Abstract

The Business and IT Co-evolution (BITC) is a growing concern for researchers and practitioners alike. Extant literature on implementation and management of BITC is still in infancy and lacks especially empirical guidelines. This paper makes two contributions to the study of BITC. First, we summarize and systematically organize 10 BITC principles from prior literature to guide management efforts. Second, we build a system dynamics model based on the 10 principles to apply these principles as a means to improve the BITC management. The model embraces the emergent behaviors driven by the interactions of business and IT, and guides the BITC governance shaped by the principles. The development of this model forms a necessary step towards suggesting guidance how to implement BITC in companies. The paper also shows the capability of a system dynamic method to capture some of the holistic behaviors that emerge from implementing the 10 principles.

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