IT Governance (Week 10) Flashcards
What is IT Governance?
Framework ensuring IT activities align with organizational goals, encompassing processes, policies, and relationships for efficiency
Advantages of IT Governance
–> Improve decision making
(based on firms goals and values etc)
–> Reduced Risk
(provides framework to identify and manage risk)
–> Improved Performance (allows for better management of IT resources and investments)
–> Increased transparency and accountability
(provides a clear framework for decision-making and accountability)
Disadvantages of IT Governance
–> Resistance to change
–> Lack of resources
–> Complexity
(especially in decentralised organisations)
–> Balancing Innovation and Risk
Value Creation Process in a Digital Context:
–> Encoding
–> Computation
–> Aggregation
–> Inscription in physical object
–> Use
–> Feedback (back to encoding)
The Aggregation Process
A process that binds resources into a temporary “physical object” dynamically, with reversible, modular interactions guided by algorithms
IT Governance Dimensions
–> Focus of IT governance (what to govern)
–> Scope of IT governance (who to govern)
–> Patterns of IT governance (how to govern
What is the Focus of IT Governance?
–> IT Investment
–> IT Business Alignment
–> Value Creation
What is the Scope of IT Governance?
Which actors and stakeholders are held accountable for ensuring IT contribution to the organisation
What is Patterns of IT Governance?
–> Structural arrangements
–> Formal alignment with organisational needs
–> Relational mechanisms foster communication and coordination between business and IT
Structural Arrangement: Centralised
Single control for clarity but risks inflexibility, failures, and abuse of power
Structural Arrangement: Decentralised
Shared control enhances resilience, transparency, and innovation but may lead to governance complexity and security risks
What is Value Orchestration?
Balancing digital innovations’ trade-offs to optimise the company’s overall value proposition while taking into account the various ways they create value
