It And Business Alignment

Use of IT technology

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Introduction to It And Business Alignment

ISO 38500 is defined to promote effective and efficient use of IT in all organizations. It guides enterprises to direct and control the demand and supply aspects of IT within firms. This standard works as a milestone in the evolution of IT governance concepts and practices. Standards Australia was prepared and adopted ISO 38500 standard which is a high level principles based advisory principles. In present era, this standard is very beneficial for the organizations in order to encourage them to underpin their governance of IT.

Scope and objectives: 

The guiding principle of the standard helps directors of the enterprises in order to effective and acceptable use of IT technology within the enterprise. By applying this standard, IT specialist can manage and control over information and communication use within enterprises. In all kinds of organizations include private, public, profit and non-profit enterprises this standard is applicable. The main purpose of this ISO standard is to assurance stakeholders that it they will follow these principles then IT governance will be execute successfully within company (Chan and Reich, 2011). For example, directors of the company can use this standard to better deal with risks raise in business processes such as security, privacy, spam and health and safety legislation etc. In addition, by using this standard, performance of enterprise would be improved in terms of alignment of IT with business needs, brings innovation in services, market and business and good relationship manage with stakeholders and reduction cost of enterprise.

Information technology has become an integral part of the organization as it allows improving the competency level. Using the advanced technology provides the widely features on the ground of achieving the organizational objectives. Here in this report the role of IT governance has been depicted in an appropriate manner. It is to acknowledge that it might be helpful on the ground of ensuring the good brand reputation as well and most importantly the organization can get the competitive advantage. To manage the corporate governance the ISO/IEC 38500 is an international standard (Hansen, Jaeger and Jaeger, 2012). It is a joint contribution and effort made by the international organization for standardization and the international electronically commission. This particular international standard is generally applicable for organizations active into any industry and deals in various business operations. Generally the role of ISO/IEC 38500 is huge with respect to taking the right decisions in the field of IT and communication. It act as a guideline for IT manager and helps higher authorities to manage the IT related corporate governance within the organization. Here in this report the special consideration has been paid to identify the benefits of following this international standard and alignment has been made with various management activities. There are various principles and fundamentals of ISO/IEC 38500 that can help in improving the level of IT governance within the organization  (Ross, 2003). These principles could be divided into the six categories; these are responsibility, strategy, acquisition, performance, conformance and human behavior. Following these principles is required at very large scale as it helps on the ground of ensuring the ethical business operations. 

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Elfin cars are one of the leading sports car manufacturer in Australia. The company is active into this business from last 50 years. Since then they have surpassed its competitors and have maintained all the legal aspects of corporate governance. It is something that might be helpful with respect to increase their sustainability and enable them to avoid the legal implications. The elfin cars has won the title matches for 29 number of times and most importantly they are able to create their edge in other competitions as well. It was founded in the year 1957 and Garrie Cooper establish the automobile manufacturer. They are one of the oldest car brands in Australia and they have distinct brand identity.  Thus Elfin cars must maintain the corporate governance of information technology and need to follow the international standard of ISO/IEC 38500. 

ISO/IEC 38500 principal is beneficial for managers and directors of Elfin cars enterprise in term of effective, efficient, and acceptable use of IT within their organizations. It provides opportunity to all stakeholders and other business partners to develop an appropriate governance and security framework for all IT activities. In addition, ISO/IEC 38500 applies to the governance of the Elfin cars and contributes in current and future use of IT and promote effective, efficient, and acceptable use of IT in all activities of car manufacturing firm from products design to deliver it to customer and managing better relationship with stakeholders and other business partners.

Framework: ISO/IEC 38500 frameworks are relevant to the company because it covers the following principles that can be described as follows:


Principle of ISO standard: it described that IT acquisitions are made for valid reasons. Managers and directors of enterprise should focus on to make balance between benefits, costs, opportunities and risks in both long and short terms goals. 

Article: In the given article, it is described that for creating a culture of trust and teamwork, organization should use community model. Further the directors or the managers of car manufacturing company are also required to get hold on the confidence level of customers. It explains that all the concepts of IT are followed by a business entity in very stringent manner.

Some suggestion to the organisation: As per the given case concerned, this organization used this principle because it provides opportunity to Australian base company in order to balance between benefits, opportunities, costs, and risks in an appropriate manner. In addition, on the basis of a business case and regular monitoring, managers of Elfin cars can take decisions regarding to IT investment (Vecchia, 2007).

Recommendation: On the basis of the given article, it can be said that firm should concentrate on making balance between cost and opportunities generate from governance of IT at the workplace. Elfin car manufacturing company should focus on proper implementation of management processes and applying this principle relating to the information and communication services used by an organisation in an appropriate manner.


Principle: In order to prepare policies and practices, it is essential for the directors and managers of the company to follow all mandatory legislations and regulations in an appropriate manner. This principle is used to ensure that all practices are clearly defined, implemented and enforced at the workplace in an appropriate manner.

Articles: From the article, it is to acknowledge that it might help on the ground of supporting the business operations. The IT systems which are going to be a part of business must be result oriented and there is huge requirement of focusing upon the performance of all the IT resources

Some suggestion to the organisation: Director and managers of the company should focus on proper implementation of this principle because it ensures Elfin car that IT system developed by enterprise complies with all legislation and regulations. IT may assist directors of Australian company to address and follow security, privacy legislation, and environmental legislation and regulations and health and safety legislation at the workplace in an appropriate manner (Fonstad and Subramani, 2009).

Recommendation: This principle can be applied at workplace through assuring conformance with obligations. They have to ensure that the applicability of IT sources is completely based upon the international standard. Organizations should try to satisfy their stakeholders with these IT practices and it foster them to put their trust of car manufacturer if the IT business activities of company are influenced by the ISO 38500 and its fundamentals. Conformance principle states that through following all mandatory legislation and regulations, Elfin would be able to frame policies and practices and implement them properly

Human behaviour:

Principle: This principle has been made by considering culture, needs and aspirations of people. IT policies, practices, decisions provide opportunity to understand current and evolving needs of all the people.

Articles: With the involvement of individuals, firm can give interdependent processes proper shape. Matrix structure provides a huge competitive advantage to the organization precisely because it is hard to sustain.

Suggestions to the organization: Most of the organizations are more emphasizing on implementation of this principle because it helps enterprise to examine the needs of all the people involved in business process. IT policies, practices and decisions help managers of Elfin cars firm to understand needs of all the people in the process. In addition, Australian base car manufacture firm can apply this principle through understanding needs of an individual and focus on accessibility and ergonomics at the workplace (Chan and Reich, 2011).

Recommendation: Apart from this, director of Australian base company should focus on using different strategies including communication, training, and reassurance along with this standard, so that company would be able to take benefits of this principle in a proper manner.

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Principle: ISO standard said this principle is applied in order to take current and future capabilities of IT and evaluate the current and on-going needs of the organization’s business strategy in an effective way.

Articles: Alignment research is said to be mechanistic and proper alignment, it is essential for the director and manager to follow six concepts such as moderation, mediation, matching, gestalts, profile deviation and co-variation etc.

Some suggestion to the organisation: Elfin car can take benefits from this principle because it helps company in terms of effective use of resources in support of the organization in its future activities. Director should be applied this principle at workplace through aligned business strategies with IT possibilities (Hirschheim, Welke and Schwarz, 2010). It would be helpful for enterprise because it encourages managers to support the business strategies.

Recommendation: It enables Australian Car manufacturing organization in terms of responding to new opportunities or challenges faced by company in its business. Director of the firm should undertake this principle while opening of new businesses or improve existing processes of company.


Principle: According to ISO principle, in respect of both supply and demand for IT, it is essential for individual and groups to perform their duties and role in an appropriate manner (International standard ISO/IEC, 2008).

Article: This article explores that Organizational Infrastructures & Process, IS Infrastructures & Process, IT Strategy and Business Strategy are required for IT alignment.

Some suggestion to the organisation: This principle states that by understanding and accepting their responsibilities, employees of company can be able to take appropriate actions within stipulated time. Australian based company Elfin car can apply this standard through assigning roles and responsibilities to its employees, firm can make balance between demand and supply of IT resources.

Recommendation: By following these principles and establishing proper integration among different departments, company would be able to evaluate current and future use of IT (Kappelman, McLean, Luftman, and Johnson, 2013).


Principle: This principle ensures that IT will support business processes within the enterprise and address the continuing normal operation of the business. In addition, through increasing protection of IT assets such as associated intellectual property, organizational memory and timely decisions about use of IT in support of business goals etc.

Articles: Thorough maintaining a clock speed set by digital world and even developing necessary information leadership capabilities, leaders can help firm in aligning organization’s information with technology vision.

Some suggestion to the organisation: The performance of IT system and proper alignment between IT system and business which lead Elfin cars to enhance their business benefits (International standard ISO/IEC, 2008).

Recommendation: Apart from this, Australian base organization should apply this principle through allocation of sufficient resources in order to meet needs of it and regularly evaluate the effectiveness of new system for Governance of IT. This framework helps enterprise to monitor over policies and measured performance against the plans.

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Principles: For good corporate governance of IT, ISO 38500 developed six principles. In order to apply these principles within enterprise active participation of directors are required (Keen, and Sawy, 2010). According to responsibility principle, it is responsibility to an individual one and groups to understand their responsibility and accept their responsibilities to perform actions in an appropriate manner. As per the strategy principle, Australian firm should make their business strategies in such a manner which takes into account the current and future capabilities of IT. By applying this standard, company would be able to meet their current and on-going needs effectively. On the basis of the valid reasons and on-going analysis, Elfin firm should make IT acquisitions so that decision making can be made clear and transparent. Apart from this, by applying this principle, Elfin Company would be able to collect information about opportunities, costs, and risks, in both the short term and the long term properly (Kappelman, McLean, Luftman and Johnson, 2013). According to performance principle of ISO, to meet current and future business requirements, service quality would be required. By managing quality and several positive changes will occur after implementation of ISO 38500 frameworks at Elfin cars such as the project being deployed on-time, outcomes measured in terms of cost savings, reviewed and advised on progress of the Employment Services System (ESS) and creation of a performance management framework for company etc. Conformance principle states that through following all mandatory legislation and regulations, Elfin would be able to frame policies and practices and implement them properly. Human Behaviour ISO principle stated that through evolving needs of all the ‘people of the car manufacturing company, proper decision can be taken at stipulated time.
Hence, it can be said that all these certain dimensions of ISO 38500 can lead towards the implementation of corporate governance at Elfin in an appropriate manner. All these dimensions are significant in their own way and give huge level of contribution in aligning with the business activities (Vecchia, 2007).


With the help of above report it could be concluded that ICT management can definitely helps on the ground of improving the productivity of company. There are various features of information and communication technology which contributes into the organizational success and help them in gaining the competitive advantage. The major factor is that through communication the company can easily manage the relationship with internal as well as external stakeholders. It helps the higher authorities to arrange the resources and most importantly the organization can deal with challenge as well. Ahead the role of ISO 38500 is also very much crucial in managing the level of corporate governance within the organization. With the help of cited international standard it become easier to depict the ethical management activities and business practices. The organization has to ensure their working within the desired direction (Geoffrey and Rousset, 2011). Further it also become clear that in order to manage the sustainability and profitability level there is huge requirement of relying upon the ICT management and international standard of ISO 38500. It is clear that with the help of such aspects the organization can put positive impact at stakeholders and improve their service quality as well. Thus in this way it could be mentioned that there should be proper alignment between IT and business operations. 

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