Business Modeling: The Road to Business-IT Alignment

by Alexandre G. Rodrigues

Business performance depends on the appropriateness of the business model adopted by organizations and on how effectively their IT infrastructure supports this model. Every day, companies are faced with the imperative need to align IT to their fast-changing business needs. The rapid technological developments in the IT arena also bring into question current business models. Our ability to achieve effective alignment on a continuous, proactive basis is a crucial factor for survival and prosperity in the market. However, turning the alignment concept into practice is not an easy task. Business modeling plays a key role in this process -- it is essential for organizations to learn how to practice this managerial activity. The accompanying Executive Report explores the reasons why and proposes a business-IT modeling framework, based on the use of a simulation modeling technique called System Dynamics (SD).