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IT Governance

IT Governance. CIS 9002 Kannan Mohan Department of CIS Zicklin School of Business, Baruch College. Learning Goals. What is IT governance? Why is this important? How does it affect the IT department? What is the role of the CIO in shaping IT governance?

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IT Governance

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  1. IT Governance CIS 9002 Kannan Mohan Department of CIS Zicklin School of Business, Baruch College

  2. Learning Goals • What is IT governance? • Why is this important? • How does it affect the IT department? • What is the role of the CIO in shaping IT governance? • How does IT governance change when IT is outsourced?

  3. IT Governance

  4. What is IT governance? • Decision rights • Accountability • Structure for setting up objectives • Monitoring to ensure objectives are achieved • What, who, and how about decisions • Aligning IT spending with company’s strategy (Weill and Ross, 2004)

  5. What Decisions? • IT principles – business role • IT architecture – integration and standardization • IT infrastructure – capabilities • Business application needs - rationale • IT investment and prioritization (Weill and Ross, 2004)

  6. Who makes decisions? Governance Archetypes • Business monarchy • IT monarchy • Feudal • Federal • IT duopoly • Anarchy (Weill and Ross, 2004)

  7. Categories of Governance Mechanisms • Decision-making structures • Various governance archetypes • Alignment processes • IT investment process • Formal communications • Transparency of decision-making process

  8. IT Governance Focus Areas • Strategic alignment • Value delivery • Resource management • Risk management • Performance measurement (ITGI - COBIT, 2007)

  9. IT Investment Decisions • How do organizations prioritize IT investments? • Who decides what gets funded? • Who owns the process? And who facilitates its implementation? • Who is accountable when things go wrong? • Local vs. Global objectives? • Transparency of process and consequences

  10. IT Governance Posture • How do you balance global and local objectives? (Sambamurthy and Zmud, 2012)

  11. Role of Board of Directors • Reality? • Lack of IT expertise • Limited discussions on IT-related issues • After the fact updates • Responsibilities? IT risks threatening – • Business continuity • Regulatory compliance • Competitive success (Sambamurthy and Zmud, 2012)

  12. IT Asset Portfolio (Weill and Aral, 2004)

  13. Changes with IT Outsourcing • Accountability without control • Contractual vs. relational governance • Formal vs. informal? • Need for flexibility • Changes in the role of the IT organization • Service delivery to relationship management

  14. The Ambidexterity Pendulum

  15. Learning Goals • What is IT governance? • Why is this important? • How does it affect the IT department? • What is the role of the CIO in shaping IT governance? • How does IT governance change when IT is outsourced?

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