Monday, June 24, 2013

LACK OF BUINESS-IT ALIGNMENT IN KENYAN ORGANISATIONS





-         Business-IT alignment is a dynamic state in which a business organization is able to use information technology (IT) effectively to achieve business objectives - typically improved financial performance or marketplace competitiveness. Some definitions focus more on outcomes (the ability of IT to produce business value) than means (the harmony between IT and business decision-makers within the organizations).

-         Business-IT alignment is the correspondence between the business objectives and the Information Technology (IT) requirements of an enterprise. These two factors often seem to contradict, but many economic and technical experts agree that alignment between them, maintained over time, is crucial to the success of an enterprise.
-         Business-IT alignment involves optimizing communication between executives who make the business decisions and IT managers who oversee the technical operations. The implementation of flexible business plans and IT architectures, as well as effective cost allocation, are critical components of any business-IT alignment effort. Technical department managers can formulate and submit proposals that can be tailored to ensure the optimum return on investment (ROI). Business executives can attend IT department meetings and seminars to improve their understanding of the technical capabilities and limitations of the enterprise.
-         This alignment is in contrast to what is often experienced in Kenyan organizations: IT and business professionals unable to bridge the gap between themselves because of differences in objectives, culture, and incentives and a mutual ignorance for the other group's body of knowledge. This rift generally results in expensive IT systems that do not provide adequate return on investment. For this reason, the search for Business / IT Alignment is closely associated with attempts to improve the business value of IT investments.
-         This is justified by lack of IT leadership in Kenyan organizations.
-         Ignorance by managers and head of departments.
-         Many Kenyan IT service provider companies are technology driven and therefore do not consider the business needs  of their clients can not translate business needs into technology solutions.
-         Cultural barriers, Kenyan companies view IT as an expense center than profit center.
METHODS
-         The research covered two Kenyan companies , talking to some of the employees identify randomly.
importance
-         Companies should adopt business-IT alignment because of the following reasons;
-         Reducing complexity
-         Helping small and mid-sized businesses become more competitive
-         Increasing the agility of organizations
-         Boost customer satisfaction
-         Making the workplace a more collaborative environment
-         Delivering IT systems on-time and within business expectations

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