2.3 IT Alignment with Business Objectives (Doshi) Flashcards
IT processes should always align with:
Business requirement
What should be a prime consideration when formulating IT strategy?
Business objectives
What is the first step in reviewing an organization’s IT strategic plan?
Review/understand the business plan
When is information security effective?
When it’s in line with enterprise requirements
What should form the basis of security requirements?
Enterprise requirements
Why do IT and the business should be moving in the same direction?
IT plans should be aligned with an organization’s business plans to govern IT effectively
What must the enterprise consider when formulating the IT strategy?
(1) business objectives
(2) risks and benefits they can bring to the business
(3) cost of current IT and
(4) whether this provides sufficient value to the business.
In any given scenario, IT processes should be aligned
as per business requirement.
Close alignment is evident when there is a
clear mapping, linking or cascading of IT strategy to business strategy hence ensuring that IT supports business objectives.
In any given scenario, business processes and objectives should always be
driver for IT requirement. When formulating the IT strategy, the prime consideration should be business objectives.
In any given scenario, the very first step in reviewing an organization’s IT strategic plan is
to review/understand the business plan.
Information security to be effective should be
in line with enterprise requirements. Hence enterprise requirements should form the basis of security requirements
To govern IT effectively, IT and business should be moving
in the same direction, requiring that the IT plans should be aligned with an organization’s business plans.
In any given scenario, IT alignment with business objective can be best assured by
involvement of top management. Top management who are very well aware of business objectives can derive maximum benefit from information system by way of structure alignment.
When formulating the IT strategy, the enterprise must consider:
(1) business objectives
(2) risks and benefits they can bring to the business;
(3) cost of current IT and whether this provides sufficient value to the business
Corporate Governance is
(1) Ethical corporate behavior by directors or others charged with governance in the creation and presentation of value for all stakeholders
(2) The distribution of rights and responsibilities among different participants in the corporation, such as board, managers, shareholders and other stakeholders
(3) Establishment of rules to manage and report on business risks
IT Governance is
(1) Comprises the body of issues addressed in considering how IT is applied within the enterprise.
(2) Effective enterprise governance focuses on:
– Individual and group expertise
– Experience in specific areas
(3) Key element: alignment of business and IT
IT Governance PRIMARY concern
- IT delivers value to the business
2. IT risks are managed
In order for management to effectively monitor the compliance of processes and applications, which of the following would be the MOST ideal?
A. A central document repository
B. A knowledge management system
C. A dashboard
D. Benchmarking
C. A dashboard (?
IT governance implies a system where all stakeholders provide input into the decision making process that includes:
(1) Board
(2) Internal customers
(3) Finance
Best Practices for IT Governance
(1) Strategic alignment
(2) Value Delivery
(3) Resource Management
(4) Risk Management
(5) Performance Measurement
In accordance with the defined role of the IS auditor, the following aspects related to IT governance need to be assessed:
– Alignment of the IS function with the organization’s mission, vision, values, objectives and strategies
– Achievement of performance objectives established by the business (e.g., effectiveness and efficiency) by the IS function
– Legal, environmental, information quality, fiduciary, security, and privacy requirements
– The control environment of the organization
– The inherent risks within the IS environment
– IT investment/expenditure
The creation of an IT strategy committee is
an industry best practice
