Business-IT Strategic Alignment Concept in Theory and Practice

Abstract

Business-IT strategic alignment is one of the most popular modern management concepts\nin business and IT management particularly in academia and industry. It refers to\nthe degree of congruence between business and IT strategies. The dramatic increase in\nthe role of IS/IT in business and industry lately recognized as IS/IT became an inseparable\npart of business and industrial organizations in all sectors including government,\nhealthcare, and education. Ensuring that IS/IT delivers a value to the business is an important\nissue to the CEO and IT managers in many business firms and industrial organizations\ntoday.\nThis master thesis provides insights into business-IT Strategic alignment concept in theory\nand practice, and it addresses two important issues within business-IT strategic\nalignment. The first is to define and clarify the concepts of strategic alignment and\nalignment gap between business strategy and IT strategy, and to determine the reasons\nand circumstances that lead to the alignment gap between business strategy and IT strategy.\nThe second is to determine how to manage the strategic alignment based on the answer\nto the first question and supported by illustrative cases studies in four different\nbusiness and industrial sectors. A conceptual model has been developed wherein business\nstrategy and IT strategy coexist, and tested empirically using data from four firms\nin different sectors in industry. The empirical data about the four companies are presented\nand analyzed. Based on literature, the concepts of strategic alignment and alignment\ngap have been clearly identified, and the research model has been verified. The\nresults indicate that bridging the alignment gap between business strategy and IT strategy\nwill help organizations to achieve and sustain strategic alignment.

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