Scribd
Upload
446 views

Cgeit Notes

The document discusses various aspects of aligning IT strategy with business strategy. It states that alignment should be measured using tools like the Balance Scorecard and will be assessed by the board or executive management. It also notes that monitoring the benefits delivered by IT is important to determine if alignment exists. Budget allocation and portfolio/program management can help ensure alignment. The roles of the CIO and business strategy committee in formulating strategies are discussed. Enterprise architecture is described as having different layers linking business goals to infrastructure. An alignment committee with both business and IT representation is ideally suited to direct alignment.

Uploaded by

Kaye Akin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
446 views

Cgeit Notes

The document discusses various aspects of aligning IT strategy with business strategy. It states that alignment should be measured using tools like the Balance Scorecard and will be assessed by the board or executive management. It also notes that monitoring the benefits delivered by IT is important to determine if alignment exists. Budget allocation and portfolio/program management can help ensure alignment. The roles of the CIO and business strategy committee in formulating strategies are discussed. Enterprise architecture is described as having different layers linking business goals to infrastructure. An alignment committee with both business and IT representation is ideally suited to direct alignment.

Uploaded by

Kaye Akin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
You are on page 1/ 2

The best alignment of IT and business strategy would be reflected by value added by IT to the business.

It will be measured by Balance Score Card or any other m easurement technique adopted by the enterprise. The best person(s) would be Boar d or Executive management. There are following reasons why they are in the best position (a) They are accoun table for the alignment and hence the would assess the alignment (b) They are in dependent in the sense not involved in bring about (or implementing the alignmen t) and hence would be objective in their assessment, (c) They are most concerned with the alignment. (Refer page 69 of the study manual to get better understanding of Board s responsi bility with respect to alignment.) SA 2 Monitoring the benefits delivered by IT is important for taking a call on whethe r IT is aligned with business. When results given by IT supports the business go als and objectives, it can be concluded that IT is aligned with business. On the other hand, when IT fails to articulate the value it adds to the business goals and objectives, there is a high possibility that there is a misalignment. SA3 Alignment of IT to business would be linked to budget and resource allocation th rough portfolio and program management. Portfolio management would ensure that t here is a right mix of programs in a portfolio and ultimately each class of port folio delivers to the desired business benefit. Program management will ensure t hat links within each projects within a program in such a way the business benef it targets set within a portfolio is achieved. The budget allocation will be done on different portfolios in alignment with the ir ability to support IT objectives and thus business objectives. SA4 Formulation of business and IT strategy is a two way street. As the IT captures what support it needs to provide to business for the achievement of business obj ectives, the business also should capture what IT capabilities can be harvested to further business capabilities. CIO is the link between business and IT. CIO should be part of business strategy committee or any structure which is responsible for formulating the business st rategy. CIO should use that platform to communicate any IT initiative which can be used for business enablement. SA5 EA can be viewed as comprising of number of layers. At the bottom of the layer i s IT infrastructure architecture and at the top of the layer (or pyramid) is the business architecture. The in between layters are information architecture, inf ormation system architecture and data architecture. Each layer is interlinked wi th the previous layer and it supports the previous layer. EA is used a tool to build and communicate the relationship of macro technology issue with business goal. SA8 Ideally a committee should be directing the alignment with representation from b

oth business and IT. If CEO is made responsible for ensuring the alignment, he/ she would view IT as enabling or supportive function and he may miss the opportu nity of purely IT enabled opportunity. Whereas CIO would not have the business p erspective to identify what is important or what is not from the business goal a chievement point of view. It will also dependent upon the kind of industry in which in enterprise is. If t he enterprise is in an conservative and typically low growth industry where IT i s mainly responsible automating the transactions and driving cost effectiveness, CEO would be the best person to drive the alignment.

You might also like