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Enhancing IT Governance Strategies for Optimal Business Performance

Explore the significance of IT governance in shaping organizational success, leadership roles, decision-making structures, and risk management. Understand the impact on IT departments and CIO responsibilities, especially in outsourced IT environments.

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Enhancing IT Governance Strategies for Optimal Business Performance

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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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