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ICT<br />

Malta Business Review<br />

Why IT-business Alignment Still Fails<br />

By Minda Zetlin<br />

Contributing Writer, CIO<br />

With the push for digital transformation, relations between business and IT seemed<br />

to be improving, then they took a left turn. Here’s what’s worth add<strong>res</strong>sing to<br />

improve alignment in your organization.<br />

Do your company’s<br />

IT leaders and top<br />

business executives<br />

have the same<br />

understanding of<br />

IT’s role within the<br />

organization?<br />

Back in 2012, <strong>res</strong>earchers at Capgemini<br />

asked this question of more than 1,300<br />

senior executives. Sixty-five percent of them<br />

answered yes.<br />

Perhaps a number closer to 100 percent<br />

would have been ideal, but the fact that<br />

nearly two thirds of companies surveyed<br />

believed business and IT were on the same<br />

page was very good news. It rep<strong>res</strong>ented<br />

enormous and hard-won prog<strong>res</strong>s from the<br />

bad old days when business executives saw<br />

technology professionals as pointy-headed<br />

geeks, and technology professionals saw<br />

business executives as soulless and moneyobsessed.<br />

In the past six years, though, alignment<br />

between business and IT has gotten much,<br />

much worse. Asked that same question this<br />

year, only 37 percent of executives thought<br />

business and IT leaders agreed on IT’s<br />

role, according to a newly released study<br />

by Capgemini. And that’s not all. Only 35<br />

percent of <strong>res</strong>pondents think IT and business<br />

executives agree on how technology can<br />

increase productivity, down from 59 percent<br />

in 2012. Just 36 percent think IT and business<br />

leaders have the same view of IT investment<br />

priorities, down from 53 percent six years<br />

ago.<br />

This decline in business-IT alignment<br />

happened in an era when IT leaders <strong>final</strong>ly<br />

started getting the “seat at the table” they’d<br />

always wanted. Whether or not business<br />

leaders believe that “every company is a<br />

software company,” they all recognize the<br />

game-changing power of technology across<br />

all industries — and they’re exp<strong>res</strong>sing<br />

that recognition with cash. IDC forecasts<br />

that total worldwide spending on digital<br />

transformation technologies will exceed<br />

$1.3 trillion in 2018. <strong>MBR</strong><br />

Creditline: CIO<br />

Photo credit: Getty Images<br />

www.maltabusinessreview.net<br />

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