IT Alignment

Digital Architecture Model (accessible as of January 2023)

Digitization of the physical world enables and extends business strategies. IT Alignment is substantial to make use of innovative digital chances; it helps master the digital transformation of enterprises.

Digitization has tremendous impacts on numerous industries. It facilitates new services and changes the rules of the competition. Firms that neglect digitization today will probably lose market share, and eventually, disappear from marketplaces. Enterprises that provide customer value by digitization will achieve competitive advantage as a result.

The digital transformation of enterprises concern changes driven by digital innovations in product features, distribution, communication, pricing, or product/service positioning. Digital innovation puts the customer value in focus. The goal is to provide customer value, either economic, functional, or psychological. New opportunities can be seized by connecting smart devices, modifying business systems, and/or exploiting social trends. Smart devices connected to the Internet or private networks are the sense organs and the hearts of digital solutions. They allow collection of physical data, which is needed to provide novel products/services. Data is collected, analyzed, and used from many natural and artificial objects, and is permanently available, independent of location.

The terms digitization and digital transformation are interpreted in many ways; there is no clarity in theory and practice. In order to achieve a deeper understanding of digital concepts, the Digital Architecture Model will be presented as part of the IT Alignment Guide in January 2023. It aims to explain the core components of digital architectures and the differences to conventional IT architectures.

Source: Gellweiler, C., & Krishnamurthi, L. (2020). Editorial: How Digital Innovators Achieve Customer Value, Journal of Theoretical and Applied Electronic Commerce Research, Vol. 15, No. 1, pp. I–VIII.

The full text can be downloaded in the Research section.