Course review Flashcards
What are the 5 archetyes of the IT governance arrangement matrix
Business Monarchy
IT monarchy
Feudal
Federal
Duopoly
Anarchy
What are the 5 decisions in the Governance Arrangement Matrix?
IT principles
IT architecture
IT infrastructure strategies
Business Application needs
IT investment
Explain IT principles
IT principles: Clarifying the business role of IT
IT architecture
IT architecture: Defining integration and standardization
IT infrastructure strategies
IT infrastructure strategies: Determining shared and enabling services (by hardware, software, networks, facilities)
Business application needs
Business application needs: Specifying the business need for purchased or internally developed IT applications
IT investment and prioritization
IT investment and prioritization: Choosing which initiatives to fund and how much to spend
Business Monarchy
A group of business executives or individual executives (CxOs).
Includes committees of senior business executives (may include CIO).
Excludes IT executives acting independently.
IT monarchy
Individuals or groups of IT executives
Feudal
Business unit leaders, key process owners or their delegates
Federal
C-level executives and business groups (e.g., business units or processes)
May also include IT executives as additional participants.
IT duopoly
IT executives and one other group (e.g., CxO, business unit or process leaders)
Anarchy
Each individual user
How do leaders on Asset Utilization govern IT?
IT duopoly governance for all five IT decisions
How do leaders on profit govern IT?
Centralized IT governance approach with IT-savvy business leaders (e.g. business monarchies) making the IT decisions on principles, architecture and investments.
How do leaders on growth govern IT?
- A business monarchy typically defines the IT principles, attempting to balance operational unit and firm-wide goals.
- IT investments are typically governed by either feudal or a business monarchy
What are dynamic capabilities
- Dynamic capabilities (Teece, 2007) enable companies to create, deploy and protect the intangible assets that support the superior long-term business performance.
- The foundations of these capabilities consist in skills, processes, procedures, organizational structures, decision rules and distinct disciplines that motivate and promote the detection (sensing) and capture (seizing) opportunities in order to reconfigure (transforming) their capabilities.
- Dynamic capabilities consist of creating resource combinations that create value and are difficult to imitate, including an effective coordination of interorganizational relationships on a global basis that is able to provide competitive advantages to the company.
- Dynamic capabilities are conceived as a source of sustainable advantage in Schumpeterian regimes of rapid change (Griffith and Harvey 2001).
From linear to platform business model
What are the 3 TCT dimensions?
Asset specificity: Degree to which the assets used to conduct an activity can be redeployed to alternative uses and by alternative users without sacrifice of productive value
Uncertainty:Environmental uncertainty: uncertainty with respect to technology, demand, local factor supply conditions, inflation, and the like. Behavioral uncertainty: strategic non-disclosure, disguise or distortion of information.
Frequency: The level of recurrence of the activities needed by the firm for the transaction
RACI
R (Responsible, NL: Verantwoordelijk): Degene die verantwoordelijk is voor de uitvoering. Verantwoording wordt afgelegd aan de persoon die accountable is.
A (Accountable, NL: Eindverantwoordelijk): Degene die (eind)verantwoordelijk, bevoegd is en goedkeuring geeft aan het resultaat. Als het erom gaat, moet hij/zij het eindoordeel kunnen vellen, vetorecht hebben. Er is slechts één persoon Accountable.
C (Consulted, NL: Geraadpleegd): Deze persoon geeft (mede) richting aan het resultaat, hij/zij wordt voorafgaand aan beslissingen of acties (verplicht) geraadpleegd. Dit is tweerichtingscommunicatie. Als RACI gebruikt wordt, is C gelijk aan S
I (Informed, NL: Geïnformeerd): Iemand die geïnformeerd wordt over de beslissingen, over de voortgang, bereikte resultaten enz. Dit is eenrichtingscommunicatie.
Typical Contract Structures for ITO Partnerships
• Strategic level
- Define the overall issues: such as objectives; IT services; contract periods; exclusiveness; price and change (payment term and rate structure); liabilities, damages, and jurisdiction; (Framework Agreement)
- Transfer including IT Dept staff, assets, service contracts (Transfer Agreement)
Tactic level
• Project and service elements: milestones, conditions, resources allocated • Secondment: rate per hours
Operational level
• The levels at which these services are to be delivered and the variations allowed, specifications
Draw the balanced scorecard
