Summary of key findings:

Finding 1 – Study confirmed three IT Value Archetypes – A model of nine common organizational attributes identified three groups. Utility Providers are primarily focused on attributes related to managing common information management services. Process Optimizers have a matched focus on shared service attributes and business application and business process related attributes. Revenue Enablers have a near even mix of focus on enabling strategic revenue, business application and process, and shared services.

Finding 2 – Different archetypes have building-block competencies – analysis archetype attributes, as well as spending and performance data supports the conclusion that three archetypes have focus areas and competencies that build on one another.

Finding 3 – A few proven practices optimize ongoing alignment – Regression analysis identified 11 alignment practices that predict top levels of strategic alignment across the three groups.

Finding 4 – Achieving business integration instead of alignment – IT organizations at firms with highest alignment performance are actively engaged with and integrated to the business, not separate from and seeking alignment with the business.

Finding 5 – Improved strategic alignment can be engineered at three levels – An IT value archetype model can be use to improve strategic alignment at three levels; 1) by building and managing an IT organization with characteristics of a particular archetype 2) verifying the different attributes that define the archetype are in alignment 3) optimizing ongoing alignment performance by implementing proven practices for each archetype.

Study highlights:

• Only 36% of organizations in ITPI study indicate that their business clearly identifies business strategy, key success factors, competitive advantage, goals and objectives.
• The IT organizations with the highest alignment performance, have the lowest percentage of budget under IT governance control, but have the highest rage of annual budget growth.
• The IT organizations with the highest alignment performance, spend a greater percentage of overall IT budget on new projects (42%) as compared to lowest alignment performance group (27%).