IT Objectives Research Articles

Identification of IT Governance and Management Objectives and Target Process Capability Level in Government Institution

This study attempts to review whether the organization's IT governance and management practices are appropriate, whether other practices are needed, and the level of capability required for the practices implemented. This study uses COBIT 2019 (Control Objectives for Information and Related Technology 2019) as a reference for guideline practices and COBIT 2019 design factors as a method to identify organizational IT governance and management objectives. Based on this research, it shows that organizational IT governance and management are in accordance with national policies. However, in implementation, it still needs improvement with several other IT governance and management practices according to COBIT 2019. Based on the final results of this study after refinement of the design factor, the proposed IT objectives and practices that meet compliance with a policy are APO 13, APO 12, BAI 08, BAI 06, BAI 09, APO 14, DSS 02, and APO 07. However, adjustments still need to be made by adding some of the practices that are in line with the characteristics of the organization, which are MEA 03, DSS 05, EDM 03, and BAI 11. This study identifies appropriate IT governance and management objectives in the Province of West Java, Republic of Indonesia.

Information Technology Governance Audit Using COBIT 5 Framework in the Natural Resources Conservation Office

One of the organizations that requires the implementation of good information technology governance is the natural resources conservation office. The audit was conducted to determine the level of IT process capability based on the COBIT 5 standard and to determine the level of gaps (gaps) owned by the natural resources conservation office. The process of implementing the audit begins with observing the agency's environment related to activity data and its implementation, then mapping the data with business objectives according to COBIT 5, followed by mapping business objectives with IT objectives to obtain IT processes. The IT processes obtained are then selected to obtain important IT processes according to company officials. The TI process obtained is then processed using the Guttman method. The results of the IT process capability level, namely EDM01, EDM02 and APO09, are at level 3 (established). The gaps found need to be given a corrective strategy to achieve the capability expected by the institution, namely 4 (predictable process) by providing recommendations regarding steps to achieve the expected capability value. The recommendations and improvements provided use ISO/IEC 15504:2 and ISO27002 standards which were obtained by mapping IT processes on COBIT 5.

Evaluation of Information Technology Governance Using the COBIT 5 Framework (Case Study of Integrated Licensing Service Agency Medan City Government)

IT governance is the responsibility of the board of directors and executive management in the organization. This, is an integrated part of organizational governance and contains leadership and organizational structures and processes that ensure that IT organizations contain and support IT organizational strategies and objectives implemented through applications or systems in the organization will provide added value to everyone who uses IT such as staff, managerial and directors, therefore IT is very much needed by organizations because it can provide added value to the organization. Application of IT as a supporting instrument in the administrative process as well as providing useful information for all circles, so that it is in accordance with the goals previously set. This is to ensure the use of information technology that can truly support the expected IT goals while also taking into account the efficient use of resources and risk management as the basis for IT governance. Keywords: Frame work COBIT 5 from ISACA.

“Information Technology and Organizational Learning – Managing Behavioral Change in the Digital Age”

Very often, leaders and senior executives focus on the technological aspect of digital transformation and neglect the human part in the digital initiatives. The book adopts the view that because of rapid technological advances, individual and group strategic learning is required to transform a business into a technology-based learning organization. Chapter two elaborates on various IT dilemmas – the key among which is the perceived inability of technology personnel to function as part of the business. [...]there is a need to better align IT and business objectives as a strategy.

IT Governance Improvement at Communication and Information Office using COBIT 5

Application of information technology in government institution, including the departments where this case study was conducted, is an attempt to improve the transparency and quality of internal and external services. The employment of information technology aims to support the vision, mission and goals of the organization with good governance. Good governance management requires an audit to determine if the organization's performance is in accordance with the designated goals, vision and mission. The audit procedure performed by COBIT 5 which starts with identifying the work indicators listed in the Regional Medium-Term Development Plan (RMDP), identification of business objectives, identification of IT objectives, IT processes, data collection through questionnaires. Results of audit, showed that the capability level of five IT processes were within low value level, namely APO04 at level 1, APO07 at level 1, BAI01 at level 2, APO08 at level 2, and EDM05 at level 1. These results were indicating a presence of GAPs between expected organizational achievements and the current situation. By employing several best practice standards, this audit established several recommendations to improve maturity level including alignment between business objectives and IT objectives as well as IT processes.

STRATEGIC ALIGNMENT MATURITY AND ITS EFFECT ON ORGANIZATIONAL PERFORMANCE OF JAPANESE SMALL AND MEDIUM ENTERPRISES

Purpose:Using a conceptual framework of Sledgianowski and Luftman (2001), this paper empirically investigates how Japanese SMEs view their Strategy Alignment Maturity, Short-term Linkage, and Organizational Performance. The author examines a theoretical framework for assessing strategic alignment maturity by using a survey data of Japanese small and medium companies. The relationship between strategic alignment maturity and the mutual understanding of business and IT objectives between business and IT executives is analyzed. Methodology: The methodology of this study is quantitative. Three hundred fifty-four (354) Japanese firm-level data collected have beenanalyzed using structural equation modeling. Main Findings:The results show that factors associated with IT-Business Alignment Maturityof Japanese SMEs are statistically significantly positively related to organizational performance. However, those are statistically significantly negatively related to Short-term Linkage.Although the linkage of information system plans with organizational objectives (business plans) are positively related, this study implies that the linkage of information systems and each factor of IT–Business Alignment Maturity is rather weakas previous empirical literature suggested. Applications:This study can be applied to the firm-level analyses where IT-Business Alignment Maturity and Short-term Linkage are in issue. Novelty/Originality:The author examines the relationship between strategic alignment maturity and organizational performance by using a survey data of Japanese small and medium companies.

MDCM, Inc. (A): IT Strategy Synchronization

“MDCM, Inc. (A): IT Strategy Synchronization” examines the issues of formulating an IT strategy and a set of IT objectives aligned with corporate strategy. Specifically, the case describes a firm that has grown rapidly through global acquisitions. As a result of these acquisitions, the new conglomerate is not responsive to the competitive environment. The firm has therefore launched a new transformation strategy called Horizon 2000, but it has yet to develop a corresponding IT strategy. Students solve Case A by applying the management by business objective framework and develop an executive-level IT strategy for the firm. This case is the first in a series; the second is the case “MDCM, Inc. (B): Strategic IT Portfolio Management.”The objective of the case is to have students analyze a firm's strategy and define the IT objectives for the firm. A key takeaway is that IT objectives should be systematically linked to corporate strategy. Students learn a framework and process for aligning IT objectives with business strategy. The framework consists of mapping corporate strategy to business objectives, to overall IT strategy, and finally mapping to specific IT objectives.

MDCM, Inc. (B): Strategic IT Portfolio Management

“MDCM, Inc. (B): Strategic IT Portfolio Management” examines the steps involved in developing a portfolio of IT projects aligned with a company's strategic objectives. Specifically, the case describes a situation where a firm has launched a transformation strategy but has yet to develop a complementary IT strategy. Students must select the optimal portfolio of projects aligned with the strategic objectives and define the global project execution strategy. The projects have both risks and dependencies. U.S.-based MDCM, Inc. specializes in medical device contract manufacturing and assembly. For the past five years, MDCM had grown by making more than twenty acquisitions of companies based outside the United States. This growth strategy enabled MDCM to better match its services to its customers, who had become larger and more global. In MDCM (A), the CIO of MDCM needed to determine the company's IT strategy and objectives. In doing so, he needed to ensure that they were properly aligned with the company's overall strategy and the new organization developed under an initiative called Horizon 2000. In a lecture prior to the cases, students should be introduced to the framework of IT portfolio management and how it can help focus IT efforts. In MDCM (B), the CIO has performed an audit of MDCM's IT and found twelve projects that are potential investment candidates for the next three years. The challenge for the IT Portfolio Management team is to identify the priority and appropriate sequence of investments to be made. The case assumes that students have knowledge of corporate IT. More specifically, the case is targeted for those who are or plan to become executives who would manage IT strategy and IT investment decisions either directly or in an oversight role. This case is the second in a series; the first is the case “MDCM, Inc. (A): IT Strategy Synchronization.”For this case, students create a portfolio management process and apply it to the IT project portfolio of a global manufacturing company. Students will learn how to balance risk and return of projects and short-term vs. long-term wins. They also create an activity network diagram, stressing the importance of understanding global resource constraints and execution timing. Students also learn the nuances of portfolio selection, e.g., outsourcing decision making and build vs. buy for a global firm.

Academic Architecture - Specific Expression and Evolution of the Enterprise Architecture Concept

The concept of enterprise architecture (organization) is a key instrument of modern strategic management that allows alignment of institutional, business and IT objectives of the organization in the process of transformation of the institutional vision and mission in long-term policies and strategies tailored to the specific nature and changes in the environment and resource availability promoting the pursuit and realization of the goals of the organization and implementation of controls to achieve them. Taking into account the specificity and diversity of activities within the framework of modern universities, we can expand and build on the concept of the Open Group (2006) about the nature and scope of the enterprise architecture, defining these hierarchical elements: (1) academic architecture, including institutional architecture University arising from its specific role of educational institution benefiting from an academic autonomy and creator of public good (educational product); (2) The architecture of institutional processes at the university, representing a collection of educational architecture, scientific architecture and business architecture; and (3) IT architecture, including architecture of information application architecture, and technology architecture.

The Alignment of Information Technology and Business Strategy in the Kuwaiti Companies

the fact that the business executives remain doubtful about the strategic value of information technology. One of the most critical issues facing organizations in Kuwait today is the alignment of information system strategy with the business goals and objectives. Only 28% of the surveyed companies in Kuwait claim that their IT objectives aligned to their business strategy which is a very low number. This paper uses a survey to investigate the alignment existence between the business objectives and IT strategy within different companies in different sectors located in Kuwait. The survey questionnaire distributed to IT managers and business executive managers in the selected companies. The suggested survey questionnaires have to do first, with the alignment exist between the IT strategy and the company Business objectives; Secondly, the barriers on strategic alignment arising in those companies. Keywordsalignment, strategic alignment, Alignment barriers, Information Technology

Shared Objectives and IT Achievements: CIO and Business Manager Perspectives

A survey of 128 CIOs and 103 other top business managers explores whether these management roles share the same views of IT objectives and achievements. The authors then consider whether a shared vision helps organizations achieve those objectives.

Managing IT as a business: The Lutchen’s Gap in the 100 Top Organizations based in Brazil

A common problem in IT management involves the lack of business vision on the part of IT executives who align IT to the strategic assumptions of the company, but forget the tactical functions of the former, managed as a business. This is known as the Lutchen's gap. Because of its importance in the context of IT management, this paper is a complementary approach to the preceding one from Rodrigues et al. (2009) and aims at identifying the Lutchen´s gap presence in the management of IT among the 100 top companies located in Brazil. To do this, we proceeded to a description of the profile of IT management in these companies, controlled by the executive board. We used a questionnaire filled out by IT executives, containing 77 questions covering the four functions of IT in a company. The main results indicate that: (a) In the IT's Alignment function, the design of IT reveals dichotomies between business and IT objectives (b) In the IT's Management function, the IT's budget is oriented toward ensuring delivering abilities to IT services and differing in the methods of cost control, ranging from apportion by volume, overheads and by ABC cost, (c) in the IT's Deliver function, evidence suggests that IT is managed as a business enabler; and (d) in the IT's Quality and Safety Assurance, IT executives monitor quality and safety events, but are limited to IT's basic operations. In conclusion, in the companies surveyed, IT is seen much more as on-demand solution provider, rather than as an instrument of innovation and competitiveness enabler for organizations.

Impact of Pressure for Environmental Sustainability on Grid Assimilation – Empirical Results from the Financial Services Industry

Due to the significant increase in IT-related power consumption and the resulting higher CO2 emissions, Green IT has gained considerable attention in industry and society in recent years. Green IT as an engineering paradigm encompasses the multi-faceted, global effort to reduce power consumption and the promotion of environmental sustainability. Due to several similarities between Green IT objectives and the environmental benefits of Grid technology, this article provides empirical evidence from the financial services industry emphasizing that Grid technology is capable of reducing the environmental impact of IT hardware. Furthermore, the article analyzes the extent to which pressure for environmental sustainability as well as different types of institutional forces impact on the intention of enterprises to use Grid technology as a means to reduce energy consumption of IT hardware, which is one of the key Green IT objectives.

The influence of strategy‐making types on IT alignment in SMEs

PurposeThe purpose of this paper is to evaluate and compare the influence of three strategy‐making modes (planned, adaptive and entrepreneurial) on IT‐business strategy alignment in small to medium‐sized enterprises (SMEs).Design/methodology/approachEmpirical research using a questionnaire was conducted. In total, 108 SME owners and managers participated in the study and the data were analysed using quantitative techniques.FindingsThe planned mode provided better results as predicted. Each strategy‐making mode was found to influence certain specific aspects of alignment and performance. For instance the planned mode ensures better understanding of business and IT objectives and provides high growth sales. The adaptive mode encourages participation of stakeholders in planning and improves communication and staff productivity. The entrepreneurial mode can facilitate immediate revision of plans in organizations operating in dynamic and competitive environment.Research limitations/implicationsMany factors influencing alignment were excluded. Second, the study was conducted in only three provinces and excluded the views of staff and IT personnel. These limit generalization of findings.Practical implicationsAssistance in planning and access to support programmes are necessary. Understanding the impact of SME characteristics can also assist the government in prioritizing resource allocations and focusing development programmes. The inconclusive results of this study, the impact on alignment of practices such as corporate governance, use of the balanced scorecard, and affirmative action should be researched further.Originality/valueThis was the first attempt to investigate the relationship between strategy‐making practices and IT alignment in South African SMEs. It provides empirical evidence confirming that these practices influence specific aspects of alignment and performance. SME managers can adopt the approach used to identify practices that ensure better alignment.

Role of innovation in IT in achieving its business objectives: a case study

This paper looks at the case study to evaluate IT contributions through innovations, which help business achieve its objectives. Research explored if IT is considered an equal partner while defining strategic directions. Research was undertaken in two stages: extensive literature review and empirical, interpretative case study based research. Literature review revealed a lack of established innovation frameworks/models essential for achieving desired success. A big gap between Business and IT objectives surfaced during research. Lack of IT participation while defining strategic directions appeared to be the main reason for non-alignment in objectives. Study findings revealed a lack of innovations in IT, essential for business achieving its objectives. Literature review and findings helped presenting recommendations in this paper, to overcome issues highlighted during the research. This paper emphasises on having strong leadership, optimal organisational structure and processes with clear roles, responsibilities to enable close collaboration between Business and IT to set strategic directions.

Can ITIL contribute to IT/business alignment? An initial investigation

Strategic alignment has been viewed as one of the main concerns of management and IT executives. Organizations have realized that in order to achieve competitive advantage, IT needs to be strategically aligned with business objectives. Strategic alignment enables organizations to choose IT applications that meet their needs and as a result, to enhance their profitability and reduce costs. Despite the importance of this matter and a large body of literature written on this subject, it has not yet been identified how it can be successfully achieved and maintained. This paper attempts to provide insight on this matter by investigating an initiative called Information Technology Infrastructure Library (ITIL), which ensures the effective and efficient delivery of IT services. The intention of this research was to identify how effective ITIL was in improving alignment between IT and business objectives.

Impacts of IS dependency on IS strategy formulation

The traditional view of Strategic Information Systems (SIS) study focuses on the linkage between information system strategies with its relevant strategies (e.g. business strategy, organisational strategy and IT objectives). This study extends this conventional notion by introducing a new perspective on SIS. Adopting McFarlan and McKenney's strategic grid framework, the purpose of this study is to empirically test the relationship between IS dependency and IS strategies using Structural Equation Modelling (SEM). We hypothesise that IS dependency practices will have a positive direct impact on IS strategies. The findings from this research will contribute to both practitioners who make information system decisions and IS researchers. The development of measurement, hypothesis and implications will be discussed.