The Business-IT Alignment could be defined as state of dynamics where the organization of business would be making use of the resources of Information Technology (IT) for their purpose of achieving the objective set within the business. The alignment of IT within business is a very important aspect as it would be able to improve the competitiveness within the market and thus would be able to gain positive financial performances (De Haes and Van Grembergen 2015).
Concept of Business and IT Alignment
The concept of business-IT alignment could be defined as the form of correspondence between the objectives of the business and the requirements within the field of IT. The alignment of business organizations and information technology would mostly involve the optimizing based communication methods among the executives of the business and the managers within the IT organizations who would be mostly responsible for looking into the technical operations within the organizational processes (Zarvi? and Wieringa 2014). There is a major need to implement flexible plans within the business and architectures of IT and allocation of effective cost management, which would be considered as vital components within the alignment of business process with IT (Wu, Straub and Liang 2015). The managers who are involved within the technical department are able to frame and thus submit various kinds of proposals, which could be tailored for the purpose of ensuring the method of return on investment (ROI). The executives of businesses are able to attend the various meetings within the IT department that would have a major motive for improving the understanding the capabilities of the company based on the technical part and thus be able to understand and measure the limitations of the businesses.
Consequences of not considering Business-IT Alignment
There are some business organizations who are not able to implement the processes of IT within their business processes. This is due to the costs of implementation, fear of adoption to newer technologies and many others. However there are certain serious consequences of not aligning the IT processes within businesses (Graham and Kaye 2015). Some of the serious aftermaths of not considering business-IT alignment are:
- Loss of Data during Disasters – This is one of the vast form of effects, which could be faced by a company during the times of natural disasters. There have been several examples of business organization getting burned due to fire accidents, earthquakes and many others. In such cases, the business organizations would tend to lose their important files and thus might face serious forms of implications, which might affect the business (Wirtz et al. 2014).
- Communication Gaps – Several processes of business includes the stages of iteration, decision, research, conception and execution that would be followed by a review. Without a proper form of implementation of IT processes, it would be highly difficult to maintain each processes within the business organization.
- Increasing Competition – In the recent times, competition within the market is extremely high and thus without a proper form of business-IT alignment it might happen that the business would be left behind in the long run. They would not be able to gain a position within the competitive market.
- Complying with Legal Requirements – The management of paper-based archives without a proper scanning of the documents is tougher than managing documents with the help of IT systems. There are certain laws such as HIPAA and Sarbanes-Oxley Act (SOX) that would require higher form of maintenance of the records so that they would be accessible and secured. Hence, the implementation of IT within these business organizations would be highly crucial (Zhang, Zhu and Ding 2013).
- Loss of Brand Reputation – Humans are prone to make errors. These errors might be detrimental for the reputation of the image of a certain business brand. They can also jeopardize the position of the company within the market in the future and thus affect the other forms of business processes.
From the discussion, it could be concluded that the implementation of IT processes within every business organization would be a major step for the successful planning of the business process and it could be helpful in saving the businesses from several risk scenarios. Within the implementation of business-IT alignment, there would also be a smoother business environment and higher form of efficiencies within work culture. Business-IT alignment would also prove to be a tremendous growth for the transformation of business processes and thus would be able to maintain a reputation within the market
De Haes, S. and Van Grembergen, W., 2015. Business/IT Alignment. In Enterprise Governance of Information Technology (pp. 45-70). Springer, Cham.
Graham, J. and Kaye, D., 2015. A Risk Management Approach to Business Continuity: Aligning Business Continuity and Corporate Governance. Rothstein Publishing.
Wirtz, A., Kron, W., Löw, P. and Steuer, M., 2014. The need for data: natural disasters and the challenges of database management. Natural Hazards, 70(1), pp.135-157.
Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and IT managers. Mis Quarterly, 39(2), pp.497-518.
Zarvi?, N. and Wieringa, R., 2014. An integrated enterprise architecture framework for business-IT alignment. Designing Enterprise Architecture Frameworks: Integrating Business Processes with IT Infrastructure, 63, p.9.
Zhang, J.Q., Zhu, H. and Ding, H.B., 2013. Board composition and corporate social responsibility: An empirical investigation in the post Sarbanes-Oxley era. Journal of Business Ethics, 114(3), pp.381-392.