STRATEGIC ALIGNMENT MATURITY. SIM FAIRFIELD-WESTCHESTER. DR. JERRY LUFTMAN STEVENS INSTITUTE OF TECHNOLOGY JLUFTMAN@STEVENS-TECH.EDU 2/20/03. AGENDA. WHAT IS STRATEGIC ALIGNMENT? 2. WHY IS IT TAKING SO LONG TO ADDRESS? HOW MATURE IS YOUR IT-BUSINESS ALIGNMENT?.
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DR. JERRY LUFTMAN
STEVENS INSTITUTE OF TECHNOLOGY
WHAT IS STRATEGIC ALIGNMENT?
2. WHY IS IT TAKING SO LONG TO ADDRESS?
HOW MATURE IS YOUR IT-BUSINESS ALIGNMENT?
168 Better links to customers and suppliers
163 Enhancing corporate-wide processes
151 Aligning IT and business goals
126 Lowering costs of technology
72 Increasing user competence
70 Enabling/enhancing e-business and e-commerce
61 Data security / privacy
56 Implementing new technologies (e.g., wireless)
* CEO Responses
TOP 3 ARE IT BUSINESS ALIGNMENT ISSUES
Ref : Conference Board
Organization Concerns Rankings
Ref: Robert Gray, Anil Gulati - Western New England College
Average weighted score (10 = max)
Top 10 IS Management Priorities, 2002
Delivering value, cut costs
Fix security and business continuity
Strategizing for IS/business linkage
Providing leadership and guidance for the board/executive
Demonstrating business value of IS
Developing leadership and behavioral competencies in the IS senior mgmt. team
Reducing total IT costs
Strengthening program/project prioritization and management
Tightening security and privacy safeguards
Developing e-enabling IT architectures
Attracting, nurturing and sustaining IS resources
Reducing IT complexity
IT is an equal agenda item in your company’s strategy and planning sessions
Ref : CIO and Boston-based consultancy ICEX
Corporate executives were asked:
Which subjects are included in your formal business strategy?
SOURCE: CUTTER CONSORTIUM, ARLINGTON, MASS.
What is the role of IT at your company ?
Manager of key data, communications, hardware, and software
Vital utility, like electricity
Tool for improving business-process efficiency
Resource for creating new business processes
Instrument for cutting costs within the company
Core part of decision-making team that sets overall strategy
Responsible primarily for technology maintenance
Cost Center and drain on corporate resources
Note: Multiple responses allowed
% of respondents
Ref: Optimize Research
WHAT IS STRATEGIC ALIGNMENT???
Where is the Value From IT Investments?
Every business is an information business.
Information is the glue that holds value chains & organizations together.
A New Perspective
Investments in Business Change!!!
Value Management Framework
The Strategic Alignment Model
LONG LIST ABOUT SYMPTOMS OF ALIGNMENT PROBLEMS
WHY IS IT TAKING SO LONG TO ADDRESS???
There is no “silver bullet”…
It takes a combination of “things” to make it a success!!!
Leverage Core CSFs
& Learning Hierarchy
CRM, SCM, & K
via Semantic Web
HOW MATURE IS YOUR
Climbing the Strategic Alignment Maturity Model
LEVEL 3 Established process
LEVEL 2 Committed Process
LEVEL 1 Initial Process
IT BUSINESS ALIGNMENT MATURITY CRITERIA
- Functional Organization
IT IS NOT JUST THE LEVEL OF