Information Technology (IT) systems are pervasive tools for contemporary enterprises to achieve their mission and goals. A key issue for a well-functioning enterprise is to keep business and IT strategies aligned as they continuously evolve. Although many practitioners and researchers offer business and IT alignment theories and approaches there is no silver bullet solution for all the issues involved in Strategic Business and IT Alignment (SBITA), which is still ranked amongst the five top enterprise executives? concerns year after year. In this thesis two SBITA assessment methods are presented. The first is the Organization-wide Approach for Assessing SBITA, developed as an enhancement of Jerry N. Luftman's SBITA assessment approach in terms of measurability, traceability and organizational involvement. The second is the Alignment Metamodel Assessment Method (AMAM). Both methods are based on well established references and approaches and they are presented with systematic documentation for their application and reusability as shown in the included papers and reported case studies. This is a composite thesis that, besides the introduction, includes five papers (papers A-E). Paper A describes Luftman's SBITA assessment approach and its enhancement in terms of measurability, traceability and organizational involvement, the proposed Organization-wide Approach for Assessing SBITA. Results from applying this approach in two case studies in companies in Sweden and Nicaragua are also included. Paper B describes the AMAM. It explains how a metamodel is deduced and how the SBITA assessment will be performed. This paper argues that the AMAM can be affiliated to the EA discipline as a guide or reference for identifying the relevant EA?s representations for the SBITA concern, mitigating the expenses and drawbacks of the often larger modeling required in applying EA frameworks. Paper C shows a weighting of the importance of the SBITA topics, taking as reference the Henderson & Venkatraman Strategic Alignment Model (SAM) - the basis of Luftman?s SBITA assessment approach -by relating it to the relevant and highly cited references in the field of SBITA. Paper D explains the criteria and the process for associating the AMAM artifacts with the Zachman´s Enterprise Architecture Framework and reports the pattern of association into the EA dominion. Paper E reports the details of the processes and results of applying the developed AMAM in a case study conducted in an intensive IT services enterprise in Nicaragua. / QC 20100805

Organizations that have come to depend on legacy systems face quite a paradoxical problem. Maintaining the system might prove ineffective in accommodating necessary changes, but a system migration project is expensive and incurs a high amount of risk. Organizations are therefore hesitant to respond to the legacy system problem by undertaking action. Legacy system are often not causing their organization any problems at present, but a focus on the future with regard to the legacy system problem is lacking. This results in IT systems reaching an end-of-life state. The research therefore set out to explore a future-oriented perspective on legacy systems by means of observation, a literature review and a survey. The researcher found the key concept of a future-oriented perspective to be that any system that is limiting an organization to grow and innovate can be regarded as a legacy system. A framework to designate legacy status to IT systems is proposed in order to guide practitioners to acknowledge a problematic IT system to facilitate appropriate response at the right time. In relation to a future-oriented perspective, when to designate legacy status is best determined according to the system’s flexibility towards change and the alignment of the system with the business. In that regard, IT systems are end-of-life systems when they are too inflexible to change, and as a result become unaligned with either current operations or a future business opportunity or need.

The alignment of business and information technology (IT) strategy is an important and enduring theoretical challenge for the information systems discipline and has remained a top issue in practice for the past twenty years. The extant literature makes two implicit assumptions. One is that IT strategy is aligned with a single business strategy, either at the corporate level or within a single strategic business unit (SBU). The other is that strategies are developed at a single point in time. Therefore, multi-business organisations present a particular alignment challenge, because business strategies are developed at both the corporate level and SBU levels, and these strategies are developed over time. This dissertation contributes a dynamic, capabilities-based theory of business and IT strategy alignment. Rather than extending existing models, this study draws on theory from the resource-based view of the firm and path dependence to address business and IT alignment within and between corporate and SBU levels across the strategy cycle. A new dynamic alignment model conceptualises IT alignment as the fit between business and IT strategies within the corporate and SBU levels and the coherence between these two levels. Value is created by complementary relationships among business and IT capabilities. IT alignment (or misalignment) is embedded over the strategy cycle, with the degrees of freedom declining quickly over time. The new model is validated using pattern matching with a single critical case of strategy development in a multi-business organisation across a complete strategy cycle. The strong match between the empirically observed and theoretically predicted patterns, and the complex nature of these patterns, provides strong support for the model. The model reconceptualises the way IT alignment drives organisational performance and how IT alignment changes over time. This has implications for existing IT alignment models, providing alternative theoretical explanations of how IT alignment creates value and how IT alignment changes over time. The new model also has implications for practice across the IT investment value chain and its governance.

In order to solve a problem of Business and IT Alignment (BITA) it is important to consider various dimensions of it: strategic, structural, social and cultural. In the context of dealing with BITA, Enterprise Modeling (EM) is an acknowledged and widely used practice. On one hand, EM facilitates the creation of integrated models that capture and represent different focal areas of an enterprise, there-fore it allowing to obtain a multidimensional view on an enterprise and to inte-grate these multiple dimensions into a coherent structure. These capabilities make EM a powerful tool for dealing with the strategic and structural dimen-sions of BITA. On the other hand, solving a BITA problem requires dealing with the numerous points of view of the stakeholders and creating a shared under-standing between them, which refers to the social and cultural dimensions of BITA. In this regard EM is also able to provide support to the development of an understanding about the current multidimensional praxis and future vision and strategies. Thus, EM has a high potential for dealing with the strategic, structur-al, social and cultural dimensions of BITA. This licentiate thesis investigates the applicability of EM in the light of BITA and proposes a framework that allocates intentions of EM application within the frame of the Strategic Alignment Model. The framework positions EM conceptually in the context of BITA and identifies a number of EM challenges and recommendations to suggest how EM can be used to facilitate BITA.

In order to solve a problem of Business and IT Alignment (BITA) it is important to consider various dimensions of it: strategic, structural, social and cultural. In the context of dealing with BITA, Enterprise Modeling (EM) is an acknowledged and widely used practice. On one hand, EM facilitates the creation of integrated models that capture and represent different focal areas of an enterprise, there-fore it allowing to obtain a multidimensional view on an enterprise and to inte-grate these multiple dimensions into a coherent structure. These capabilities make EM a powerful tool for dealing with the strategic and structural dimen-sions of BITA. On the other hand, solving a BITA problem requires dealing with the numerous points of view of the stakeholders and creating a shared under-standing between them, which refers to the social and cultural dimensions of BITA. In this regard EM is also able to provide support to the development of an understanding about the current multidimensional praxis and future vision and strategies. Thus, EM has a high potential for dealing with the strategic, structur-al, social and cultural dimensions of BITA. This licentiate thesis investigates the applicability of EM in the light of BITA and proposes a framework that allocates intentions of EM application within the frame of the Strategic Alignment Model. The framework positions EM conceptually in the context of BITA and identifies a number of EM challenges and recommendations to suggest how EM can be used to facilitate BITA.

Strategic business and IT alignment assessment is growing in importance. Different assessment methods have been used to try to pursue the complexity of this dynamic and evolutionary alignment. Despite the fact that alignment is a real problem and a challenge of utmost importance, no consensus can be found on what alignment really is, how it should be measured in the organization in practice, or what measures should be taken to maintain and improve it. Consequently, the key question about how to assess and accomplish (define, identify, measure, maintain and improve) the strategic business and IT alignment is still a great unanswered challenge for many enterprises. In this thesis work, three main research questions were formulated: how can the validity and reliability of an alignment assessment method be improved, what are the dominant topics in the area of alignment, and how to facilitate the analysis of the business and IT governance alignment based on business process simulation and balanced scorecard methods. This is a composite thesis work that includes an introduction and six papers (paper A-F). The main contributions and results of this thesis are described in published and included technical papers. In papers A and B an alternative organization-wide approach and metamodel for assessing strategic business and IT alignment are proposed. Two case studies were performed applying the proposed approach. In paper C, a prioritized diagram of the most widely accepted strategic alignment model, with the purpose of categorizing the most important topics in the research area of strategic business and IT alignment is presented. One of the relevant topics that were identified is governance. In papers D, E and F, there are presented a business process simulation approach and a balanced scorecard method in order to facilitate the assessment of the business and IT governance alignment. An illustrative example of the simulation approach is presented in an appendix of this thesis. This research work aims to improve the decision-making process for business and IT managers at different levels in an enterprise by means of increasing the level of understanding and knowledge as well as by enhancing existing models and methods, for evaluating strategic business and IT alignment. / <p>QC 20101110</p>