ITIL Framework's Impact on BITA
ITIL Framework's Impact on BITA
Com
Department of ITM, Islamic Azad University, Electronic Branch, Tehran, Iran Department of Applied Mathematics, Islamic Azad University, South Tehran Branch, Tehran, Iran 3, Department of Computer, Islamic Azad University, Broujerd Branch , Broujerd, Iran
Abstract: Ensuring that IT and business have a more mature alignment relationship is recognized as being
critical to an organizations success. To achieve alignment leveraging, Information Technology Infra-structure Library (ITIL) is considered fundamental as a comprehensive approach to planning and managing IT actions within the organization, based on its business requirements. This survey reports on a study to assess the effect of successful ITIL Framework on the Business-IT alignment in an Iranian organization (municipality IT organization Of Tehran, Iran), using the Luftmans maturity model as the assessment tool.
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To develop a theoretical framework for testing the ITIL effects on BITA, multiple streams of related literature were examined. This consisted of studying previous and recent research literature to identify the nature of research that has been done thus far and what is yet to be studied, in the future. 2.1 Business-IT alignment Business-IT alignment is the highly desired state in which an organization can effectively use IT to achieve its business objectives. This term particularly encompasses the efforts of the IT and business professionals to bridge the gap prevalent among the stakeholders of the organization, owing to differences in objectives, culture and incentives,including a reciprocal unawareness of one another.Aligning business with IT is a fast growing concept that was initially introduced in the 1970s; however, senior managers were not able to actually apply alignment in their organizations until the 1990s, when a systematic model was presented by Henderson and Venkatraman (1993). Studies show that organizations with IT-enabled growth are not only positively affected by economic impacts (e.g. increasing sales and decreasing expenditures) [11], they can also achieve a better strategic match, a more efficient IT architecture and more core competencies, as well as better decision-making and faster competitive reactions. Several definitions have been proposed on BITA by scholars, of which the more important are listed below: Applying IT in an appropriate and timely manner, in accordance with existing business strategies, goals and needs [10]. Matching business requirements with relevant IT services [7]. The degree to which the IT applications, infrastructure and organization enable and support the business strategy and processes, including the processes to realize this [6]. Aligning the information systems (IS) capabilities with the business goals [8]. Looking beyond immediate business needs, considering technology trends and competitive landscape to play a proactive role in shaping business strategy by applying IT [1].As seen from the above, most of the definitions focus on a unilateral alignment; however, some definitions consider a bilateral relationship between business and IT. Due to this wide spectrum of definitions, several methods and frameworks have been developed to align business with IT.As shown in Table 1, the features characteristic of the different BITA models reveal that this concept can be realized at three levels [11].After carefully reviewing the literature, this study clearly approves the classification given below. Alignment of IT/IS with business goals and strategies is the first level of BITA [9] [12]. The second level shows aligning IT/ IS features with the requirements of the external environment of the organization [13]. Finally, the third level of BITA is related to the organizations future changes [8].Achieving BITA is noteworthy and considered to be an evolutionary and dynamic process, requiring strong support from senior management, mature relationships, powerful leadership, appropriate prioritization, trust, and effective communication, as well as a reciprocal understanding of the business and IT units [10]. 2.2 ITIL One possible way to achieve alignment is for IT organizations to transform themselves into service providers [12]. Being a service provider means using IT as a solution to business problems and running the IT department as a business function. It also means providing a new competitive strategy. This is because the focus of the companies moves toward customers and providing high quality products and services at low cost to satisfy their demands [13]. In order to be an effective service provider organizations are required to have high quality ITSM[12]. ITSM is concerned with delivering and supporting IT services that are appropriate to the business requirements of the organization [14]. ITSM uses the best practice ITIL approach to improve delivery and support of IT services. ITIL will enable organizations to improve their IT service management [12].Information Technology Infrastructure Library (ITIL) has introduced with Office of Government Commerce (OGC). It has three versions: ITIL Version 1, ITIL Version 2 and recently ITIL Version 3. After ten years use of ITIL V2, ITIL V3 was introduced in 2007 by OGC. The context of this publication of the ITIL is the ITIL framework as a source of good practice in service management. [15] For better understanding of ITIL, here some difference of ITIL V2 and V3 will discussed. ITIL Version 2 deals primarily with aligning IT to the business. but ITIL V3 will enable organizations to move from alignment of IT with the business to the integration of IT with the business. [16]The ITIL Version 3 Library has the following components [5]: The ITIL Core: There are five volumes as best practice guidance applicable which covers all types of organizations who provide services to a business. The structure of the core is in the form of a lifecycle (Figure 1). It is iterative and multidimensional.
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Clarke (1994)
Clarke
External needs
Fujitsu
External needs
Wegmann (2002)
SEAM
External needs
Future business
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BITAM
Future business
Current business
B-SCP
Current business
Current business
Scholar Luftman(2000)
Papp(2001)
Silva et al (2006)
Tapia (2007)
Table 2 The comparison of the BITA maturity models Model Characteristics Luftman Qualitative approach Multi-level assessment Using Likert scale(15) Experienced in many organizations (Luftman 2000; Luftman and Kempaiah 2007) Papp Qualitative approach Based on SAM (Henderson and Venkatraman 1993) Single-levelassessment Using Likert scale (17) Qualitative approach Based on Luftmans model (Luftman 2000) Multi-level assessment Assessing strategic, tactical and operational alignment SBITA-TD Quantitative approach Based on SAM (Henderson and Venkatraman 1993) Multi-level assessment VITALMM Qualitative approach Single-levelassessment Focusing on workflow structure, ITgovernance, enterprise architecture, IT/business processes, and coordination
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III.
Hypothesis1:
Thecommunications between the various parts of the business and IT in an organization and their awareness of each other (communications) can be improved by running an ITIL Framework. Hypothesis 2: Conducting an ITIL Framework will positively influence the demonstration of IT values to the business in terms that the business understands Competency/ value measurements). Hypothesis 3: Conducting an ITIL Framework will positively influence the IT decision-making, IT prioritization and IT resource allocation (governance). Hypothesis 4: The relationships between thebusiness and IT units in an organization including their partnership on the risks and benefits (partnership) will be positively influenced by running an ITIL Framework. Hypothesis 5: Conducting an ITIL Framework has apositive impact on the standardization , integration and managing the business needs (scope and architecture). Hypothesis 6: Running an ITIL Framework in the organization will positively influence the human resource considerations (skills). If hypotheses 1 to 6 are true, then automatically the main proposition of the study (i.e. conducting an ITIL Framework positively impacts the BITA maturity) will hold true and by virtue of this, the moment one of them is false, the main proposition will also be false.To address the research hypotheses, a survey of organization in Iran that recently ran and completed an ITIL Framework between 2011 and 2012 was conducted. The qualitative approach was adopted for this research because of the small sample size. The research methodology in this study involved presenting a questionnaire listing 39 questions, based on six components and their measures corresponding to the Luftmans model, to evaluate the BITA maturity in a valid manner, in each organization. This questionnaire included two similar parts: one to be answered before implementation of the ITIL Framework and Earlier, to score each of the 39 questions, respondents had been requested to select an option from a multiple choice list of five statements. These five statements were designed to represent a continuum from the first, signifying the lowest level of alignment maturity to the fifth statement, signifying the highest level. In the next step, these selected options were mapped to the scores 1 to 5. Thus, the systemized concepts were utilized instead of subjective numbers, to increase the validity of each measurement [11].The six measures of the BITA maturity described earlier were used. As mentioned above, CIOs were requested to respond by selecting the item that most accurately described the BITA scenario of their organization, before and after conducting the ITIL Framework there. Their responses were then analyzed. The matching calculation utilized the differences between the corresponding factors in the two states.Furthermore, the research hypotheses of this study postulated that conducting the ITIL would definitely enhance the maturity of BITA in organizations. To address these hypotheses, the mean of these enhancements in each six measure were employed and the results sorted out. The research model in this study is shown in Fig. 2.Statistical analyses were performed by SPSS. Prior to data analysis, the research instrument was assessed for reliability as well as validity. It appeared that the research tool would be valid because a questionnaire containing 39 Luftmans standard measures ,was used. Moreover, Cronbachs alpha was employed to analyze the reliability of this tool.Regarding the hypotheses of the research, this data was also analyzed by the t-test for paired samples , and significant results explained in the next section, were identified.
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IV. Data And Results 4.1 Data collection, validation and verification A two-part questionnaire, including a complete description of our purpose, ITIL Framework definition, the organizational scale of the project, and 39 questions based on the Luftmans model, was prepared in Microsoft Excel format and distribute it to municipality IT organization Of Tehran. 50clerks of the organization selected were requested to answer the questions, once before conducting the ITIL Framework and once again after deployment. Finally, 33 clerks responded with completed questionnaires for both states, after our followup, in six months.Eventually, the verified data was imported into SPSS.The frequencies of the observed measures are shown in Table 6 of Appendix A. Figure 3 shows the line graphs for each of the six main criteria of the Luftmans model. As shown in these graphs, all measures show a conspicuous improvement in their maturity scores after conducting the ITIL Framework. 4.2 Construct validity Construct validity is the degree to which the variables employed in the study accurately measure the concepts they purport to measure [21]. It basically refers to this question, Are the theory and information sources used in the study adequate? In qualitative research, construct validity involves the development of a set of measures to collect data [22], and ensures that the study focuses on specific factors related to research objectives [23].The original source for the metrics was considered a well-known framework to assess the BITA maturity, and the information proceeding from it should be valid because the variables were derived from an instrument that had been successfully applied in a similar study type [11].Moreover, construct validity was met by utilizing multiple sources of evidence. In this investigation, the authors used several different sources of data to answer the research questions. The sources included documentation, workforce interviews, and observation of firms. Data collection focused on specific IT projects and the organizations operations related to the criteria of the research model, rather than to all their processes. 4.3 Internal validity Internal validity is most relevant in causal studies, where the researcher attempts to determine specific actions leading to predicted results [22],and refers to this question, Was the intended answer really selected? In causal studies, internal validity requires that all possible cause and effect relationships are accounted for in the methodology design. The methodology accounted for the internal validity by utilizing multiple sources that were triangulated against the aim of the study to determine how CIOs could assess the alignment between business and IT in their organizations by employing a set of selected criteria. Feedback from interviews showed that the selected measures had adapted well to the CIOs insights, which ensured that the proper metrics had been selected and customized. This was understood by comparing the results obtained from the respondents and the outcomes from investigating other sources of evidence. 4.4 External validity External validity depends on whether the results of a study can be generalized and applied to other, similar cases [22], and raises the question, Can the results and findings of a study be generalized? To achieve
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some degree, representative of this class of subjects. Any generalization of the results regarding organization size or even type needs to be made cautiously.However, what should be emphasized is that the research presented in its current stage is exploratory in nature and merely the first step in a series of experiments, which could yield results which will prove amenable to more generalization, in the future. 4.5 Reliability The reliability of a study design refers to the ability of an instrument to consistently measure an attribute ,and ensures that a different researcher conducting exactly the same study, employing the same methodology on the exact same participants would end-up with the same results [22]. This implies that the experiment is replicable [21].As mentioned earlier, Cronbachs alpha, which is the measure of internal consistency or reliability of a psychometric test score for a sample of examinees, was applied to analyze the reliability of different sections of the questionnaire.Alpha can take on any value less than or equal to 1, including negative values, although only the positive values make sense. The higher values of alpha are more desirable [24]. The coefficient was found to be 0.826 for before ITIL and 0.879 for after ITIL; therefore, two parts of the questionnaire were reliable because the values of in both cases were well above the acceptable
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V.
Discussion
Beginning with the results presented in this section, interpretations and possible Table 3 Descriptive statistics of the research variables
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explanations of the outcomes of the experiment are mentioned below.Testing the positive effect of the ITIL Framework on BITA confirmed a statistically significantly beneficial impact on the change of scores from before ITIL to after ITIL for the variables of the BITA maturity. This provided ample evidence for the assumption that an ITIL Framework can play an effective role in BITA improvement.Moreover, comparing the values listed under column mean for similar variables in Table 3 reveals that the differences between both statuses differs from one BITA domain to another. However, no identical effects were identified for different variables, although running an ITIL Framework was assumed to be an excellent tool to increase the BITA maturity. Table 5 shows descriptive statistics of the differences between the two states of the main criteria.Based on the values of mean in Table 5, the effect of an ITIL Framework on each component of BITA maturity is listed as below: 1. Governance (1.2313) 2. Communications (1.0001) 3. Skills (0.989) 4. Competency/value measurements (0.6706) 5. Scope and architecture (0.6667) 6. Partnership (0.3599) It is also clearly understood from Table 6 of Appendix A that a totally meaningful movement has occurred from levels 1 and 2 to levels 3 and 4 of the maturity scores.
VI.
Conclusions
Performance evaluation of enterprise architecture in aligning business and information technology is the main purpose of this study. To achieve this goal, An Iranian governmental organization which had successfully completed an ITIL Framework since 2011 was selected, and their BITA maturity was assessed as an effective method of evaluating the alignment between business and IT. A two-part questionnaire based on criteria of the Luftmans model was prepared and sent out to the selected organization. Fully completed questionnaires that had been received were revised cooperatively and used in the final analyses.Although this study is a significant contribution, particularly to both ITIL and business-IT alignment research as it reveals the relationship between the successful ITIL deployment and the BITA maturity, additional works are required to examine why the factors Partnership and Scope and architecture contributed less significantly to the respondents self-rated maturity level. This could be attributed to the small size of the study sample (only One organization), excluding the IT and business executives participants in this survey, or for other reasons yet undiscovered, and which should ideally be identified through a more thorough study based on the larger amount of data. Appendix A. Collected data based on the Luftmans model Table 6 shows the frequencies of the observed data in this survey. This data was collected from one Iranian organization for two states: before performing their ITIL Framework and after that.
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Understanding of IT by business
Inter/intra-organizational learning
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Before Career crossover After Before Education, cross-training After Before After Social, political, trusting environment
Refrence
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