How to Achieve Sustainable Business IT Alignment -- Designing a Circular Organizational Structure at SAAB

Abstract

To achieve sustainable business IT alignment (BITA) requires firms to create a circular organizational structure that enhance interactions of major stakeholders. We aim to explore the issue, and in our study of SAAB, we find three viable components to design the organizational structure so it can foster the accomplishment of sustainable BITA: (1) Strong top management initiates the management boards so stakeholders across IT and business, and at different organization levels can participate in IT planning and decision making, (2) Business managers propose and engage in business related IT initiatives so they define critical requirements and needs, and they are responsible/accountable for BITA, and (3) CIO facilitates and coordinates planning, decision making, and implementation of ICT initiatives at ICT boards with a clear strategic focus on realizing business values. The paper explores unique insights of designing a circular organizational structure and its impacts on BITA, and contributes knowledge to IT management and practice.