Business-IT Alignment in PSS Value Networks: A Capability-Based Framework

Part 8: Business Strategies Alignment

Achieving business and IT alignment from organisational learning perspectives

Business and IT alignment has continued as a top concern for business and IT executives for almost three decades. Many researchers have conducted empirical studies on the relationship between business-IT alignment and performance. Yet, these approaches, lacking a social perspective, have had little impact on sustaining performance and competitive advantage. In addition to the limited alignment literature that explores organisational learning that is represented in shared understanding, communication, cognitive maps and experiences. Hence, this paper proposes an integrated process that enables social and intellectual dimensions through the concept of organisational learning. In particular, the feedback and feed- forward process which provide a value creation across dynamic multilevel of learning. This mechanism enables on-going effectiveness through development of individuals, groups and organisations, which improves the quality of business and IT strategies and drives to performance.

Exploring business and IT alignment mechanisms: toward a learning perspective

Numerous studies have attempted to develop strategic alignment mechanisms. The strategic alignment mechanism is broken down into two categories namely: strategy process and strategy content. Our review shows that alignment research has been carried out in isolation. We see this as having had the effect of limiting the extent to which executives can understand elements of performance. We confer with a number of researchers in postulating that using a mechanism such as multilevel learning to combine strategy content and strategy process under one metaphor can greatly facilitate, through exploration and exploitation, the understanding not only of human interactions within a firm, but also of the interaction existent between a firm and its environment. The findings in this study further support the idea of integrating strategy process and content to have a better understating of alignment maturity and impact on business performance. It also elaborates the affect of misalignment in companies on performance.

The agile governance of business IT projects

Organisations typically define and execute their selected strategy by developing and managing a portfolio of projects. The governance of this portfolio has proved to be a major challenge, particularly for large organisations. Executives and managers face even greater pressures when the nature of the strategic landscape is uncertain. This paper explores approaches for dealing with different levels of certainty in business IT projects and provides a contingent governance framework. Historically business IT projects have relied on a structured sequential approach, also referred to as a waterfall method. There is a distinction between the development stages of a solution and the management stages of a project that delivers the solution although these are often integrated in a business IT systems project. Prior research has demonstrated that the level of certainty varies between development projects. There can be uncertainty on what needs to be developed and also on how this solution should be developed. The move to agile development and management reflects a greater level of uncertainty often on both dimensions and this has led the adoption of more iterative approaches. What has been less well researched is the impact of uncertainty on the governance of the change portfolio and the corresponding implications for business executives. This paper poses this research question and proposes a govemance framework to address these aspects. The governance framework has been reviewed in the context of a major anonymous organisation, FinOrg. Findings are reported in this paper with a focus on the need to apply different approaches. In particular, the governance of uncertain business change is contrasted with the management approach for defined IT projects. Practical outputs from the paper include a consideration of some innovative approaches that can be used by executives. It also investigates the role of the business change portfolio group in evaluating and executing the appropriate level of governance. These results lead to recommendations for executives and also proposed further research.

Service analysis : A critical assessment of the state of the art

The service-orientation paradigm has not only become prevalent in the software systems domain in recent years, but is also increasingly applied on the business level to restructure organisational capabilities. In this paper, we present the results of an extensive literature review of 30 approaches related to service identification and analysis for both domains. Based on the consolidation of a superset of comparison criteria for service-oriented methodologies found in related literature, we compare and evaluate the different characteristics of service engineering methods with a focus on service analysis. Although a close business and IT alignment is regarded as one of the core beneficial promises of service-orientation, our analysis suggests that there is a lack of unified, comprehensive methodology for service identification and analysis integrating and addressing both domains. Thus, we discuss how our results can inform directions for future research in this area.

Towards a service portfolio management framework

Services in the form of business services or IT-enabled (Web) Services have become a corporate asset of high interest in striving towards the agile organisation. However, while the design and management of a single service is widely studied and well understood, little is known about how a set of services can be managed. This gap motivated this paper, in which we explore the concept of Service Portfolio Management. In particular, we propose a Service Portfolio Management Framework that explicates service portfolio goals, tasks, governance issues, methods and enablers. The Service Portfolio Management Framework is based upon a thorough analysis and consolidation of existing, well-established portfolio management approaches. From an academic point of view, the Service Portfolio Management Framework can be positioned as an extension of portfolio management conceptualisations in the area of service management. Based on the framework, possible directions for future research are provided. From a practical point of view, the Service Portfolio Management Framework provides an organisation with a novel approach to managing its emerging service portfolios.

Strategy content analysis for service identification : a case study on government agencies

In a resource constrained business world, strategic choices must be made on process improvement and service delivery. There are calls for more agile forms of enterprises and much effort is being directed at moving organizations from a complex landscape of disparate application systems to that of an integrated and flexible enterprise accessing complex systems landscapes through service oriented architecture (SOA). This paper describes the analysis of strategies to detect supporting business services. These services can then be delivered in a variety of ways: web-services, new application services or outsourced services. The focus of this paper is on strategy analysis to identify those strategies that are common to lines of business and thus can be supported through shared services. A case study of a state government is used to show the analytical method and the detection of shared strategies.

A comparative analysis of the integration of SOA elements in widely-used enterprise architecture frameworks

In recent years, enterprise architecture (EA) has captured increasing interest as a means to systematically consolidate and manage various enterprise artefacts in order to provide holistic decision support for business/IT alignment and business/IT landscapes management. To provide a holistic perspective on the enterprise over time, EA frameworks need to co-evolve with the changes in the enterprise and its IT over time. In this paper we focus on the emergence of Service-Oriented Architecture (SOA). There is a need to integrate SOA with EA to keep EA relevant and to use EA products to help drive successful SOA. This paper investigates and compares the integration of SOA elements in five widely used EA frameworks: Archimate, The Open Group Architecture Framework (TOGAF), Federal Enterprise Architecture Framework (FEAF), Department of Defence Architecture Framework (DoDAF) and the Ministry of Defence Architecture Framework (MODAF). It identifies what SOA elements are considered and their relative position in the overall structure. The results show that services and related elements are far from being well-integrated constructs in current EA frameworks and that the different EA frameworks integrated SOA elements in substantially different ways. Our results can support the academic EA and SOA communities with a closer and more consistent integration of EA and SOA and support practitioners in identifying an EA framework that provides the SOA support that matches their requirements.