EXPLORING THE MISALIGNMENT FACTORS BETWEEN BUSINESS AND IT ON THE IMPLEMENTATION OF BALANCED SCORECARD: A CROSS-CASE ANALYSIS OF TWO STATE-OWNED TELECOMMUNICATION COMPANIES IN INDONESIA THESIS In partial fulfilment of the requirements for the Degree of Master of Science in Management from Institut Teknologi Bandung By HARDY SANTOSA SUNDORO Student ID: 29019029 (Master Program of Science in Management) INSTITUT TEKNOLOGI BANDUNG April 2021 i ABSTRACT EXPLORING THE MISALIGNMENT FACTORS BETWEEN BUSINESS AND IT ON THE IMPLEMENTATION OF BALANCED SCORECARD: A CROSS-CASE ANALYSIS OF TWO STATE-OWNED TELECOMMUNICATION COMPANIES IN INDONESIA By Hardy Santosa Sundoro NIM: 29019029 (Master of Science in Management) Many organisations around the world have faced misalignment in attaining the alignment between business and IT. The positive effect of alignment on overall company success has been focused on previous research. On the other hand, the misalignment in the implementation of a balanced scorecard was primarily unexplored. This study aimed at identifying and evaluating the factors that contribute to a misalignment of businesses and IT. The case study methodology is conducted in two state-owned telecommunication companies in Indonesia. The telecommunication industry’s selection as the case study is because of their nature closely related to technology development and implementation. Five semi- structured interviews, field notes and business records are used to produce the data, which have been thematically analysed and further follow by cross-case analysis to compare the thematic analysis result from each company. This study has resulted in 12 factors of misalignment between business and IT that can inhibit achieving alignment in implementing a balanced scorecard. The main findings showed that human factors, enterprise architecture, and IT project implementation factors could be three main source themes that can potentially contribute to misalignment. The findings may allow researchers to devise frameworks for how misalignments can be minimised to align business and IT better. This finding also useful in practice for companies that are seeking to achieve business-IT alignment by focusing on human factors, enterprise architecture factors, and IT project implementation factors. Keyword: Misalignment, Business-IT alignment, IT Strategy, Balanced Scorecard, State-Owned telecommunications company. ii ABSTRAK MENGEKSPLORASI FAKTOR-FAKTOR KETIDAKSELARASAN ANTARA BISNIS DAN IT DALAM PENERAPAN BALANCED SCORECARD: ANALISIS LINTAS KASUS DUA BUMN TELEKOMUNIKASI DI INDONESIA Oleh Hardy Santosa Sundoro NIM: 29019029 (Program Studi Magister Sains Manajemen) Banyak organisasi di seluruh dunia menghadapi ketidaksesuaian dalam mencapai keselarasan antara bisnis dan TI. Efek positif dari keselarasan pada kesuksesan perusahaan secara keseluruhan telah difokuskan pada penelitian sebelumnya. Di sisi lain, ketidaksesuaian dalam penerapan Balanced Scorecard sebagian besar belum tereksplorasi. Penelitian ini bertujuan untuk mengidentifikasi dan mengevaluasi faktor-faktor yang berkontribusi terhadap ketidaksesuaian bisnis dan TI. Metodologi studi kasus dilakukan di dua perusahaan telekomunikasi milik negara di Indonesia. Pemilihan industri telekomunikasi sebagai studi kasus karena sifatnya yang erat kaitannya dengan perkembangan dan penerapan teknologi. Lima wawancara semi terstruktur, catatan lapangan dan catatan bisnis digunakan untuk menghasilkan data yang telah dianalisis secara tematik dan dilanjutkan dengan analisis lintas kasus untuk membandingkan hasil analisis tematik dari masing- masing perusahaan. Penelitian ini menghasilkan 12 faktor misalignment antara bisnis dan IT yang dapat berkontribusi pada alignment dalam pencapaian implementasi balanced scorecard.