Lecture 8 Flashcards
What is Governance?
T governance determines how the IT function manages demand, delivers value, and protects against risk.
- Defines decisions
- Expectations
- Authority
- Performance
… regarding IT
Organisations that lack effective governance suffer from low performance, heightened risk exposure, and resource allocation
What is IT Governance decisions?
- Sourcing: Upgrade/re-evaluate
- Security and data management: data loss/breech
- IT cost management
- IT resources management
- IT capabilities
- IT assets
IT Governance: Either be Centralised/Decentralised, how?
Centralised
- Brings together the HW, SW + Staff
- “One Big Function” makes decisions together
- To promote control and efficacy
Decentralised
- Scatter capabilities and infrastructure across the business (departments + divisions)
- Meets the needs of local users through partnership and boosting their decisions in innovation
Centralised Benefits + Drawbacks
Positives +
- Consistent across organisations
- Not aligned to local business needs
- Economies of scale
Negatives -
- Slower support innovation
- Bargaining power of contracts
- Lack of control of IT costs
Decentralised Benefits + Drawbacks
Positives +
- Easy to customise IT needs + innovation
- Hard to maintain global standards and policies
- Improved local business IT-partnership
Negatives -
- Lower power of vendors
- Local control on overhead costs
- High acquisition costs
How to fund IT resources in a company?
- Chargeback
- Allocation
- Corporate Budget
What is the Chargeback in IT governance?
- Costs recovered by charging individuals/business Based on actual usage + cost
- **Charging departments for service **
- **Internal billing **to help IT and the business units communicate and improve cost-awareness
**Charge printer per use**
Benefits:
- IT paid by who uses it
- Provides detailed breakdown of who uses it
- Making more customer oriented
Drawbacks:
- Fine-grain monitoring needed
Importance of Governance
IT governance determines how the IT function manages demand, delivers value, and protects against risk.
What is Knowledge?
A mix of facts, information acquired through experience or **education **
List the Knowledge types
- Tacit knowledge – Knowledge that is hard to transfer to another person only by verbalising or written
- Explicit knowledge – Can be stored, collected and transferred, can be easily transmitted to others.
What is Intellectual Capital?
Captured knowledge that is valuable to the company that is used as a form of competitive advantage
What is Intellectual property?
Gaining legal ownership to one’s own creations (music, physical etc)
Intellectual Property types
- Patents - For invention
- Trademark - For brand identity
- Design - For product appearence
- Copyrights - Over literature
