Last Updated on 9. October 2025 by mgm-marketing
Welcome to the first part of our series ‘IT Strategy Meets Business Goals’. In four consecutive articles, we show how genuine cooperation between business, organisation and IT can work in companies – and how you can benefit from it.
For decades, ‘business-IT alignment’ has been the goal of modern IT strategies. The idea behind it is that IT should be closely aligned with the needs of the business in order to contribute to the company’s success. However, what sounds sensible on paper often fails in practice due to structural divisions, cultural differences and strategic short-sightedness.
The image of alignment suggests: business on one side, IT on the other – two separate worlds that need to be brought into harmony. But this dichotomy is long outdated. In an age where almost every business model is based on digital technologies, it is no longer enough to simply align IT and business. IT is no longer a ‘support function’ – it is a co-creator, enabler and, in many cases, even the driver of the business model itself.
CIOs and their colleagues in business are therefore faced with a new task: it is no longer about alignment, but about shared responsibility. It is about consistently thinking together about business strategy, technology architecture and value creation logic. And it is about an organisational model that makes this aspiration a reality in practice.
This new reality requires a radical rethink – away from a reactive understanding of service providers and towards genuine partnership on an equal footing. In this article, we show how companies can master this change – and why the term ‘business-IT co-creation’ now better describes what really matters.
From silo thinking to strategic co-creation
In many companies, the relationship between IT and specialist departments has developed historically – and is often characterised by functional separation. While the business defines strategic goals, IT is tasked with implementation. This division of labour follows a model based on efficiency and division of labour – which made perfect sense in stable markets.
But this model has now had its day. Digital transformation has profoundly changed business models, customer expectations and competitive landscapes. Innovation no longer occurs sequentially, but simultaneously. Products, services and processes are digitally permeated – and thus inextricably linked to IT. In many cases, the technological infrastructure itself is the differentiating factor in competition.
As a result, IT and business can no longer be managed separately in a meaningful way. Those who continue to think in silos risk inefficiency, misunderstandings and strategic misinvestments. The famous ‘translation’ between the business department and IT not only causes friction losses – it also hinders speed and prevents accountability.
That is why a new paradigm is needed: business-IT co-creation. Here, mixed teams of business experts, IT specialists, data analysts and UX designers work together on solutions – from the idea to implementation. Responsibility no longer lies with a single party, but is shared. Decisions are made where the expertise lies – regardless of the organisational chart.
This form of collaboration is not an end in itself. It enables:
- Faster development of new services
- Better alignment between business needs and technical solutions
- Greater innovation through interdisciplinary perspectives
- Greater identification with the result
However, getting there requires the courage to change: traditional role models must be broken down, control processes adapted and leadership concepts redefined. Only then can the space be created in which IT and business can truly shape things together – not as service provider and customer, but as equal co-actors in entrepreneurial value creation.
New terms, new thinking: alignment, integration, co-creation
When discussing the future of collaboration between IT and business, there is one critical point that cannot be ignored: the terms themselves. Language shapes thinking – and terms such as ‘alignment’, “integration” and ‘co-creation’ convey different role models, power relationships and scope for action.
Business-IT alignment: the classic idea
‘Alignment’ suggests that two entities must coordinate in order to move in the same direction. In practice, this often means that IT ‘aligns’ itself with the needs of the business – with an implicit hierarchy in which IT acts as an executor. This model can be useful when it comes to clearly defined requirements and stable environments. But in dynamic, complex markets, it is too slow, too reactive and too one-sided.
Business-IT integration: The next step
The term ‘integration’ removes the separation. IT is no longer seen merely as a support function, but as part of the business model. Technology and business functions are becoming more closely intertwined in terms of organisation, strategy and processes. Integration is a step forward – but it often remains structural, not cultural: although people are working more closely together, they often still follow the old logic.
Business-IT co-creation: The paradigm shift
‘Co-creation’ goes further. This is not about coordination or integration, but about joint design on an equal footing. Business and IT experts contribute their perspectives from the outset, work together iteratively and share responsibility for the result. The collaboration is not linear (first requirements, then implementation), but circular and adaptive – driven by customer needs, data and feedback loops.
Co-creation is not just a methodological principle (e.g. in agile teams), but an expression of a new strategic attitude: that innovation only arises where competencies are truly combined – and not just coordinated.
Further terms in this context
- Business-IT fusion/convergence: an even more radical way of thinking – the distinction between the business and IT sides becomes completely obsolete. Examples: Digital products (e.g. platform business models) where the technology itself is the business model.
- BizDevOps: Extension of DevOps to include business responsibility – as an organisational model for continuous co-creation.
- Digital Twin of the Organisation (DTO): Model-based digital representation of all business and IT components, including decision-making logic – as a bridge between strategy, operations and technology.
Conclusion
Depending on the degree of maturity and business model, different terms may be appropriate. But anyone striving for genuine digital value creation today needs more than just ‘alignment’. Business-IT co-creation is the term that not only describes collaboration – it also combines responsibility, speed and strategic effectiveness.
In the second part of the series, we will showcase successful models from practice and highlight the strategic guidelines for CIOs.
