IT budgets grow as business alignment shrinks

Technology and business departments still aren't singing from the same hymn sheet

Business decision makers are still out of tune with their IT decision-making peers, according to research.

And throwing money at the issue only exacerbates the problem, claims the survey of chief information officers (CIOs) conducted by the Stevens Institute of Technology.

The research found that, while budgets are increasing, organisational problems are far from decreasing. It cited a lack of alignment between business unit integration and IT as a major factor.

Less than one fifth (16 per cent) of businesses have a federated approach to technology with an IT function that is both partially centralised and embedded into specific units, according to the survey's findings

"Despite all the resources and technological innovation that the IT function benefits from, the needle hasn't moved in years on the state of alignment with the overall business," claims the report, which was authored by the institute's Professor of information services programmes, Jerry Luftman.

"Improvement in business process management should have been among the top-two areas of improvement and development between 2005 and 2006, but it wasn't. Web services, business intelligence and security technologies were the top developments, ahead of business process management."

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