3. IT Governance

Question 1

Previously, the IT department made their own decisions and had no say in other departments’ decisions, why is this not a proper way anymore?

Answer 1

Because nowadays, IT is involved everywhere. IT is a supporting function that is affecting all areas of a business and should therefore be able to make decisions or at least have an input in other areas as well.

Question 2

What is “IT governance”?

Answer 2

= Specifying the decision rights and accountability framework to encourage desirable behaviour in the use of IT.

Question 3

Five(5) IT decision areas in the context of IT governance:

Answer 3

1. IT principles
2. IT architecture
3. IT infrastructure
4. Business application needs
5. IT investment and prioritization

Question 4

Applications vs infrastructure

Answer 4

Infrastructure is the base commodities and services that must be in place for everyone at the company. Ex commodities like computers, printers, routers etc, and IT services that are stable over time such as databases, PC/LAN access.

Then the applications are either shared/standard applications like accounting, budgeting and HR management systems, OR local applications that are more fast-changing ex the claim processing, order system etc.

Question 5

Six (6) IT governance archetypes: (who makes the decisions?)

Answer 5

1. Business Monarchy - business executives (CxOs).
2. IT monarchy - IT executives.
3. Feudal - Business unit leaders/key process owners. Different subgroups ex areas of business (Europe, US…)
4. Federal - C-level executives/groups, may also include IT executives. Join tog. from different levels.
5. IT duopoly - IT executives + another group.
6. Anarchy - each individual users decides.

Question 6

Who makes the best IT and business decisions? Business, IT or joint?

Answer 6

For IT decisions, it is equally good if the IT people or joint decisions are made. For the business decisions, it is clearly best if they make joint decisions.

–> Business alone should not make decisions on their own!!

Question 7

How can we organize the decision making?

Answer 7

In committees! Ex the executive and senior mngmt committee making decisions about strategy and principles regarding business and IT.
Architecture committee that makes business-driven IT decisions regarding standards.
etc. SLIDE 21.

Question 8

What does the executive steering group?

Answer 8

They set/interpret business strategy and overall IS/IT principles. Establishing priorities and overall decisions regarding resources/investments etc. Also ensuring that strategic applications achieve their objectives etc.
- Very overarching decisions.

Question 9

What does the business IS strategy groups do?

Answer 9

Identify business needs and critical success factors (CSFs), IS implications in that business area etc. Coordinating IS activities and expenditure in that area. Appoint application managers. They do not run projects, this is a committee.

Question 10

What does the IT strategy groups do?

Answer 10

Interpret IT trends, ensuring resources to meet business priorities. Developing IT resources/services in line with IS plans and monitor performance. Managing the supply of tech en specialists.

Question 11

What does the Application management groups do?

Answer 11

Identify and specify needs, benefits, resources, costs of application to enable mngmt to evaluate investments and set priorities. Managing development of systems ensuring that resources are available in the project groups.

Question 12

What does the Services management groups do?

Answer 12

Translating business needs into tech requirements and resource implications. ensuring technical solutions ar tested and quality assured. Planning development of services/resources to meet evolving demand.

Question 13

What does the Technical management groups do?

Answer 13

Understanding tech development, formulating options and communicating implications. assessing capabilities of the tech. Planning and managing infrastructure. Solving tech issues with suppliers and ensure service groups are supported.

Question 14

Five (5) stages of organizational development and their respective challenge?

Answer 14

1. Services through networks. - challenge of leadership.
2. Services through Direction - challenge of autonomy.
3. S T Delegation. - challenge of control.
4. S T Coordination.. - challenge of bureaucracy.
5. S T Collaboration.

Question 15

What are the strategic focus in each of the 5 organizational types?

Answer 15

1. Network - speed and creativity.
2. Directive - structure and centralization.
3. Delegation - process and decentralization.
4. Coordination - control and harmonization.
5. Collaboration - partnership.

Question 16

Technology operating model (TOM)

Answer 16

It is a framework helping IT organizations to achieve overall IT strategy goals.

• WHAT should an organistion do? - corporate strategy and IT strategy.
• HOW will it achieve the goals - operating model and TOM.

Question 17

What can change the TOM?

Answer 17

Only significant external changes require a change in the TOM, such as changes in the corporate or IT strategy or introduction of disruptive tech.

Question 18

Companies going towards TOM becomes more digitally integrated, what does it mean for the comapny?

Answer 18

That they have more collaboration. Teams are organized around products instead of application/domains, which req knowledge from all parts of the business. Product teams are fully agile. Focus on minimizing redundancy and maximizing interoperability between teams.