1. Tut 5 Business / IT Strategy Alignment
More insights into Capability Maturity Models

2. Examples of IT strategy plan
Sample reports:
Procedural guidelines for developing IT strategy plans:

3. Capability Maturity Models (CMM) in General
Are assessment models are “health checking” tools that help to determine what a company needs to do in order to build or strengthen its people skills and systems to lift the company as:
a whole organisation, or
one of its business units or
An specific function
to the next level.
Such measures indicate the performance level of a company in terms of its whole enterprise capacity, or one of its business unit’s capacity or one of its functional capability when compared with other similar organisations.
(adapted from CMMI definition, 2015)

4. Luftman & Kempaiah ‘s IT Alignment Maturity Model
Is an example of CMM, specifically for assessing the performance level of how well a company performs in aligning its IT to its business.
This IT/business alignment is assessed via 6 dimensions
Communication effectiveness between IT & business units
Value measures of IT to the business
Enterprise Architecture Capacity (scope and architecture)
IT/Business partnership development & management capabilities
IT Governance and compliance capabilities in decision making and other management activities
IT and IT leverage Skills – the competency levels of the organisation in acquiring and using its IT resources to not just support business activities but to leverage strategic advantage

5. Luftman & Kempaiah ‘s IT Alignment Maturity Model
Source:

6. CMMI’s Capability Maturity Ladder
Luftman & Kempaiah’s CM Ladder 1 2 3 4 5
Levels
5. Optimised processes
4. Improved managed processes
3. Established Focused Processes
2. Committed Processes
Initial Ad hoc processes
Source:

7. Case Study
Level 1
Level 2
Level 3
Level 4
Level 5

8. Discussion
If one capability area is lacking, how does this diagram guide you to identify improvement suggestions?
Each box recommends the progressive improvement areas that can uplift the capability performance level.

9. Q&A
What IT management practice, system & decision improvements had been made to uplift the case’s CM level from 2 to 3?
CM Dimension
IT Management improvements
IT system improvements
IT decision making improvements
Communications
Value
Governance
Partnership
Scope & Arch
Skills

10. To do B1 & B2 You need to recall Business Strategy Types

11. Remember Last Week

12. This week

13. Q&A
B1) What are the types of business & IT strategies mix can be adopted by the case during the different stages of its growth development. Justify why you recommend the business/IT strategy types
Stage
Business Strategy Type
IT strategy Type
Stage 1 (1990 to 1993)
Stage 2 (post 1993)
B2) Evaluate the business/IT alignment level for each mix of business/IT strategies. Include in your evaluation the rating of the closeness (use: close, partial or lacking); the reasons or supporting commentaries for your selected rating
Stage
Business Strategy Type
IT strategy Type
Business/IT Alignment Evaluation Results
Stage 1 (1990 to 1993)
Stage 2 (post 1993)