Why does business-IT alignment still fail?

It's no surprise that an organization's business and technology areas need to be tightly aligned. And the IT executives and CIOs of companies need to have the same understanding of the role of the technology sector within the organization's business so they can move forward together with the business areas in pursuit of the best results. However, in recent years, the alignment between business and IT has worsened. In 2012, researchers at Capgemini asked over 1,300 executives whether they considered IT and CIOs to be aligned, and about 65% said yes. In 2019, the same survey was conducted and only 37% of executives said business and IT leaders agreed on the role of IT, according to a recently released Capgemini study. And that's not all. Only 35% of respondents believe that IT and business executives agree on how technology can increase productivity, compared to 59% in 2012. Only 36% said that IT and business leaders share the same vision for IT investment priorities, compared to 53% six years ago. It's interesting to note that this decline in business and IT alignment occurred in an era when IT leaders finally began to secure the "seat at the table" they had always wanted. Whether business leaders believe that "every company is a software company" or not, everyone recognizes the revolutionary power of technology across various sectors—and they are expressing that recognition with money. IDC predicts that global spending on digital transformation technologies will exceed $1.3 trillion in 2018. In other words, in recent years, business leaders have come to value IT like never before. At the same time, their confidence in the people managing IT has plummeted. It's time to ask: what went wrong? The pace of change is hard for everyone The blinding speed of technological innovation today is overwhelming IT leaders and staff working with technology. So, it's easy to forget that rapid technological change also creates major concerns for business leaders in the executive suite, such as their organization running the risk of falling behind established competitors or new disruptive startups. Having a seat at the table creates new challenges Today, IT leaders are routinely included in strategic decision-making and are asked to assess all the possibilities a new strategy can generate for the company. At the same time, the growing stature of IT can unsettle some C-level executives because it shifts the balance of power.

Source: CIO 

   

Frequently asked questions

Why has IT-business alignment gotten worse in recent years?

According to Capgemini research, the share of executives who considered IT and business aligned dropped from about 65% in 2012 to 37% in 2019. The study shows that as technology gained a stronger role in strategic decisions, that shift in power also created distrust between IT and business leadership.

What does the Capgemini research show about IT and business agreement on productivity and investment priorities?

The research found that only 35% of respondents believe IT and business executives agree on how technology can boost productivity, down from 59% in 2012. It also found that the share of executives who say IT and business leaders share the same view on IT investment priorities fell from 53% to 36%.

Why has having a seat at the strategic table created new challenges for IT leaders?

IT leaders are now routinely included in strategic decision-making and asked to assess the possibilities a new strategy can create for the company. According to the text, this growing stature of IT can unsettle some C-level executives because it shifts the balance of power within the organization.