Business IT Alignment - Revision history

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-Businesses operate by dividing essential functions into organizational units or departments such as marketing, finance, and IT. This improves operational efficiencies. However, the exact opposite happens over time because of a lack of coordination between departments. They fall out of line with each other and pursue initiatives that do not support each other's priorities or the overall goals and objectives of the business. This is akin to the four wheels of a car going in different directions. This problem is the most pronounced and evident between IT and business functions. Because IT is integral to every process in a business, this problem assumes an even greater significance. Consequently, it is crucial for a business to align with IT. This is referred to as '''"Business IT Alignment."'''
+Businesses operate by dividing essential functions into organizational units or departments such as marketing, finance, and IT. This improves operational efficiencies. However, the exact opposite happens over time because of a lack of coordination between departments. They fall out of line with each other and pursue initiatives that do not support each other's priorities or the overall goals and objectives of the business. This is akin to the four wheels of a car going in different directions. This problem is the most pronounced and evident between IT and business functions. Because IT is integral to every process in a business, this problem assumes an even greater significance. Consequently, a [[business]] must align with [[Information Technology (IT)|IT]]. This is referred to as '''"Business IT Alignment."'''
 == Definition - What is Business IT Alignment ==
-'''Business IT alignment''' refers to integrating an organization's [[Information Technology (IT)]] strategy with its overall business strategy. IT alignment aims to ensure that IT investments and initiatives support and enhance the business's goals and objectives and that IT is being used effectively and efficiently to meet the organization's needs.
+'''Business IT alignment''' refers to integrating an organization's information technology strategy with its overall business strategy. IT alignment aims to ensure that IT investments and initiatives support and enhance the business's goals and objectives and that IT is being used effectively and efficiently to meet the organization's needs.
 Business IT alignment involves a close collaboration between the business and IT departments to ensure that IT is aligned with the business goals and that the business is taking advantage of the opportunities IT can provide. This includes aligning IT investments with business priorities, ensuring IT projects are aligned with business processes and operations, and managing risks related to IT and the business.

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 == Definition - What is Business IT Alignment ==
-'''Business IT alignment''' refers to integrating an organization's Information Technology (IT) strategy with its overall business strategy. IT alignment aims to ensure that IT investments and initiatives support and enhance the business's goals and objectives and that IT is being used effectively and efficiently to meet the organization's needs.
+'''Business IT alignment''' refers to integrating an organization's [[Information Technology (IT)]] strategy with its overall business strategy. IT alignment aims to ensure that IT investments and initiatives support and enhance the business's goals and objectives and that IT is being used effectively and efficiently to meet the organization's needs.
 Business IT alignment involves a close collaboration between the business and IT departments to ensure that IT is aligned with the business goals and that the business is taking advantage of the opportunities IT can provide. This includes aligning IT investments with business priorities, ensuring IT projects are aligned with business processes and operations, and managing risks related to IT and the business.

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 #[[IT Service Management (ITSM)]]: ITSM is about delivering IT services that meet the needs of the business. Effective alignment ensures that IT services directly support business processes and objectives.
 #[[Change Management]]: As businesses evolve, so do their IT needs. Change management practices ensure that as changes occur in the business or IT landscapes, they are managed in a way that maintains alignment.
-#Value Chain: The value chain is a business model that describes the full range of activities needed to create a product or service. Understanding where IT can add value within this chain is a component of business IT alignment.
+#[[Value Chain]]: The value chain is a business model that describes the full range of activities needed to create a product or service. Understanding where IT can add value within this chain is a component of business IT alignment.

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 == See Also ==
-*[[Strategic Alignment Model]]
+#[[Strategic Alignment Model]]
-*[[Strategic Alignment Maturity Model]]
+#[[Strategic Alignment Maturity Model]]
-*[[Rockart and Scott's Alignment Model]]
+#[[Rockart and Scott's Alignment Model]]

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 The key implication of business IT alignment is that there is a hierarchical relationship in the enterprise - business functions are superior to the IT function, which is subordinate to them. "IT exists to support the business" is a euphemism that clearly establishes this hierarchy, and all that it implies, without spelling it out explicitly.
 *Primacy of Business: The underlying premise is that value is created by business functions in the enterprise. IT Function, in and of itself, does not create value but supports the business functions in their value-creating initiatives. In other words, IT is a support function that exists to enable the business functions in the organization. Consequently, everything IT does must align with the initiatives of one or more business functions.
-*Business Drives IT: Businesses create a strategy whose requirements set the agenda for IT actions. Business strategy drives IT strategy planning. This model provides for adjustments based upon IT limitations such as lack of [[IT Capability]] and/or delay in IT project implementation. Business strategy is adjusted to account for IT to the extent of these limitations. However, IT capability does not drive business strategy. The sequential origin of the IT function has a lot to do with this mindset - IT came after business, so IT must follow the business!
+*Business Drives IT: Businesses create a strategy whose requirements set the agenda for IT actions. Business strategy drives [[IT Strategic Planning]]. This model provides for adjustments based upon IT limitations such as lack of [[IT Capability]] and/or delay in IT project implementation. Business strategy is adjusted to account for IT to the extent of these limitations. However, IT capability does not drive business strategy. The sequential origin of the IT function has a lot to do with this mindset - IT came after business, so IT must follow the business!
 **IT function supports the business functions
 **IT function must cooperate with the business functions

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 == Definition - What is Business IT Alignment ==
-'''Business-IT Alignment''' is a discipline that matches [[IT Strategy (Information Technology Strategy)|IT Strategy]] with [[Business Strategy|business strategy]] with the goal of maximizing value created by the enterprise:
+'''Business IT alignment''' refers to integrating an organization's Information Technology (IT) strategy with its overall business strategy. IT alignment aims to ensure that IT investments and initiatives support and enhance the business's goals and objectives and that IT is being used effectively and efficiently to meet the organization's needs.
 *Business-IT Alignment is a process, not a point-in-time event
 *Business-IT Alignment gap is the degree to which IT initiatives deviate from business requirements
-*The aim of Business-IT Alignment is to reduce this gap, and eliminate it over time. Business-IT Alignment is achieved when this gap is completely eliminated
+*Business-IT Alignment aims to reduce this gap and eliminate it over time. Business-IT Alignment is achieved when this gap is eliminated
-*Business-IT Alignment happens in stages, or phases with each increment resulting in higher value generated by the company
+*Business-IT Alignment happens in stages or phases, with each increment resulting in higher value generated by the company
-*An enterprise that achieves Business IT Alignment is generating the [[IT ROI|maximum value from its IT investments]] aka “getting the biggest bang for the IT buck”
+*An enterprise that achieves Business IT Alignment is generating the [[IT ROI|maximum value from its IT investments]] aka “getting the biggest bang for the IT buck.”
-An enterprise has achieved Business-IT Alignment when all its IT initiatives are completely in line with the requirements set by its [[Business Function|business functions]]. Business-IT Alignment results in every penny spent on IT is in support of a business objective. Even though common literature implies that Business-IT Alignment concerns itself with strategy, the following is a more accurate definition of the term:
+An enterprise has achieved Business-IT Alignment when all its IT initiatives align with the requirements set by its [[Business Function|business functions]]. Business-IT Alignment results in every penny spent on IT is in support of a business objective. Even though common literature implies that Business-IT Alignment concerns itself with strategy, the following is a more accurate definition of the term:
 Business-IT Alignment matches [[IT Vision]], mission, goals, objectives, and capability (strategy, process, organization, and infrastructure) with business vision, mission, goals, objectives, and capability (strategy, process, organization, and infrastructure).