Higher levels of IT-Business alignment often lead to what outcome for a firm?

Study for the Information Technology Applications 203C (ITA203C) FE Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare effectively for your exam!

Higher levels of IT-Business alignment are instrumental in enhancing a firm's operational efficiency. This alignment ensures that the IT strategy is closely integrated with the business objectives, which allows for streamlined processes, better resource allocation, and improved communication between IT and other business units. When IT initiatives are developed in conjunction with business goals, it leads to the implementation of technologies that directly support and facilitate business operations. This synergy minimizes redundancies, reduces costs associated with misaligned projects, and fosters innovation, ultimately leading to increased productivity and efficiency across the organization.

While the other options may seem relevant, they do not encapsulate the primary benefit of IT-Business alignment to the same extent. Reduced workplace stress can be a positive byproduct of efficiency, but it is not a guaranteed direct result. Lower technology costs can occur but are not inherent to all alignment strategies. Similarly, a more rigid structure could arise if alignment leads to strict adherence to processes that stifle flexibility, which is contrary to the adaptive nature desired in a competitive business environment. Thus, the primary outcome of increased operational efficiency effectively captures the substantial benefits derived from high levels of IT-Business alignment.

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