Business-IT alignment in PSS value networks: A capability-based framework

Abstract

Advanced information technology (IT) is regarded as a foundation for the operation of product-service system (PSS) value networks. This requires alignment between IT and PSS business strategy. Business-IT alignment (BIA) in a value network can raise the ability of partners to collaborate effectively and improve network performance. However, the theory of traditional firm-level BIA is not tailored to the specific situations of PSS value networks. In this paper we investigate the applicability of BIA concepts and definitions at a PSS value network level. Alignment in firm-level literature looked at fit between business and IT capabilities. To substantiate this at a PSS value network level, we identified and classified generic value network business capabilities on the one hand and IT capabilities on the other hand. By exploring and discussing the interrelations between the two types of capability, a conceptual framework for understanding BIA in a PSS value network is derived.