Business strategy and information systems alignment : a study of the use of enterprise architectures in Australian Government

Abstract

This thesis investigates the use of Enterprise Architectures ("the logical structuring and classification of descriptive representations of an enterprise") as enablers of alignment between business strategy and information systems in public sector agencies. The scope of this study has been shaped by Australian government policies that have set firm directions for the delivery of community products and services in the electronic domain. Foundation management and information systems theories, empirical studies and public management literature -have been used extensively in grounding this research study. A substantial body of literature has been reviewed, and this study positioned in the context of these prior literary works. In particular, the principal alignment theories have been adopted and the research model developed from the published works of eminent management and information systems researchers. The primary research question asks whether Enterprise Architectures are enablers of business strategy and information systems alignment, and if so, what are the associated alignment enabling processes? The study's four research themes are: (i) Enterprise Architecture frameworks and methods; (ii) architectural completeness; (iii) the social aspects of alignment (management support, business planning style, business plan communications); and (iv) the formal high level alignment mechanisms used by public agencies. The study has used an exploratory qualitative case_study research method that includes semi-structured and unstructured interviews, archival research and document discovery, public announcement and presentation information, organisational observations, and system demonstrations for the collection and triangulation of data. The case studies at four government agencies are presented as metastories of how Enterprise Architectures and other alignment mechanisms are used within the contextual frame of each public organisation. The research shows that Enterprise Architectures can be enablers of alignment within a public organization environment. Architectures possess the ability to define and describe the states of the agency business and technology domains, and the intimate domain relationships and processes that inform the agency's state of alignment. Changes in the agencies or their operating environments are reflected in the architecture and its subsequent evolutionary changes (such as new business requiring new supporting information systems and technology). Enterprise Architectures were considered as important enablers of alignment with each agency dedicating specialist corporate resources for architecture development and maintenance. The case studies showed that the origin (either internally developed or commercially acquired) of the agency Enterprise Architecture was not necessarily important for the enabling of alignment. However, organizations would do well to concentrate their resources on developing and implementing architectures that accurately represent and integrate the agency business and technology domains. The research used an architectural requirements framework, adapted from an International Standard (ISO 15704), to gauge architecture completeness. The study found that substantially complete architectures integrated the business and information systems entities, included the necessary components (such as the governance frameworks) to achieve strategic alignment, and offered opportunities for agency alignment. Architectures that were deficient in their business, technology or managerial orientations could display reduced clarity of the business and technology states, placing the organisations at risk of misalignment. The case research allowed the comparison of centralised and decentralised agency business structures and information systems, allowing explanations to be developed for the longer architecture implementation periods, and reduced architecture completeness at the decentralised agencies. In particular, the research findings point to the non-uniform application of decentralised resources, and the reduced corporate visibility of decentralised systems, as reasons for long architecture implementation periods, reduced completeness, and impaired alignment. The case studies identified that architectures develop and evolve over time and possess specific characteristics that assist the alignment process. Architectures acted as focal points for business entities and processes that are enabled by the supporting information systems. Architectures provided a mechanism for information systems and technology governance that jointly support business and information systems requirements. Architectures enabled agency information structuring and sharing for the support of business operations. Architectures supported the reuse of systems and technologies for the delivery of business strategies and plans. Other characteristics, such as using architecture as a corporate philosophy, were agency-specific and reflected the agency's culture, people, business capabilities, and corporate history. The detailed examination of management support, business planning styles and business plan communications, showed that the social aspects of alignment were important. In particular the study showed that executive managers must support business and technical directions through demonstrable understanding of the important business and information systems issues, and cohesive decision-making that is built on sound relationships between business and technically oriented executives. The case studies also showed that business plans that are horizontally and vertically integrated, and are well communicated and understood by stakeholders, assisted the enabling of alignment. Finally, the study uncovered several formal alignment mechanisms (such as corporate boards, agency plans, balanced score cards) that were consistent with alignment and governance theory and government management literature. The findings of the case research placed this study of alignment in a process or system frame, while empirically demonstrating that alignment is a continuous and dynamic process that combines several enabling mechanisms. The study showed that any research or conceptual analysis of alignment should consider the alignment mechanisms to operate in combination with each other. Future directions for alignment and architecture research were also described. Show more