1 A Research Study of IT Alignment Prepared by:

In May, 2007, we undertook a study at Santa Clara University to investigate the lingering problem of IT alignment. Our findings confirmed that: 1) There is no generally agreed-upon definition of IT alignment; 2) Optimal IT alignment is an elusive target and we found no singular instance of it in our study; and 3) In the absence of optimal IT alignment, some CIOs have adopted creative approaches that appeared to be producing value for their respective corporations. We report on these findings. We subsequently apply a business strategy lens to the IT alignment problem and make some observations and recommendations. 1. Optimal IT alignment can only occur if IT is aligned with the business goals of the enterprise. Aligning IT with the business units, or with enterprise strategies will produce suboptimal performance. 2. In order to effectively align IT with the enterprise goals, the goals must: a) exist; b) be clearly stated; and c) must truly be goals, and not as so often occurs, be means to achieve the goals, i.e., strategies. This will require greater knowledge of the strategy process and the strategy vernacular than currently exists amongst both senior business executives and IT executives. 3. Effective IT alignment begins with the corporation valuing IT as a strategic resource, and not solely as a support or operational resource. Once IT is valued as a strategic resource, a seat at the corporate strategic planning table will be more achievable, and in turn, alignment with the goals of the enterprise will be made possible. None of this can occur unless the IT executive learns business strategy as well, or better, than the corporate executives. 4. We should do away with the term “alignment ” and replace it instead with the term that more accurately describes the mission of the IT organization--- namely