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Exploring the influence of National Cultures on Business - IT Alignment

Exploring the influence of National Cultures on Business - IT Alignment. A.J.Gilbert Silvius. ISACA Round Table meeting, Antwerp, 14 June 2011. 48 years of age, 2 kids Education: Royal Military Academy MSc Economics (Erasmus University) MBA (Catholic University Leuven)

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Exploring the influence of National Cultures on Business - IT Alignment

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  1. Exploring the influenceof National Cultureson Business - IT Alignment A.J.Gilbert Silvius ISACA Round Table meeting, Antwerp, 14 June 2011

  2. 48 years of age, 2 kids Education: Royal Military Academy MSc Economics (Erasmus University) MBA (Catholic University Leuven) PhD (Utrecht University) Experience: Royal Dutch Army (1981 – 1993) Getronics (1993 – 2004) HU University of Applied Sciences Utrecht(2002 – today) Van Aetsveld (2004 - today) Interests: Business IT Alignment Project Management Entrepreneurship in developing areas Gilbert Silvius Professor of Business, ICT and Innovation Program DirectorMaster of Project ManagementMaster of InformaticsMaster of Business Studies IEB Principal consultant Van Aetsveld gilbert.silvius@hu.nl www.gilbertsilvius.nl

  3. Agenda • Whythisstudy? • Conceptualization of the core concepts • Conceptualmapping • A smallscale test • Conclusions and limitations

  4. ICT as business innovator high Transforming ImpactonBusiness Informating Automating low ’60 ’70 ’80 ’90 ’00 ‘10

  5. But….

  6. Business and ICT Alignment

  7. BIA, what we know… • Alignment is multidimensional • Alignment relates to IT governance • Alignment relates to IT/IS strategy • Alignment pays off …. and what we don’t know. • Situational aspects • Size aspects • Cultural aspects • Organizational Culture • National Culture

  8. The impact of national cultures … on the adoption or perception of IT

  9. This study How does national culture influence the alignment of business and IT in organizations

  10. Thisstudy How does national culture influence the alignment of business and IT in organizations Business and ITAlignment Nationalcultures

  11. Business and IT Alignment

  12. OptimizedProcess Improved/ManagedProcess BusinessStrategy / Organization ITStrategy / Organization Established/FocusedProcess CommittedProcess Initial / Ad-Hoc Process Maturity of theBusiness & IT Alignment

  13. Business IT AlignmentMaturityVariables Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration:- Functional- Enterprise- Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment

  14. Thisstudy How does national culture influence the alignment of business and IT in organizations Business and ITAlignment Nationalcultures

  15. Culture “The collective programming of the mind, which characterize the members of one organization from others.” (Hofstede, 1991) Symbols Heroes Rituals Values

  16. Hofstede Most work on national cultures is based on Hofstede’s work • Data of over 100,000 individuals from 53 countries (1967 to 1973) Hofstedeidentifies 5 primary dimensions to differentiate cultures • PDI power distance • IND collectivism-individualism • MAS masculinity-femininity • UAI uncertainty avoidance • LTO long and short-term orientation

  17. PDI -------------- Malaysia Guatemal Panama Philippines Mexico Venezuela Arab countries Equador ….. Switzerland Finland Norway Sweden Ireland New Zealand Denmark Israel Austria IDV -------------- USA Australia Great Britain Canada Netherlands New Zealand Italy Belgium Denmark ….. Peru Costa Rica Pakistan Indonesia Colombia Venezuela Panama Equador Guatemala MAS -------------- Japan Austria Venezuela Italy Switzerland Mexico Ireland Jamaica Great Britain ….. Portugal Chile Finland Yugoslavia Costa Rica Denmark Netherlands Norway Sweden UAI -------------- Greece Portugal Guatemala Uruguay Belgium Salvador Japan Yugoslavia Peru ….. India Malaysia Great Britain Ireland Hong Kong Sweden Denmark Jamaica Singapore Hofstede (2)

  18. Thisstudy How does national culture influence the alignment of business and IT in organizations Business and ITAlignment Nationalcultures PDI IND MAS UAI

  19. Question How may Culture scores on Hofstede variables effect Business IT alignment scores on Luftman variables???

  20. Business IT AlignmentMaturityVariables Communications Understanding of Business by IT Understanding of IT by Business Inter-/Intra-organizational learning Protocol rigidity Knowledge sharing Liaison(s) effectiveness Value measurement IT Metrics Business Metrics Balanced Metrics Service Level Agreements Benchmarking Formal assessments/reviews Continuous Improvement Governance Business Strategic Planning IT Strategic Planning Reporting/Organization Structure Budgetary Control IT Investment Management Steering Committee(s) Prioritization Process Six IT Business alignment maturity criteria Partnership Business Perception of IT Value Role of IT in Strategic Business Planning Shared Goals, Risk, Rewards/Penalties IT Program Management Relationship/Trust Style Business Sponsor/Champion Scope & Architecture Traditional, Enabler/Driver, External Standards Articulation Architectural Integration:- Functional- Enterprise- Inter-enterprise Architectural Transparency, Flexibility Skills Innovation, Entrepreneurship Locus of Power Management Style Change Readiness Career crossover Education, Cross-Training Social, Political, Trusting Environment

  21. Conceptualmappingof the effect

  22. Conceptual mappingof the effect

  23. Question How may Culture scores on Hofstede variables effect Business IT alignment scores on Luftman variables??? Can this be tested?

  24. Belgium and the Netherlands

  25. Belgium and the Netherlands

  26. Expected differences

  27. A small sample test

  28. BIA maturity

  29. BIA maturity

  30. Results

  31. Conclusions and limitations • Evidencecanbefoundfor the impact of national cultures on the perceptionoradoptation of IT • Impact of national cultures on Business and IT alignmentmaybesuspected • As a conceptualexercisethis impact canbespecified • Smal scaletestingconfirmssome of the expectations, butnot all • More testing is needed to makeclearhownational cultures influence Business and IT alignment

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