In the digital era, IT governance and strategic alignment play a vital role in the decision-making processes of businesses. IT governance oversees the management of information technologies within a company, ensuring that the IT infrastructure actively contributes to the implementation of strategies and the achievement of set strategic objectives.
Strategic alignment enables teams to understand how their work aligns with the overall strategy of the company. In conjunction with IT governance, this approach provides the opportunity to optimize business approaches. In this article, Lemon Learning explores how to use IT governance to promote strategic alignment and reap the competitive advantages that result from it.
IT governance is guided by the principles of risk, relevance, behavior, and automation. In other words, the needs of your company determine the level and style of governance to be implemented. The measures taken should also be tailored to the level of risk, and the chosen solution must be implemented gradually. These key principles contribute to bringing value to your business.
They also imply transparency in decision-making related to IT, as well as a clear determination of roles and responsibilities to be assumed. In general, the roles to be specified are related to:
1. IT management and provisioning
2. System and architecture analysis
3. Cybersecurity and network administration
Since each role requires key skills, you must consider this when assigning roles to each member of your company.
Keep in mind that IT governance adheres to several standards (such as ISO/IEC 38500, for example) and has a reference framework. The main elements of the framework are COBIT and ITIL. COBIT allows you to implement an approach or process tailored to the needs of your company. As for ITIL, it helps you understand the best practices for the management and execution of IT services.
Strategic alignment encompasses the processes implemented to bring various teams together, considering all the strategic objectives of your company. It also ensures perfect coordination between your overall strategy, IT management, business services, organizational structure, as well as various departments (HR, production, etc.).
However, this concept involves several challenges. The primary challenge associated with this approach relates to developing an approach that allows for consideration of every long-term goal of the company. This requires a clear understanding of the future achievements of the company, meticulous planning, in-depth market analysis, and more.
To use it effectively, you can rely on the CIGREF approach or a model related to a successful example of strategic alignment. Most of these approaches recommend considering the specificities of your company:
1. DNA
2. General organization
3. Internal and external environment, etc
This strategy also requires identifying requirements that necessitate a redefinition of the IT approach. It also calls for close collaboration with the Chief Information Officer (CIO), other business services, and the use of suitable tools. Similarly, it demands the use of software capable of simplifying operational management.
IT governance can be an excellent driver of strategic alignment, provided that you integrate your business objectives into your IT. To achieve this, translate your business objectives into measurable IT services. This promotes the establishment of effective IT governance and helps fully utilize the allocated resources.
Encourage continuous communication between the Chief Information Officer and the team responsible for your company’s business. Prioritize solutions that align with your vision and needs, facilitating the implementation of systems necessary for business services. Request the CIO to develop infrastructures that contribute to optimizing operations in your domain.
Ensure that your IT investments align with your corporate strategy. In this regard, you can position IT as a support or development service. In the former case, it allows you to meet customer needs through the assessment of performance, quality, cost, and timelines.
Enable IT to address innovation needs expressed by other departments and introduce new trends, processes, or practices. This option implies that the CIO leads the digital transformation of the company and drives its overall strategy. Regardless of your choice, after deploying each solution, conduct an evaluation using appropriate tools for your business.
In the approach to strategic alignment through IT governance, common challenges are associated with managing cybersecurity risks, dealing with restricted budgets, and facing resistance within organizations. Coordination between IT and business teams can also pose challenges related to understanding and communication. Each challenge naturally has its implications.
For instance, cybersecurity risks highlight increasingly elusive cyber threats that can jeopardize the achievement of strategic objectives defined by leadership. To address these challenges, ensure the success of IT governance and guarantee effective alignment; it’s also important to consider the necessary steps and best practices.
One of the best practices to adopt is ensuring effective support from all stakeholders. Similarly, invest in developing the skills of IT teams and implement appropriate protective measures. Also, don’t hesitate to involve stakeholders in planning processes and integrate project management tools. In doing so, prioritize solutions or projects that align with your vision and seek the services of a professional company like Lemon Learning.
While strategic alignment brings several competitive advantages, it also sheds light on numerous challenges. As for IT governance, it is governed by various principles and standards that help frame its use. It is necessary for strategic alignment due to the importance of data and the digital expansion. It is also significant because it allows aligning technological investments with each long-term objective of your company.
IT governance has a reference framework and involves defining the roles, responsibilities of stakeholders, as well as adhering to rigorous steps. It constitutes the most effective lever for strategic alignment. To use and integrate IT governance effectively, you must consider the challenges to overcome and adopt best practices. Also, remember to engage in continuous strategic thinking to enhance the solutions at your disposal and stay informed about information technology trends.