IT-business relationship: How two dissimilar entities can forge a happy marriage
We talk about business-IT alignment, but what does that really mean? Here's a So what does the business/IT relationship look like in many. The first step to a successful business/IT relationship is understanding what a business/IT relationship means. Business relationship management (BRM) and customer relationship management (CRM) are different, yet must work hand-in-hand.
And IT can change the way IT and business leaders make investment decisions and assess the returns. Sometimes it's the personality of the IT leader.
A common complaint among senior executives is that their CIO seems to speak a different language from the business. Another is that the CIO doesn't seem to understand what's really important. For example, a chemical company CIO we interviewed described how he communicates regularly with business executives about the innovative possibilities of digital technologies.
Yet none of his business executive peers whom we interviewed separately seemed to find the discussions credible. According to Bud Mathaisel, who has served as CIO in several large companies, 'It starts with competence in delivering services reliably, economically, and at very high quality.
It is the absolute essential to be even invited into meaningful dialog about how you then build on that competence to do something very interesting with it. One business executive we interviewed said, 'IT is a mess. It's costs are not acceptable.
Business Relationship Management | IT Standard for Business
It proposes things in nine or ten months, where external firms could do them in three to nine weeks. We started offshoring our IT, and now our IT guys are trying to change. And in order for IT to be high-performing, it needs to have a good digital platform. In many cases, business executive share some of the blame If your approach to working with IT can be characterized by impatience, unreasonable expectations, or insisting on doing things your way, then you'll need to think about how to change your side of the relationship.
CIOs can help lead the business transformation, whether it's through shared goals with the business, creating a new governance mechanism, or creating a new shared digital unit. A bank executive stated, 'IT has been brought closer to business during the last five years. It is very important to success because man of the important transformations in our business are enabled by technology. Executives on both sides are willing to be flexible in creating new governance mechanisms or shared digital units.
However, leadership changes or top-down mandates are only the start of the change. As with any struggling relationship, the best starting point is to fix the way you communicate. These have indeterminate outcomes. A small-scale micro engagement cycle, characterized by one-to-one, discrete or transactional relationships. These have discrete cycles and negotiated outcomes.
How To Improve the IT-Business Relationship – J.D. Meier's Blog
BRM principles[ edit ] Measurement and analysis The goals of BRM require that its concepts and principles be identifiable and measurable. Given the model, a person should be able to identify the business relationships that they are engaged in, and measure them in terms like quantity or duration. The same holds for any aspect of BRM, such as type, role, or principle. Purpose Every business relationship has a purpose that requires the participation of multiple roles to accomplish.
The purpose of a given business relationship is discrete and quantifiable. Reputation and trust The BRM model should attempt to model and quantify reputation and trust. Every relationship, and every interaction within it, contributes to reputation. Reputation mitigates risk and reduces friction within business processes.
How To Improve the IT-Business Relationship
Concern for reputation incentivizes good behavior. Absence of trust will cause a business relationship to fail. Trust increases efficiency and enables conflict resolution. The relationship between trust as a traditional core concept  and in its emerging 'radical' form as a component of online community  must be described.
Governance The BRM model needs to account for and align with models of corporate governanceincluding business ethicslegal constraints, and social norms as they apply to business relationships. Boundaries The BRM model should define the boundaries of business relationships within the larger continuum of interpersonal relationships.
Relationship Between Information Technology and Business
In addition to governance issues, the model should examine if there are optimal levels of personal connection, and whether they differ by type, role, or other attribute.
The model should help define boundaries that optimize effectiveness while supporting good governance practices. Exchange and reciprocity The BRM model of exchange and reciprocity must extend traditional dimensions to account for not only financial exchange, but also time, money, knowledge, and reputation exchanges.