Business/IT Alignment - B/I Alignment and Business Transformation

B/I Alignment and Business Transformation

Ultimately, value must come not just from the IT tools that are selected, but also in the way that they are used in the organization. For this reason, the scope of B/I Alignment also includes business transformation, in which organizations redesign how work is accomplished in order to realize efficiencies made possible by new IT. Thus, implementing IT to achieve its full potential for business value includes not only a technical component, but also an organizational change management component (see the Risk3 model below).

It is important to consider the overall value chain in technology development projects as the challenge for the value creation is increasing with the growing competitiveness between organizations that has become evident (Bird, 2010). The concept of value creation through technology is heavily dependent upon the alignment of technology and business strategies. While the value creation for an organization is a network of relationships between internal and external environments, technology plays an important role in improving the overall value chain of an organization. However, this increase requires business and technology management to work as a creative, synergistic, and collaborative team instead of a purely mechanistic span of control. Technology can help the organization recognize improved competitive advantage within the industry it resides and generate superior performance at a greater value, according to Bird .