ITG&SS - Terminology Flashcards
Key IT Decisions
IT principles IT Architecture IT Infrastructure strategies Business Application needs IT Investment & prioritization
Governance Archetypes
Business Monarchy IT Monarchy Feudal Federal IT Duopoly Anarchy
IT Principles
High level statements about how IT is used
IT Architecture
Technical choices to guide to organization in satisfying business needs. A set of policies and rules
IT Infrastructure strategies
Strategies for the base foundation of budgeted-for IT Capability (technical & human)
Business application needs
Specifying the business need for purchased or develop IT application
IT Investment and prioritization
Decisions about how much and where to invest including project approval and justification techniques
IT Governance formal definition (Alan Calder & Steve Watkins, 2005)
The framework for leadership, organizational structures, business processes, standards and compliance, which ensures that the organization’s information systems support and enable the achievement of its strategies and objectives.
Course definition IT
Specifying the framework for decision rights and accountabilities to encourage desirable behavior in the use of IT
IT Governance is important because
It influences the benefits received from IT investments
Does IT Matter? (Carr, 2003)
IT has become a commododity, as a result this means that IT will no longer provide a sustainable competitive advantage.
IT has become a qualifier, it is no longer a differentiator
Business Monarchy
C-suite (including CIO) is responsible for all five major IT decision. IT executives may NOT act independently
IT Monarchy
CIO and IT executives make all five major IT decision types
Feudal
Business units make all major decision types
Federal
Decisions are made involving two different levels (e.g. BU leader + CxO). IT executives may be part of it. Not common
IT Duopoly
BU leader or CxO + IT executives make decisions
Anarchy
Not very common, not truly a governance form
Most common pattern for firms regarding governance Archetypes
Federal for input across all major decision types. Decision mostly comes from Duopoly/ Federal/ IT Monarchy
IT Governance three questions
What decisions must be made to ensure effective management and use of IT?
Who should make these decisions?
How will these decisions be made and monitored?
Strategic Alignment
The same strategic decisions/goals for IT as well as the Business
Factors dictating variations
- Strategic and performance goals
- Organizational structure
- Governance experience
- Size and diversity
- Industry and regional differences
Four aspect affecting 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 profit
Effective Governance Patterns
- For enterprises with lot of synergy. IT finely tuned to business, with strong trust.
- For enterprise with few synergies. Duopoly for app. needs, because less need to coordinate across BUs
- Very centralized. Used in firms with single BU or where profitability or cost control is big issue.
Governance pattern 1
Principles - Duopoly Architecture - IT Monarch. Infrastructure - IT Monarch. B. App. needs - Federal Investment & prioritization - Duopoly
Governance pattern 2
Principles - Duopoly Architecture - IT Monarch. Infrastructure - IT Monarch. B. App. needs - Duopoly Investment & prioritization - B. monarch.
Governance pattern 3
Principles - B. monarch. Architecture - B. monarch. Infrastructure - B. monarch. B. App. needs - Federal Investment & prioritization - B. monarch.
Governance Critical Success Factors
- Transparency
- simplicity
- aligned incentives
- education about IT governance.
Dealing with uncertainty (lenses)
- Environmental Dynamism
- Dynamic Capabilities
- Organizational resilience
Environmental Dynamism
Model by Ansoff and McDonnel, detailing five levels of turbulence. Stages are:
- Repetitive
- Expanding
- Changing
- Discontinuous
- Surprising
Repetitive turbulence level
Level 1
- National economic
- Familiar events
- Slower change than response
- Recurring future
Expanding turbulence level
Level 2
- Events are extrapolable
- Future is forecastable
Changing turbulence level
Level 3
- Regional technological
- Change comparable to response
- Predictable future
Discontinuous turbulence level
Level 4
- Global sociopolitical
- Disc./Novel events
- Faster change than response
- Unpredictably surprising future
Best model for each stage
First stage: Porter, five forces
Third Stage: Resource Based View
Fourth Stage: Dynamic Capabilities
Dynamic Capabilities
Enables company to create, deploy and protect intangible assets. Create resource combinations that are have value and are difficult to imitate. Source of sustainable advantage
Dynamic Capabilities foundations
Skills, processes, procedures, organizational structures, decision rules and disciplines that motivate sensing, seizing and transforming own capabilities