IT Alignment and the Boundaries of the IT Function

Abstract

This study applies the concept of organizational boundary to examine how outsourcing and the management of external and internal boundaries of the information technology (IT) function impact IT alignment. The article argues that by decreasing the governance costs for the less strategic IT transactions, IT outsourcing enables the IT function, and IT management particularly, to focus more on aligning the IT activities and plans with business strategies and priorities, and thereby improve IT alignment. This article also suggests that organizations may improve IT alignment by effectively transmitting knowledge and supporting collaboration between IT and business functions through boundary spanning activities and with boundary objects. The concept of organizational boundaries and boundary management has not been explicitly addressed by the existing research on IT alignment. This study also contributes to the IT outsourcing literature by linking outsourcing to improved IT alignment.

Achieving Social Alignment between Business and IT – an Empirical Evaluation of the Efficacy of IT Governance Mechanisms

“…After two reminders, we received 149 completed questionnaires, of which 132 data sets remained for analysis after 17 were removed because of missing values 3 (indicating a response rate of 10.9%). Since collecting data from top managers is challenging, the sample size is reasonable and comparable to other surveys in the alignment literature (e.g., Kearns and Lederer, 2003;Bergeron et al, 2004;Valorinta, 2011).…”

How Do Project-related Artefacts Qualify for Bridging Boundaries in IS Implementation Projects _ An Activity Theoretical Perspective

“…IS research found a large array of artefacts that function as BOs, including business process diagrams [11], requirement specifications [5,22], enterprise architecture designs and models [12], information systems [11,13], and prototypes [2]. These artefacts can have different meanings within the work communities, while they are expected to provide a representational structure that is common to all these groups "so that they are recognizable to them and can serve as a means of translation" [23].…”

“…Moreover, the knowledge pools constitute the boundaries between the CoPs that need to be bridged in order to develop shared understanding about the contradictions and how the IS may resolve them (i.e., how to implement IS effectively) [9]. For this purpose, usually multiple instruments and projectrelated artefacts such as requirement elicitation methods, business process models and enterprise architecture designs are employed [5,11,12,22]. From an AT perspective, particular candidates for BOs are those project-related artefacts and concepts that are utilized in the business and IS implementation activity and thus link both activity systems to a greater or lesser extent.…”

“…2, 5, 9, 10]. As to that, a huge variety of different objects in IS initiatives including enterprise systems [11], enterprise architectures [12], requirement specifications [5,13], wireframes [14] and prototypes [2] were identified.…”

Alignment of Business and Information Strategies and Its Impact on Business Performance

“…However, they add that if alignment is so easy and trivial, it is strange that it has been CIO's top concern for such a long time and that it still attracts considerable attention from researchers. One reason for why alignment have been and still is in focus is presented by Valorinta (2011), who claims that alignment is an on-going organizational process that requires a lot from the ones involved, especially if the alignment should be successful. With this statement, Valorinta more or less adds to the understanding that alignment enhances good business performance.…”