Advertisement

Customer–Provider Strategic Alignment: A Maturity Model

  • Jerry Luftman
  • Carol V. Brown
  • S. Balaji
Chapter
Part of the Service Science: Research and Innovations in the Service Economy book series (SSRI)

Abstract

This chapter presents a new model for assessing the maturity of a ­customer–provider relationship from a collaborative service delivery perspective: the Customer–Provider Strategic Alignment Maturity (CPSAM) Model. This model builds on recent research for effectively managing the customer–provider relationship in IT service outsourcing contexts and a validated model for assessing alignment across internal IT service units and their business customers within the same organization. After reviewing relevant literature by service science and information systems researchers, the six overarching components of the maturity model are presented: value measurements, governance, partnership, communications, human resources and skills, and scope and architecture. A key assumption of the model is that all of the components need be addressed to assess and improve customer–provider alignment. Examples of specific metrics for measuring the maturity level of each component over the five levels of maturity are also presented.

Keywords

Service system maturity framework IT outsourcing customer–provider strategic alignment customer–provider relationship management collaborative service delivery IT services alignment 

References

  1. Balaji, S. (2008). IS Outsourcing Effectiveness: Understanding the Effects of Relationship Diversities, Client Capabilities and Knowledge Capital Gains. Ph.D. Dissertation, Indiana University, Bloomington.Google Scholar
  2. Barretto, C. B. (2004). Weekender: Labor & Management. Business World, p. 1.Google Scholar
  3. Caldwell, B. (2002). 2001 Trends in IT Outsourcing Delivery, Solution Development, Marketing, Sales and Alliances. Gartner Dataquest. http://www.Itclive.com/e-mail/docs/2001trendsoutsourcing.pdf . Accessed 18 November 2004.
  4. Grover, V., Cheon, M.J. and Teng, J.T.C. (1996). The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions. Journal of Management Information Systems, 12(4), 89–116.Google Scholar
  5. Hawk, S., Zheng, W. and Zmud, R.W. (2009). Overcoming Knowledge-Transfer Barriers in Infrastructure Management Outsourcing: Lessons from a Case Study. MIS Quarterly Executive, 8(3), 123–139.Google Scholar
  6. Henderson, J. and Venkatraman, N. (1993). Strategic Alignment: Leveraging Information Technology for Transforming Organizations. IBM Systems Journal, 32(1), 4–16.CrossRefGoogle Scholar
  7. Heskett, J.L., Jones, T.O., Loveman, G.W., Sasser Jr. W.E., and Schlesinger, L.A. (1994). Putting the Service-Profit Chain to Work. Harvard Business Review, 72(2), 164–174.Google Scholar
  8. Jia, R., Reich, B.H. and Pearson, M.J. (2008). IT Service Climate: An Extension to IT Service Quality Research, Journal of the Association of Information Systems, 9(5), 294–320.Google Scholar
  9. Johnson, M.D. and Seines, F. (2004). Customer Portfolio Management: Towards a Dynamic Theory of Exchange Relationships. Journal of Marketing, 68, 5.Google Scholar
  10. Keen, P.G. (1991). Shaping the Future: Business Design through Information Technology. Harvard Business School Press, Boston.Google Scholar
  11. Kettinger, W.J. and Lee, C.C. (1994). Perceived Service Quality and User Satisfaction with the Information Services Function. Decision Sciences, 25(5), 737–766.CrossRefGoogle Scholar
  12. Lacity, M.C. and Willocks, L.P. (1998). An Empirical Investigation of Information Technology Sourcing Practices: Lessons from Experience. MIS Quarterly, 22(3), 363–408.CrossRefGoogle Scholar
  13. Lee, J. and Kim, Y. (1999). Effect of Partnership Quality on IS Outsourcing Success: Conceptual Framework and Empirical Validation. Journal of Management Information Systems, 15(4), 29–61.Google Scholar
  14. Luftman, J. (2000). Assessing Business-IT Alignment Maturity. Communications of the Association of Information Systems, 4(14), 1–50.Google Scholar
  15. Luftman, J. and Kempaiah, R. (2007). An Update on Business-IT Alignment: A Line Has Been Drawn. MIS Quarterly Executive, 6(3), 165–177.Google Scholar
  16. Luftman, J., Kempaiah, R. and Rigoni, E. (2009). Key Issues for IT Executives 2008. MIS Quarterly Executive, 8(3), 151–159.Google Scholar
  17. Maglio, P.P., Srinivasan, S., Kreulen, J.T. and Spohrer, J. (2006). Service Systems, Service Scientists, SSME, and Innovation. Communications of the ACM, 49(7), 81–85.CrossRefGoogle Scholar
  18. March, J.G. (1988). Decisions and Organizations. New York: Basil Blackwell.Google Scholar
  19. Marcolin, B.L. (2002). Spiraling Effects of IS Outsourcing Contract Interpretations. In R. Hirschheim, A. Heinzl and J. Dibbern (Eds.), Information Systems Outsourcing: Enduring Themes, Emergent Patterns and Future Directions (pp. 277–311). Berlin: Springer-Verlag.Google Scholar
  20. Markus, L.M., Steinfeld, C.W. and Wigand, R.T. (2006). Industry-wide Information Systems Standardization as Collective Action: The Case Study of the U.S. Residential Mortgage Industry. MIS Quarterly, 30 (Special Issue), 439–465.Google Scholar
  21. Mehta, N. and Mehta, A. (2009). Reducing the Client Risks from Human Resource Challenges of Offshore IT Vendors. MIS Quarterly Executive, 8(4), 191–201.Google Scholar
  22. Nash, E. (2005). Assessing IT as a Driver or Enabler of Transformation in the Pharmaceutical Industry Employing the Strategic Alignment Maturity Model. Ph.D. Dissertation, Stevens Institute of Technology, Hoboken.Google Scholar
  23. Nolan, R. and McFarlan, F.W. (2005). Information Technology and the Board of Directors. Harvard Business Review, 83(10), 96–106.Google Scholar
  24. Parasuraman, A., Berry, L.L. and Zeithaml, V.A. (1985). A Conceptual Model of Service Quality and Its Implications for Future Research. Journal of Marketing, 49(4), 41–50.CrossRefGoogle Scholar
  25. Parasuraman, A., Berry, L.L. and Zeithaml, V.A. (1988). SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 64(1), 12–40.Google Scholar
  26. Poppo, L. and Zenger, T. (2002). Do Formal Contracts and Relational Governance Function as Substitutes or Complements? Strategic Management Journal 23(8), 707–725.CrossRefGoogle Scholar
  27. Poston, R.S., Kettinger, W.J. and Simon, J.C. (2009). Managing the Vendor Set: Achieving Best Pricing and Quality Service in IT Outsourcing. MIS Quarterly Executive, 8(2), 45–58.Google Scholar
  28. Ramirez, R. (1999). Value Co-Production: Intellectual Origins and Implications for Practice and Research. Strategic Management Journal, 20(1), 49–65.CrossRefGoogle Scholar
  29. Ranganathan, C. and Balaji, S. (2007). Critical Capabilities for Offshore Outsourcing of Information Systems. MIS Quarterly Executive, 6(3), 147–164.Google Scholar
  30. Rigoni, E., Lunardi, G., Brodbeck, A. and Maçada, A. (2006). Validation of Quantitative Instruments in Information Systems Research: A Study of Strategic Alignment Maturity. Business Association of Latin American Studies (BALAS), http://balas.org/
  31. Simhan, R. (2002). An Inside View of Outsourcing. Business Line online edition. http://www.thehindubusinessline.com/ew/2002/10/30/stories/2002103000020100.htm. Accessed 22 October 2005.
  32. Sledgianowski, D. (2004). Identification of Factors Affecting the Maturity of Business-IT Strategic Alignment. Ph.D. Dissertation, Stevens Institute of Technology, Hoboken.Google Scholar
  33. Spohrer, J., and Kwan, S.K. (2009). Service Science, Management, Engineering, and Design (SSMED): An Emerging Discipline – Outline and References. International Journal of Information Systems in the Service Sector, 1(3).CrossRefGoogle Scholar
  34. Spohrer, J., Anderson, L., Pass, N. and Ager, T. (2008). Service Science and Service-Dominant Logic. Otago Forum 2 – Academic Papers. http://www.commerce.otago.ac.nz/marketing/events/OtagoForum/Final%20forum%20papers/Otago%20Forum%20Paper%202_Spohrer.pdf. Accessed 10 October 2009.
  35. Vargo, S.L., and Lusch, R.F. (2004). Evolving to a New Dominant Logic for Marketing. Journal of Marketing, 68(1), 1–17.CrossRefGoogle Scholar
  36. Willcocks, L.P., and Kern, T. (1998). IT Outsourcing as Strategic Partnering: The Case of the UK Inland Revenue. European Journal of Information Systems, 7(2), 29–45.CrossRefGoogle Scholar
  37. Williamson, O.E. (1999). The Mechanisms of Governance. Oxford: Oxford University Press.Google Scholar
  38. Zeithaml, V., Parasuraman, A. and Berry, L. (1991). Refinement and Reassessment of the SERVQUAL Scale. Journal of Retailing, 67(4), 420–450.Google Scholar

Copyright information

© Springer US 2011

Authors and Affiliations

  • Jerry Luftman
    • 1
  • Carol V. Brown
    • 1
  • S. Balaji
    • 2
  1. 1.Howe School of Technology ManagementStevens Institute of TechnologyHobokenUSA
  2. 2.Bentley UniversityWalthamUSA

Personalised recommendations