Info from WC's Flashcards
Why is IT governance important?
It shapes the outcomes of IT investments.
Normally big investments, without necesarilly immediate superior financial results.
Helps find new ways of creating value -> needs to be managed.
What are the 2 most strategic IT decisions?
- IT Principles
- Investment and prioritization
* implies that the business side should be involved as well
- > For good governance performance, on these 2 IT duopolies are often used.
Which 5 factors influence the variations in governance patterns?
- Strategic and performance goals
- Organizational structure
- Governance experience
- Size and diversity
- Industry and regional differences
How can you determine good IT governance performance?
- Cost-effective use of IT
- Effective use of IT for asset utilization
- Effective use of IT for growth
- Effective use of IT for business flexibility
What is the only IT decision for which federal decision making gives good IT governance performance?
Business application needs
What is an effective IT governance pattern?
IT Principle:
IT Duopoly
IT architecture:
IT Monarchy
IT infrastructure:
IT Monarchy
Business Application needs:
Federal
IT Investment:
IT Duopoly
- Requires IT to know about business, and trust
How do top performers in terms of asset utilization govern?
IT duopoly to govern all 5 decisions.
They work together with all business units to see firm-wide opportunities
How do top performers in terms of profit govern?
Business monarchy on principles, architectures and investments.
The rest collaborative?
How do top performers in terms of growth govern?
Business monarchy defines IT principles
IT investments by feudal or business monarchy
What are 8 critical IT governance success factors?
- Transparency
- Actively designed
- Infrequently redesigned
- Education about IT governance
- Simplicity
- An exception-handling process
- Governance designed at multiple organizational levels
- Aligned incentives
What do you need to remember from the Adidas case?
- Sensing and seizing can be very vaguely described in the case. It can just be a sentence that says:
Sensing: “digital transformation is fundamentally changing the way our consumers behave and the way we work”
What are implications of the SOX-law on IT?
Management information systems need to have controls related to the financial reporting function.
Majority of auditors use COBIT for this.
What is COBIT?
Control Objectives for Information and related Technology (COBIT).
Audit/governance tool
- it is a set of generally accepted IT control objectives for day-to-day use.
- Focus is on internal control to ensure compliance with regulations.
- Latest version: COBIT5 -> looks at the governance of IT across the whole enterprise.
Big focus also on data governance
What is the difference between governance and management?
Governance is about who makes decisions and ensures that objectives are achieved.
Management entails the planning, building, running and monitoring activities in alignment with the direction set by the governance body to achieve the enterprise objectives.
When thinking about getting an ITO contract, what are cost associated with managing the 3rd party?
- You need internal personnel that manage the contract. That could be information and contract managers.
Let’s say for a project that requires 50FTE -> you need 2 FTE internally to manage the contract.
Might also include some external consultants.
