Technological advancement is enabling businesses to stay competitive and thrive. IT is predominant in almost all modern organizations. So, IT strategy and business strategy alignment are necessary to accomplish business objectives. Otherwise, it could lead to a wastage of money and time.
Before going to know the benefits of IT strategy and business strategy alignment, let us look into some significant reasons why they usually do not align:
Shiny object syndrome:
Sometimes business leaders experience shiny object syndrome, whose quality is to focus on new. Nevertheless, drop it when another new happens. For instance, businesses might implement a cryptocurrency payment feature that is not in the users’ interest. Consequently, businesses’ investments and money go waste.
Change in leadership:
A capable leader has a substantial impact on attaining business goals and objectives. If a new leader comes in place of the old one, the decisions could vary and act in favor of the new one. Such challenges could only erase if the IT strategy and business strategy align.
Businesses cling to old technologies, not realizing they do not align with the business strategy. They do not realize how the latest technologies are more capable and reliable in fulfilling business objectives.
Lack of effective communication:
Effective decisions can only result if IT decision-makers can clearly understand business goals and objectives. Especially, they can’t design an IT strategy aligning with the business strategy. The primary reason for this could be a lack of poor communication.
Significant steps to aligning IT strategy and business strategy:
- Plan: Translate business objectives into quantifiable IT services. Therefore, the relevant resources are allocated to maximize Return on Investment. Effective communication should happen between the business and the IT leaders for this to happen.
- Model: The IT pioneers design infrastructure to enhance business value and leverage operations. They must also ensure that they execute systems significant to business services.
- Manage: Business services are the result of the organization’s objectives. The IT must act as a request point depending on the priorities defined.
- Measure: Metrics are vital for enhancing organizational services and ensuring the IT-related business goals and parameters are accomplished.
Now let us plunge to know the benefits of IT and business strategy alignment:
- Gain a competitive edge:
Technology is the most basic essential nowadays. It has the high potential to increase competitiveness on the condition that its usage is in view of the business model and plan. Organizations are relying on them for the best benefits. Nonalignment could lead to a significant waste of time.
Using IT is not just enough to gain a competitive edge. Businesses of all sizes focus their attention on data as they are significant to making informed decisions. Managers have an excellent opportunity to collect, organize and utilize information to enhance agility and effectiveness. This is possible with cloud-based technologies.
- Gain focus:
The first step is to be clear on business strategy and talk to the people within the organization regarding it. Especially this should include the IT department so that they understand business goals and objectives.
Focus is the result of choosing the right technologies aligning with business strategy. Those IT solutions help organizations make informed decisions. Though data-driven decision-making is complex, cloud-based tools make the job easy.
- Best utilize resources:
Small and medium-sized organizations execute their operations with limited resources. So, to compete with large organizations, they have to leverage the latest technologies. Effective usage of the available resources can happen with IT and business strategy alignment.
How to gain IT business alignment?
IT-business alignment is possible through regular reviews, effective communication, and the expertise to meet the requirements of any organization. To fulfill them, small and medium-sized organizations have to seek the help of IT service providers.
The IT strategy and business strategy should be side by side and must be reviewed for each quarter. This determines how technology supports growth. Though IT and business alignment take time, it is worthy to implement as it plays a significant role in enhancing productivity, gaining profits, and more.