IT GOVERNANCE

INTRODUCTION

IT has become critical to creating public value

 

Key to doing more with less Pervasive in all functions of government

Successful use of IT requires a combination of people, process, and technology



Technology is the least important of the three

A special approach is needed to manage the relationships between these elements



That approach is IT

governance

WHAT IS IT GOVERNANCE?

Integral part of

Enterprise Governance

ENTERPRISE GOVERNANCE

Evolves Has

Leadership Sets Strategic Vision Organizational Objectives Achieved Organizational Structure through Roles & Responsibilities Use Processes

GOAL

WHAT IS IT GOVERNANCE? (CONTD.)

A system to steer the IT function  Gets users involved in issues important to them  Avoids micromanagement of the IT function

IT governance addresses issues like:  Identifying technology needs  Prioritizing technology investments  Assigning accountability for results  Aligning IT and business  Creating and maintaining open communications

WHY IT GOVERNANCE ?

Accounts for the major portion of the budget Relegated as a separate entity by non-IT people because of its technicality. Reasons two fold :
Executors nt able to understand what IT does  It was not able to translate what they do into business stuffs


IT is so complex that governing it by clarity is very difficult.

BOTTOM LINE

IT Governance exists for a reason..

To enable the business processes to achieve its objectives according to the strategic vision

OBJECTIVES OF IT GOVERNANCE

Strategic Alignment : Align business with IT Value Delivery : Is value being created? Risk Management : Value created at what risk? Resource Management : Achieving value, controlling risks but at what cost? Performance Management : Measuring the value at an optimal cost

IT GOVERNANCE FRAMEWORK

Depending on size, business scope, IT maturity of an organization, either centralized, decentralized or federated models of responsibility for dealing with strategic IT matters suggested IT governance model or framework determined, then implemented

CRITICAL PILLARS OF ITG

Guess what are they?

CIOs must establish and deliver IT governance

FUNCTION OF BOARD-LEVEL OVERSIGHT COMMITTEE

To advise senior business and IT management in developing operating and strategic plans that take full advantage of existing and emerging technology. Review proposals for potential technology investments. Oversee major IT-related projects and technology architecture decisions Monitor the performance of IT throughout the corporation thus ensuring that IT makes a contribution toward the corporations business and strategic objectives.

ROLE IN CORPORATE GOVERNANCE

Corporate governance should drive and set ITG. ITG, in turn could influence strategic opportunities as outlined by the enterprise ITG then provide critical input to strategic plans. Thus corporate takes full advantage of the information from ITG which thus acts as a driver of corporate governance.

A MUST ADDRESSED QUESTIONS:

Does the firm have the appropriate IT to exploit intellectual assets? Does it have management practices to guard against technology obsolescence? Are processes in place to exploit discovery and execution of IT strategic opportunities? Are procedures in place to ensure against costly lawsuits? Are procedures in place to ensure against IT-based surprises to senior management?

EFFECTIVE ITG FRAMEWORK REQUIRES:

Effective decision-making and a strong focus on process IT project and systems portfolios that are aligned with business priorities An efficient cost effective IT department Strong decision making by high performing IT employees Satisfied customers Complete audit capabilities supporting each of these points

PITFALLS THAT WEAKENS ITG EFFORTS

Failure to monitor ongoing performance Insufficient links to individual performance Cultural Breakdowns