Information Technology Reference
In-Depth Information
dependence on information tools is too big and
governance issues cannot be solved without the
intensive use of information technology.
and Abreu (2002) IT and business integration is
a constant problem in organizations, generating
large financial and human effort that cannot guar-
antee a return on available investments.
Plazaola (2006) also says that many companies
are not careful with strategic planning, which
should be the basis for IT and business alignment.
Organizations that have already aligned IT and
business are constantly buoyed by organizational
effectiveness, which is not perceived in isolated
areas only, but also across the entire Organization
(Lankhorst et al, 2005).
The literature suggests that companies cannot
be competitive or successful if their business and
IT strategies are not aligned. Nowadays, the most
accepted conceptual model for IT and business
alignment is the model proposed by Henderson
and Venkatraman, called the Strategic Alignment
Model (SAM) (Plazaola, 2006).
SAM segments the organization into business
and IT. In both business and IT segments, the
strategy of each part should be aligned with its
operational capacities. The alignment between
these segments should happen both in terms of
strategy and capabilities. Following this line of
thought, business and IT are divided into two other
segments: business strategy and organizational
infrastructure (for business); and IT strategy and
infrastructure (for IT).
SAM is conceived of in terms of two funda-
mental strategic management features: i) strategic
suitability and the interrelation between external
and internal domains; (ii) functional integration
(between the areas of business and IT). SAM's
proposal in operationalization suggests that all
organizations which start with business strategy
verification must contribute to formulating IT
strategy and thus be in the IT infrastructure's
constitution.
Schekkerman (2006) uses the SAM as a tool
for holistic understanding of the Organization and
through it defines the organizational architecture
principles, which are “a complete expression
of the enterprise; a master plan which 'acts as
it governance
Due to regulatory pressure from national and
international markets, which generated a strong
influence on the establishment of best practices
for IT Governance, IT has ceased to be one of the
areas least required in regulatory terms (Pelanda,
2006).
Fernandes and Abreu (2008) also emphasize
that business dependence in relation to IT and
regulatory agencies became important growth
drivers of IT Governance in organizations.
According to Weil and Ross (2004), IT Gover-
nance seeks to meet practices defined by Corporate
Governance and aims to answer the following
questions: (i) Do IT capabilities improve a com-
pany's competitiveness? ii) Will the company's
managers recognize their responsibilities for the
effective management and use of IT - or will they
assume that this is a problem only in the IT area?
iii) Will IT investments meet their company's
strategic objectives - or will the company only
be wasting resources and investments to meet
operational needs and tactical initiatives?
According to the Ministry of International
Trade and Industry (1999), IT Governance is the
Organization's ability to control the formulation
and implementation of strategy and to guide IT in
a direction that is conducive to achieving competi-
tive advantages for the Corporation.
As Grembergen (2004) states, IT governance
is the organizational capacity exerted by senior
management, executive management and IT to
control the formulation and implementation of IT
strategy in order to align IT with the organization.
business and it Alignment
In general, the main concern of IT Governance
is business IT alignment. According to Rezende
Search WWH ::
Custom Search