Business-IT Alignment with Cash-Flow Based Price-Generating Model for IT Services
Business-IT Alignment with Cash-Flow Based Price-Generating Model for IT Services

Author(s): František Simetinger
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: Business-IT alignment via IT services; business model; IT strategy; pyramidal decomposition of EVA; cash-flow in IT
Summary/Abstract: Purpose:This paper is focused on the actual perception of strategic alignment of IT and business. The goal of this research is a summarizationof understanding the IT-related assets and identification of actual situation and gaps in the business-IT alignment. The main output of this paper is a proposalof the alternateconceptual method (model) which can change the understanding of business-IT alignment options. Design/methodology/approach:The literature research was conducted with the goal of identification actual situationand issues in the Business-IT alignment area from IT Governance, IT-related assets, and Strategic Management perspectives. Considering identified issues, new research results based on previously presented conceptual ideas and models are introduced. There are described developed metrics which address identified issues. Findings:Regardless of developments in the subject areas, the financial and economic perspectives of strategic IT management stay underdeveloped. This fact contributes to the disproportionof business and IT activities. For better alignment of business and IT is needed to find a moresuitable way how to synchronize goals on short, mid, and long-term basis and how to improve their interconnection. Research/practical implications:The proposed conceptual method is relevant for strategists from business and IT. It provides new perspective how to understand relationships between business and IT and it shows new direction how to design future business models. Originality/value:The proposed conceptual method is unique and provides an alternateviewpoint to business-IT alignment topic. It provides options for harmonization of activities of business and IT.

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