Business IT Alignment from Business Model to Enterprise Architecture

In this paper, we show how business model modelling can be connected to IT infrastructure, drawing parallels from enterprise architecture models such as ArchiMate. We then show how the proposed visualization based on enterprise architecture, with a strong focus on business model strategy, can help IT alignment, at both the business model and the IT infrastructure level.

Investigating the Existence of Business-IT Alignment Trap in Finnish IT Organizations

The overall purpose of this master's thesis is to investigate the existence of business-IT alignment trap in Finnish IT organizations. The alignment trap refers to the inability of IT investments to deliver the expected business benefits. The basis for this investigation is due to the previous knowledge that high level of IT alignment practice with very low efficacy in an organization can lead to alignment trap. The theory which was established on the dimensions of IT-alignment and efficacy of IT as a whole with considerations for cost reduction and revenue growth benefits. This study explored the same dimensions with the previous study but identified additional benefit (profitability). The study was conducted using the Finnish IT barometer data from different IT organizations. A quantitative research method was used in conducting this study which was built on positivist philosophical stance. The empirical data is based on survey data, an excerpt from the Finnish IT barometer data that captured the annual survey results of IT significance to Finnish organizations as evaluated by business and IT professionals. The survey data comprised of 249 respondents and their responses were categorized into high and low IT intensive which form the basis of the statistical analysis conducted. Overall, five analyses were conducted using the variables of cost reductions, revenue growth and profitability in the 2x2 matrix dimensions of IT alignment and efficacy of IT, grouped into alignment trap, maintenance zone, well-oiled IT and IT-enabled growth. The empirical results, revealed a partial existence of alignment trap in Finnish IT organizations. This is due to a very minute number of organizations that were ensnared in the alignment trap zone on the analyses conducted. Although they recorded considerable high performances in terms of revenue growth rate with IT spending below the average companies, their profitability was considered very low. Generally it was observed that Finnish IT organizations with high efficacy of IT practices had good performances, while those with low efficacy of IT experienced low performances, especially in the aspect of profitability, regardless of the degree of IT alignment. The study proposes that organizations should improve on practices that enhance effectiveness of IT more in order for them to realize the full benefits of IT and to avoid alignment trap.

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.

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.

Aligning business and IT from multi-level learning perspectives

Business and IT alignment is increasingly acknowledged as a key for organisational performance. However, alignment research lack to mechanisms that enable for on-going process with multi-level effects. Multi-level learning allows on-going effectiveness through development of the organisation and improved quality of business and IT strategies. In particular, exploration and exploitation enable effective process of alignment across dynamic multi-level of learning. Hence, this paper proposes a conceptual framework that links multi-level learning and business-IT strategy through the concept of exploration and exploitation, which considers short-term and long-term alignment together to address the challenges of strategic alignment faced in sustaining organisational performance.

Evaluating business value of IT towards optimisation of the application portfolio

Information technology has become heavily embedded in business operations. As business needs change over time, IT applications are expected to continue providing required support. Whether the existing IT applications are still fit for the business purpose they were intended or new IT applications should be introduced, is a strategic decision for business, IT and business-aligned IT. In this paper, we present a method which aims to analyse business functions and IT roles, and to evaluate business-aligned IT from both social and technical perspectives. The method introduces a set of techniques that systematically supports the evaluation of the existing IT applications in relation to their technical capabilities for maximising business value. Furthermore, we discuss the evaluation process and results which are illustrated and validated through a real-life case study of a UK borough council, and followed by discussion on implications for researchers and practitioners.

Business plan PME.Box: internationalization to Spain

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Revenue Logic inSoftware Business Context

Tutkimuksen tavoitteena oli selvittää ohjelmistotoimialan avaintekijöitä, jotka vaikuttavat yrityksen ansaintalogiikkaan sekä lisätä tietoisuutta ansaintalogiikan muodostumisesta pienissä ja keskisuurissa ohjelmistoyrityksissä. Tutkimuksen teoreettisessa osassa keskityttiin tarkastelemaan ansaintalogiikan, strategian ja liiketoimintamallin käsitteiden suhteita sekä arvioitiin toimialan osatekijöiden, hinnoitteluperiaatteiden ja ansaintamallien vaikutusta ansainnan muodostumiseen ohjelmistotoimialalla. Ohjelmistotuote ja - palveluliiketoimintaa koskien oli merkityksellistä tutkia tuotteistamisasteen ja arvoketjujen vaikutusta ansaintalogiikan muodostumisessa sekä esitellä erilaisia, tyypillisiä ohjelmistotoimialalla käytettäviä hinnoittelumenetelmiä. Työn empiirisessä osassa tarkasteltiin 23 suomalaisen ohjelmistoalan yrityksen ansaintalogiikkaa. Tiedot kerättiin haastatteluin ja analysoitiin laadullisen tutkimuksen keinoin. Tutkimustulokset korostivat ansaintalogiikan 'epämääräisyyttä' terminä mutta osoittivat, että ydinliiketoimintaan keskittyminen, tuote-, palvelu-, tai projektiliiketoiminnan osaaminen, tuotteistusaste ja kanavavalinnat ovat avaintekijöitä ansaintalogiikanmuodostumisessa. Ansaintalogiikan muodostamiseen liittyy paljon yrityksen sisäisiä ja ulkoisia haasteita sekä muutospaineita, eikä ohjelmistotoimialalla ole todennettavissa yhtä yleismaailmallista, menestyksen takaavaa ansaintalogiikkaa.

Customer reference marketing in a business to business context

This study focuses on the phenomenon of customer reference marketing in a business tobusiness (B to B) context. Although customer references are generally considered an important marketing and sales tool, the academic literature has paid surprisingly little attention to the phenomenon. The study suggests that customer references could be viewed as important marketing assets for industrial suppliers, and the ability to build, manage and leverage customer reference portfolios systematically constitutes a relevant marketing capability. The role of customer references is examined in the context of the industrial suppliers' shift towards a solution and project orientation and in the light of the on going changes in the project business. Suppliers in several industry sectors are undergoing a change from traditional equipment manufacturing towards project and solution oriented business. It is argued in this thesis that the high complexity, the project oriented nature and the intangible service elements that characterise many contemporary B to B offerings further increase the role of customer references. The study proposes three mechanisms of customer reference marketing: status transfer, validation through testimonials and the demonstration of experience and prior performance. The study was conducted in the context of Finnish B to B process technology and information technology companies. The empirical data comprises 38 interviews with managers of four case companies, 165 customer reference descriptions gathered from six case companies' Web sites, as well as company internal material. The findings from the case studies show that customer references have various external and internal functions that contribute to the growth and performance of B to B firms. Externally, customer references bring status transfer effects from reputable customers, concretise and demonstrate complex solutions, and provide indirect evidence of experience, previous performance, technological functionality and delivered customer value. They can also be leveraged internally to facilitate organisational learning and training, advance offering development, and motivate personnel. Major reference projects create new business opportunities and can be used as a vehicle for strategic change. The findings of the study shed light on the on going changing orientations in the project business environment, increase understanding of the variety of ways in which customer references can be deployed as marketing assets, and provide a framework of the relevant tasks and activities related to building, managing and leveraging a firm's customer reference portfolio. The findings contribute to the industrial marketing research, to the literature on marketing assets and capabilities and to the literature on projects and solutions. The proposed functions and mechanisms of customer reference marketing bring a more thorough and structured understanding about the essence and characteristics of the phenomenon and give a wide ranging view of the role of customer references as marketing assets for B to B firms. The study suggests several managerial implications for industrial suppliers in order to systematise customer reference marketing efforts.