How to Align IT and Business

How to Align IT and Business

New Delhi, November 22, 2005 —IT has become a primary driver of business, yet more than 50 percent of organizations do not have a formal structure to ensure that IT is aligned with business strategies, according to a recent survey by the IT Governance Institute (ITGI).

When IT and business work in harmony to achieve common goals, the organization is more likely to realize maximum results. To provide guidance on achieving and maintaining IT and business alignment, ITGI released today IT Alignment: Who Is in Charge?, the fifth volume in the IT Governance Domain Practices and Competencies series.

Each of the publications in the series focuses on an aspect of one of the five domains of IT governance: risk management, value delivery, resource management, strategic alignment and performance measurement. The publications are based on a study of 200 IT professionals from 14 countries conducted by ITGI and Lighthouse Global.

IT Alignment: Who Is in Charge? covers strategic alignment and provides guidance on the responsibilities of the CIO, CEO and board.

“IT alignment helps enterprises achieve and sustain long-term success through value delivery to stakeholders,” said ITGI trustee Paul Williams, author of the publication and president of Paul Williams Consulting, UK. “To succeed in aligning the business and IT, the CEO and board need to be involved and committed.”

The publication provides 13 steps for maximizing alignment, including:

· Ensure that board members and senior managers are educated on the risks associated with IT and how business value arises from IT.

· Ensure that IT is a regular item on the board agenda—not just annually as part of the budgeting process.

· The CIO should be a full or ex officio member of the board, participating in all key business discussions and decisions. At minimum, the CIO must report directly to a board member.

· Establish an IT-related committee with active representation from senior business leaders and board members.

· Establish active IT investment portfolio management based on agreed-upon metrics and regular, reliable reporting.

IT Alignment: Who Is in Charge? is available at the ISACA Bookstore (www.isaca.org/bookstore) in print for US $30 and as a PDF download for US $20. The first four publications in the series—Information Risks: Whose Business Are They?, Optimising Value Creation From IT Investments, and Governance of Outsourcing, and Measuring and Demonstrating the Value of IT are also available at the ISACA Bookstore.

About ITGI

The IT Governance Institute® (ITGI) (www.itgi.org) was established in 1998 to advance international thinking and standards in directing and controlling an enterprise’s information technology. Effective IT governance helps ensure that IT supports business goals, optimizes business investment in IT, and appropriately manages IT-related risks and opportunities. The IT Governance Institute developed Control Objectives for Information and related Technology (COBIT) and offers symposia, original research and case studies to assist enterprise leaders and boards of directors in their IT governance responsibilities.