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Business-IT Alignment


24 Minute CIO

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Unit Video

Unit Summary

Two activities that form the foundation of business to IT alignment:
  • Business strategy and priorities need to drive the IT investment priority purchases.
  • IT Capabilities must enable innovative business practices

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Hi, in this video we’ll explore what are the two activities that would support business to IT alignment in organizations.
As more and more organizations use IT as competitive advantage, they need to have a very high coordination between business and IT leaders.
Here two activities that form the foundation of business to IT alignment:
  • Business strategy and priorities need to drive the IT investment priority purchases.
  • IT Capabilities must enable innovative business practices
By following the simple sequence there will be more alignment between business and IT and thus more relation coming out of this coordination.
Regular meetings should be held between the two departments to ensure agreed plan, stay on track, and deliver on the anticipated business performance metrics.

The IT Manager of a large bank has been tasked with streamlining and reducing the cost of the ICT operations. In doing the initial analysis, he identifies that by introducing a more integrated ERP, CRM and Financial System, there could be a lot of savings and much less operational staff needed to manage the different systems that exist today. Before starting with the project though, the IT manager calls in the heads of business operations, sales and marketing and finance to discuss with their own business needs and if they can dedicate staff to help in the business scoping. Operations and Finance business units show their interest to start with the same project immediately due to their own needs to reduce costs. The sales and marketing team however has several marketing campaigns underway and as such can't change the system in the coming months. By working with the business users that are most ready to change and engaging them in the process, the IT manager is able to get the support and ensure that his priorities are as closely aligned to business needs.

Technology provides no benefits of its own; it is the application of technology to business opportunities that produces ROI. Robert McDowell