Several surveys indicate that corporate leaders still consider the aligning of IT and business functions as a top management issue. The aim of this thesis is to illustrate how coordination emerges between IT and business departments and how formal structures intended to coordinate are influenced by human action. To deepen the understanding of this phenomenon we seek to analyze IT/business coordination from a perspective based on practice theory. A field study was conducted where observations and informal interviews were carried out at the IT department of a global company. The empirical analysis indicate that coordination problems between IT and business departments is in part affected by embedded factors such as different goals and perspectives on how IT is to be used in the organization or how to design IT related processes. Our findings suggest that social interaction plays an important role for coordination. It can enhance existing formal structures or create new structures, which improve the possibilities to coordinate between IT and business departments. Our findings also show how formal structures such as cross-functional roles can constitute conditions to initiate social interaction. The results can be used as indicators for how to enhance coordination between IT and business departments.

The alignment of information systems (IS) strategies with business strategies has been a managerial priority in modern organisations. Information Technology (IT) governance is an alternative perspective that has recently been used as a management solution that can drive to desired levels of IS/business alignment. From a pragmatic perspective, both IS/business alignment and IT governance appear to be managerial solutions that corporations desire to implement in order to get the most of the business and IT relationship. Empirical research has addressed the idea that effective designs of IT governance enable IS/business alignment, however, the extent of such impact and related interactions are still unclear. This research is focused on those claims to contribute with pragmatic solutions towards IS/business alignment and IT governance by means of collective management practices. This research explored challenges, assumptions and conceptualisations around IS/business alignment and focused on the assessment process of IS-business alignment to identify management practices for both IS/business alignment and IT governance. First, a quantitative analysis from data collected of an international survey was performed. This survey was conducted to identify extreme outcomes of relevant management practices in the IS/business alignment dynamics and links with IT governance. Second, a qualitative analysis from data collected of two leading large companies, one in the manufacturing and other in the financial sector, was performed by using a three-level (strategic, tactical and operational) assessment method. This case research aimed to identify how common relevant management practices interact across strategic, tactical and operational organisational levels. Results of both analyses were integrated to elaborate the constructors of the framework derived from this research, namely ALIS-G. The results from this research can be summarised as follows: First, ALIS-G exhibits four core management practices (IT investment management, budgetary control, strategic and tactical program management, strategic and tactical understanding of IT-business) and four supportive (IT-business planning, IT projects prioritisation, sponsorship & championship and change readiness) to show collective and compelling influence over the IS-business alignment dynamics and the effectiveness of IT governance arrangements. Second, a well-established IT investment management process holds the most substantial positive impact in the IS-business alignment dynamics and design of IT governance arrangements. Finally, results highlights the fact, perhaps obvious, that the arrangement of IT governance and the dynamics of IS/business alignment are very much conditioned by the resilient assignment, allocation and administration of budgets

Title: Digital business strategy - The driver for change in internal and external business environment Authors: Sumera Magsi and Sarah Shaaban Advisor: Andrea Fried Master thesis, 30 credits Background:The effects resulting from a more intense use of digital technologies in companies is visible in the integration between business and IT strategies which creates an urge for digital business strategies to emerge. Thesis aim: The aim is to investigate the current state of digital business strategies which includes highlighting benefits and challenges. By doing that we also are aiming towards answering, in what way ITBA can be questioned due to DBS. Methodology: A qualitative research based on a multiple case study by conducting semi- structured interviews. All the selected case companies are using digital business strategies as a part of their internal and external business environment (IEBE). The respondents have a role in the chosen case companies of being responsible for the implementation and use of strategies, digital business strategies and digital technologies. Findings: This study identifies that their exits a linkage between business strategy and ITBA. The main finding about the current state of DBS involves both internal and external DBS activities. Further findings show that benefit of digital business strategy to be the opportunity to levering costumers and challenges to be connected to the different IT maturity levels of the employees. The way that digital business strategy can question ITBA is based on that it is the driver for change for the case companies.

Purpose – Motivated by the increasing role of information technology (IT) in today’s organizations, the purpose of this paper is to examine the relationships between business and IT executives in order to improve the organizational performance of the different aspects of IT technology and related systems. In the process, special attention is given to drivers which facilitate the cooperation between the parties involved. Design/methodology/approach – This survey-based research utilizes structural equation modeling methodology to uncover the relevant variables pertaining to the promotion of a positive social and strategic context needed to increase the effectiveness of organizational IT facets. Findings – The effectiveness of IT in modern organizations is contingent on a social alignment, business – IT alignment, strategic consistency, and common vision among the people who manage the IT function and those who need the organization. Research limitations/implications – This study is based on a sample of Portuguese manufacturing organizations. Therefore, findings and conclusions should be interpreted accordingly. In this context, future research in other organizational cultural settings is called for in order to refine and validate the results of this study. Practical implications – The role of establishing an organizational culture which stresses the common goal and mutual trust and cooperation in creating effective IT organizational utilization is underscored. As such, business executives are encouraged to exercise their leadership skills in order to create an organizational strategy which aligns IT capabilities and investments with the competitive strategy of the organization. In this context, creating an organizational culture which promotes business – IT alignment in a healthy social context is necessary. Originality/value – The issues and concerns addressed in this study should bridge the gap between business and IT executives. In the process, this study facilitates and encourages the effective utilization of the different facets of IT technology as they better serve the people of the organization. This advances the cost and practice of the strategic organizational role of IT investments.

För dagens verksamheter ter sig marknaden allt tuffare och för dess långsiktiga överlevnad måste dess olika delar fungera och tillsammans bilda en väl fungerande helhet. Samverkan (alignment) är en allt mer betydelsefull pusselbit i det som idag utgör en framgångsrik verksamhet. Ur ett strategiskt perspektiv är IT-styrning en stor del i denna framgång. IT-styrning är en av flera komponenter nödvändiga för att åstadkomma samverkan mellan IT och verksamhet och den har därmed en viktig roll i att få denna att fungera. Denna studie tittar närmre på den specifika roll IT-styrning har i att åstadkomma IT/Verksamhetssamverkan. Genom en kvalitativ ansats, bestående av sex djupintervjuer, har 15 framgångsfaktorer och 15 utmaningar som existerar inom IT-styrning identifierats. Hur dessa faktorer påverkar IT-styrningens förmåga att bidra till samverkan mellan IT och verksamhet kommer i denna rapport att presenteras. Med hjälp av styrmodellen PDCA kommer faktorerna på ett tydligare och mer lättöverskådligt sätt att redogöras för. Genom framtaget resultat bidrar studien med värdefull kunskap om de framgångsfaktorer och utmaningar som existerar inom IT-styrning. Denna kunskap kan av verksamheter användas för att uppnå framgångsrik IT-styrning, något som i en förlängning också bidrar till tillfredsställande IT/Verksamhetssamverkan. / Todays businesses are experiencing a tougher market and for their long-term survival the need for their various parts to work as a whole is becoming increasingly important. Alignment is an essential piece of what constitutes a successful business. From a strategic perspective IT governance play a big part in this success. IT governance is one of several components necessary to achieve what is called IT/Business alignment and has therefore an important role to play in making this alignment work. This study takes a closer look at IT governance and its contribution to IT/Business alignment. Through a qualitative approach, consisting of six in-depth interviews, 15 success factors and 15 challenges existing within IT governance have been identified. How these factors affect IT governance and its ability to contribute to the alignment between IT and business will be presented in this paper. With the aid of the PDCA management model these factors will be presented and accounted for in a clearer and more accessible way. The results produced in this study will provide valuable knowledge about existing success factors and challenges within IT governence. This knowledge can be used by businesses to achieve successful IT governance, which in an extension also contributes to satisfactory IT/Business alignment.

Nowadays more and more enterprises transform into service-oriented infrastructure to sustain their competitive advantage. Although IT is an enabler of service-orientation, IT must align with business strategies to deliver expected value. In order to ensure the investment of service-oriented IT can improve the quality of customer service effectively, we aim to develop an IT-business alignment framework to assess the quality of alignment in the context of service-oriented enterprises. In our framework we propose three components of IT-business alignment: strategic alignment, operational alignment and social alignment. The strategic alignment is the degree to which the business process and information can support corporate service strategies. The operational alignment is the degree to which information systems fulfill the information and process needs of service orientation. The social alignment is the degree to which a common service climate is shared between IT and business units. Our data is collected from web questionnaires. The total data set constitutes a representative sample of n=300. Among all returned questionnaires, 96 were found to be complete and usable; this represented a response rate of 32 percent. From this research we get four conclusions: (1) Regardless of customer integration level, strategic alignment plays a significant role in improving customer service quality. (2) Strategic alignment is particularly influential to customer service quality when the enterprise is not service-oriented. (3) Operational alignment is not significant; however with the increasing of data integration level, enterprises increasingly emphasize the operational alignment. (4) Regardless of service-orientation; social alignment effectively helps enterprises make good customer service quality and retain customers. / Nowadays more and more enterprises transform into service-oriented infrastructure to sustain their competitive advantage. Although IT is an enabler of service-orientation, IT must align with business strategies to deliver expected value. In order to ensure the investment of service-oriented IT can improve the quality of customer service effectively, we aim to develop an IT-business alignment framework to assess the quality of alignment in the context of service-oriented enterprises. In our framework we propose three components of IT-business alignment: strategic alignment, operational alignment and social alignment. The strategic alignment is the degree to which the business process and information can support corporate service strategies. The operational alignment is the degree to which information systems fulfill the information and process needs of service orientation. The social alignment is the degree to which a common service climate is shared between IT and business units. Our data is collected from web questionnaires. The total data set constitutes a representative sample of n=300. Among all returned questionnaires, 96 were found to be complete and usable; this represented a response rate of 32 percent. From this research we get four conclusions: (1) Regardless of customer integration level, strategic alignment plays a significant role in improving customer service quality. (2) Strategic alignment is particularly influential to customer service quality when the enterprise is not service-oriented. (3) Operational alignment is not significant; however with the increasing of data integration level, enterprises increasingly emphasize the operational alignment. (4) Regardless of service-orientation; social alignment effectively helps enterprises make good customer service quality and retain customers.