identify the

business/IT goals and the hierarchy among them.

The form used is inspired by the strategic rational (SR) model of the i* framework.

The SR model describes the relationships that are "internal" to actors, such as means-

ends relationships that relate process elements, providing explicit representation of

"why" and "how" and alternatives.i

The Strategic Relational (SR) Model focuses on

actors tasks and their relations and influences on the goals, well suited to provide an

overall view, indicates how actors, their tasks, goals, soft goals and resources relate to

each other, and what are the dependencies between them.

The language is well accepted among business analysts in order to maintain an

organizational structure which is easy to understand within organizational-related

activities, important to create a standard structure for the alignment.

b. Goal model constraints and benefitsImplementing the business/IT goal model into an I* framework enables IT analysts to

examine the business requirements at an early stage of system development. By

studying the two cases, explained in the paper, the organizational actors have their

own goals and beliefs and each actor is connected to one another, and differ from IT

and Business approach.

Still the use of a goal model does contain several weakness on its own. First of all the

technique is complex to understand and provide little information on business goals, as

IT people tend to lack business knowledge and setting business goals is a complex

process. At second they are unable to support business analysts in a rapidly changing

business environment, as the techniques require a huge amount of time to implement.


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c. Combinig Goal Model and SAMOnce we have created a Business and a IT strategy goal model, we can identify and

compare the different elements simply by making Cause/Effect links. Identifying

semantic links and orientate the relationshipsby asking the question What element

existed first and which goal achievement implies achievement of the other. This

makes it possible to map those relationships into Venkotramans Strategic Alignment

Model and determine the most suitable strategy.

6. ConclusionIT is continually evolving, and through the rapid changes of industrial, social, political and

environmental sectors we can observe the importance of strategic alignment. As companies

evolve, and comprise new forms of IT-focused competitiveness, strategic alignment is likely

to assume an even greater degree of importance. With IT spending forecasted to grow at

unprecedented rates, managers have to use IT resources in the most effective and efficient

manner possible. In this paper we discussed about the combination of SAM model with the

goal models to include problems related to identification of strategy and problems related to

the method by which alignment is identified.


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Through the medium of i*, goal models determines a better decision-making process and

combining goal models analysis with SAM gives a structure for a model driven Business/IT

alignment.

The alignment of strategic business and IT using goal models is realized through the

architectural design that is going further than only a simple supporting role for IT in the

current business processes. IT is also working as activator for renewed or even totally new

business. The new IT enabled company will have new forms of organisation, new business

processes, new products, new services and new channels and relationships to the customer,

which are possible by combining the strategic business with IT in order to operate as one

whole.

7. References:8. (4)Tallon, P., Kraemer, K. (07-20-1999).A Process-oriented Assessment of the

Alignment of Information Systems and Business Strategy: Implications for IT Business

Value. eScholarship University of California. Retrieved from

http://escholarship.org/uc/item/74b1s5rk

9.10.(5) Serge, T. (22-11-2011).What does developing an IT Strategy mean. The Open

Group website. Retrieved from http://blog.opengroup.org/2011/11/22/what-does-

developing-an-it-strategy-mean/
http://escholarship.org/uc/item/74b1s5rkhttp://escholarship.org/uc/item/74b1s5rkhttp://blog.opengroup.org/2011/11/22/what-does-developing-an-it-strategy-mean/http://blog.opengroup.org/2011/11/22/what-does-developing-an-it-strategy-mean/http://blog.opengroup.org/2011/11/22/what-does-developing-an-it-strategy-mean/http://blog.opengroup.org/2011/11/22/what-does-developing-an-it-strategy-mean/http://blog.opengroup.org/2011/11/22/what-does-developing-an-it-strategy-mean/http://escholarship.org/uc/item/74b1s5rk


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11.(6) Brisebois, R., Boyd,G., Shasid,Z.(n.d.) What is IT Governance? And why is itimportant for the IS auditor. INTOSAI, working group of IT Audit. Retrieved from

http://www.intosaiitaudit.org/intoit_articles/25_p30top35.pdf

12.(9)Mane, S. (2005) "IT Governance: The ultimate IT weapon"http://www.igatepatni.com/media/10342/tp_ITGovernance_Ultimate-IT-Weapon.pdf

ihttp://www.cs.toronto.edu/~gross/istar/didactic05-228.htm
http://www.intosaiitaudit.org/intoit_articles/25_p30top35.pdfhttp://www.intosaiitaudit.org/intoit_articles/25_p30top35.pdfhttp://www.igatepatni.com/media/10342/tp_ITGovernance_Ultimate-IT-Weapon.pdfhttp://www.cs.toronto.edu/~gross/istar/didactic05-228.htmhttp://www.cs.toronto.edu/~gross/istar/didactic05-228.htmhttp://www.cs.toronto.edu/~gross/istar/didactic05-228.htmhttp://www.cs.toronto.edu/~gross/istar/didactic05-228.htmhttp://www.igatepatni.com/media/10342/tp_ITGovernance_Ultimate-IT-Weapon.pdfhttp://www.intosaiitaudit.org/intoit_articles/25_p30top35.pdf

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BIT Alignemnt Paper