With the advent of digital technologies, the line-of-business (LOB) managers have a unique opportunity to innovate by developing LOB specific technology applications. While this is opportune for the LOBs, such myopic innovations often yield conflicts with the corporate IT strategy, creating a mis-alignment. Past literature argues that for IT innovations to create firm performance, they must attain a high degree of IT-business alignment. With a backdrop of growing prevalence of digital technologies, corporate compliance and security reaching highest levels of importance, this research investigates how firms encourage LOB-led innovations, while maintaining corporate IT-business alignment. Using data from four cases, the study provides early insights into LOB-led innovation process and three alignment types emanating from LOB-led innovations