IT Governance
FINAL EXAM
Dr. Yemer Hassan
Naga RaghuTej Vankamamidi
1. This course explains and records and interprets some important existing theories, models, and practices in the IT governance and strategic alignment domain. IT governance be defined and its relationship with corporate governance and IT management clarified; devoted to the concept of strategic alignment, a detailed set of IT governance structures, processes, and relational mechanisms is discussed that can be leveraged to implement IT governance in practice. In your own words, how IT governance explained and why do we need to study IT governance?
Identify two important IT governance processes and key elements of IT governance.
Answer: IT governance is a
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IT governance reflects broader corporate governance principles while focusing on the management and use of IT to achieve corporate performance goals. Because IT outcomes are often hard to measure, firms must assign responsibility for desired outcomes and assess how well they achieve them. IT governance shouldn’t be considered in isolation because IT is linked to other key enterprise assets (i.e. financial, human, intellectual property, physical and relationships). Thus, IT governance might share mechanisms (such as executive committees and budget processes) with other asset governance processes, thereby coordinating enterprise-wide decision making processes.
Every enterprise engages in IT decision making, but firms differ considerably in how thoughtfully they define accountability and how rigorously they formalize and communicate decision making processes. Without formal IT governance individual managers are left to resolve isolated issues as they arise. These individual actions can be at odds. For example, the CIO at a global transportation firm was instructed to cut the corporate IT budget. This CIO introduced a chargeback system to curtail demand for IT services. Unhappy with their new charges managers within each of the business units hired technical specialists to provide services at a price they were willing to pay. The new technical specialists did not show up in the corporate IT budget so it looked like the CIO had achieved his goal, but the impact of the
The purpose of this article is to illuminate the need for any organization to have its IT strategy and business strategy properly aligned. While many organizations view IT and business alignment as an event – it is actually an on-going process, or continuous journey. Therefore, the main problem is that many organizations of today still hold these two principles (business mission & IT strategy) as two separate entities. However, in the Information Age – collaboration is key to capturing and retaining market penetration. To not have alignment with the IT and business strategy together is not a matter of want it is a matter of survival. This report will expand upon the need for business and IT strategic alignment as well as examine what happens in lack of a comprehensive plan. This will be done by examining the Vermont Teddy Bear company prior to and after the arrival of Bob Stetzel, the Vice President of Information Technology. This document will view it findings and make recommendations on the immediate and future operations of the company.
In modern society, IT (information technology) governance plays an important role in business development. Therefore a good IT organization is which match all the business need and also performance well to get lead in the industry. This report will analyze four sections related to WestJet Airlines case. First of all, the five specific areas in IT governance will be considered. Second, AS8015 model for IT governance will be defined, and a strong example will be discussed. The third part is about risk identification and control for WestJet Airlines’ IT operations. The last section will discuss how Smith manage the transformation propose.
Architecture must be developed in order to oversee IT strategy to benefit the whole organizational enterprise. Centralizing IT strategy at the start of the new business strategies will be important to make sure IT and business are working together with common goals that deliver the most value. The following steps are to be completed within each department:
The major goal is to integrate Information Systems/Information Technology with the corporate strategy to use information for better governance and management. This has improved with the connectivity and networking and also the shrinking cost- performance ratios in technology. IT governance thus is a result of the complete merger of computer and communications technologies, like data processing and high advancement in networks, and integrated systems. (Bloomfield; et al, 2000) To this extent the software of the stand alone systems have to be converted to a single functional system for all requirements and the system involves the creation of a network with the following functionality:
The mini-case starts with “IT is a pain in the neck,” which is a wrong notion that most of the business managers have in an organization. The history of IT-business relationships in most of the organizations shows that there is a huge gap between both sides which is getting better over a period of time. Today, managers know the fact that it is the people, technology and information that realizes the value of a company and everytime IT cannot be blamed for everything. The days have gone when IT was looked at as the sole responsibility for a company’s growth or downfall. IT processes along with the
When the CEO launches two new strategic initiatives requiring integration across all business units, the organization – whose IT decisions have been largely delegated to its business units in proportion to their revenue generating capacity – now faces the dilemma of how to prioritize its IT projects in order to support the new strategic “enterprise” vision.
Information Technology (IT) is a foundation for conducting business today. It plays a critical role in increasing productivity of firms and entire nation. It is proven that firms who invested in IT have experienced continued growth in productivity and efficiency. Many companies' survival and even existence without use of IT is unimaginable. IT has become the largest component of capital investment for companies in the United States and many other countries.
Alignment of an enterprise’s goals with its IT1 and IS1 systems has been a challenge ever since IT became a business enabler. Proposing an IT alignment requires a thorough understanding of the business goals of the enterprise and the knowledge that alignment is an iterative process which requires constant measurement and honing (Chan, 2002). Enterprises often face the problem of balance of priorities between IT and Business objectives. This report deals with one such case that faced alignment and prioritization hardships resulting in an unclear approach to achieve a corporate strategy.
Oxford Industries was originally founded in 1942, from their inception to now, the company has undergone a huge transformation; migrating from domestic manufacturing roots towards a focus on designing, sourcing and marketing apparel products bearing prominent trademarks. Today Oxford Industries is an international apparel company that features a diverse portfolio of owned and licensed lifestyle brands, company-owned retail operations, and a collection of private label apparel businesses. About 60% of their revenue comes from their private label business, which on one side relieves the company of any marketing and distribution activity, but on the other subtracts control of the product marketing and distribution and leaves the company dependent on its customers.
The new process that was instituted to prioritize IT projects at Volkswagen of America is very well organized. It takes an IT project and looks at it from multiple aspects, from business to IT. It also allows for several departmental entities to play a more active role in tying in business objectives with stated benefits of the IT project. As stated in Applegate, “IT governance is the effort to devise an overarching and integrated approach, addressing broad themes such as operating performance, strategic control, risk management, and values alignment.” (Applegate, 403) In
In this part, I would analyze and demonstrate two key IT management frameworks (ITIL and COBITS) combine with what I have learned in this paper. The concept of IT Operations Management would be given associates to my personal view, and I would
Information Technology (IT): The hardware and software technologies a firm needs to achieve its business objectives (Kenneth C Laudon and Jane P Laudon., 2010).
In order to effectively implement security governance, the Corporate Governance Task Force (CGTF) recommends that organizations follow an established framework, such as the IDEAL framework from the Carnegie Mellon University Software Engineering Institute. This framework, which is described in the document “Information Security Governance: Call to Action,” defines the responsibilities of (1) the board of directors or trustees, (2) the senior organizational executive (i.e., CEO), (3) executive team members, (4) senior managers, and (5) all employees and users. This important document can be found at the Information Systems Audit and Control Association (ISACA) Web site at www.isaca.org/ContentManagement/ContentDisplay.cfm?ContentID=34997.
Information Technology (IT) budgeting has become a constant struggle for companies, both big and small. The speed at which technology becomes obsolete, management’s expectations for quick deployment of new technology, and a supplier’s change of their operating model to focus on “as-a-service” (Feldman, 2015) recurring revenue, greatly affect how IT departments approach their budget these days. Other factors such as; lack of company vision or one’s inability to see how their IT department fits into the corporation’s goals and expectations are all huge pitfalls for the IT manager. The inability for IT and finance divisions to
Frenzel (2004) claimed that to be successful, a firm’s IT management team must take action on the following critical areas: business management issues; strategic and competitive issues; planning and implementation concerns; and operational items. If for any reason, the organisation experiences difficulties in the above areas, the manager will need to set goals and objectives to overcome and prevent these issues.