Appendix B: The Five Levels of Strategic Alignment Maturity

Level 2: Committed Process

Organizations that meet many of the characteristics of the attributes in the six Strategic Alignment Maturity criteria for Level 2 can be characterized as having committed to begin the process for Strategic Alignment Maturity. This level of Strategic Alignment Maturity tends to be directed at local situations or functional organizations (e.g., Marketing, Finance, Manufacturing, H/R) within the overall enterprise. However, due to limited awareness by the business and IT communities of the different functional organizations use of IT, alignment can be difficult to achieve. Any business-IT alignment at the local level is typically not leveraged by the enterprise. However, the potential opportunities are beginning to be recognized.

Level 3: Established Focused Process

Organizations that meet many of the characteristics of the attributes in the six Strategic Alignment Maturity criteria for Level 3 can be characterized as having established a focused Strategic Alignment Maturity. This level of Strategic Alignment Maturity concentrates governance, processes and communications towards specific business objectives. IT is becoming embedded in the business. Level 3 leverages IT assets on an enterprise-wide basis and applications systems demonstrate planned, managed direction away from traditional transaction processing to systems that use information to make business decisions. The IT extrastructure (leveraging the inter-organizational infrastructure) is evolving with key partners .

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Level 4: Improved/Managed Process

Organizations that meet many of the characteristics of the attributes in the six Strategic Alignment Maturity criteria for Level 4 can be characterized as having a managed Strategic Alignment Maturity. This level of Strategic Alignment Maturity demonstrates effective governance and services that reinforce the concept of IT as a value center. Organizations at Level 4 leverage IT assets on an enterprise-wide basis and the focus of applications systems is on driving business process enhancements to obtain sustainable competitive advantage. A Level 4 organization views IT as an innovative and imaginative strategic contributor to success.