Week 10 - IT Governance Flashcards
1
Q
What is IT GOVERNANCE
A
- Decision Rights and Accountability Framework deployed through a Mix of Structural, Processual and Relational Mechanisms and Used to Ensure Alignment of IT-related Activities with the Orgs’ Strategy and Objectives
2
Q
Explain how IT Governance MANAGES RISK and is EFFECTIVE
A
- establishes Framework for IT-related Decision Making, and for Managing Risks Associated with IT Activities, e.g. Security, Privacy and Compliance
- Effective IT Governance Helps Org’s Optimise their Investments in IT, Improve Performance and Reduce Risks Associated with IT Activities.
- is Critical Today, where Orgs Rely Heavily on Tech to Support them
3
Q
State 4 BENEFITS of IT GOVERNANCE
A
- Improved Decision-Making
- Reduced Risk
- Improved Performance
- Increased Transparency and Accountability
4
Q
Explain the Benefit of IT Governance - IMPROVED DECISION MAKING
A
- helps Ensure Decisions are Based on the Orgs’ Strategic Goals, Priorities and Values
5
Q
Explain the Benefit of IT Governance - IMPROVED PERFORMANCE
A
- Enables Org to Better Manage its IT Resources and Investments -> Leads to Improved Performance and Efficiency
6
Q
Explain the Benefit of IT Governance - REDUCED RISK
A
- Provides Framework for Identifying, Assessing and Managing Risks Associated with IT Resources and Activities
7
Q
Explain the Benefit of IT Governance - INCREASED TRANSPARANCY and ACCOUNTABILITY
A
- Provides Clear Framework for Decision Making and Accountability -> Helps Build Trust and Confidence Among Stakeholders
8
Q
State 4 CHALLENGES of IT GOVERNANCE
A
- Resistance to Change
- Lack of Resources
- Complexity
- Balancing Innovation and Risk
9
Q
Explain the Challenge of IT Governance - RESISTANCE To CHANGE
A
- some Stakeholders May Resist the Changes Required to Implement IT Governance, such as new policies and producers
10
Q
Explain the Challenge of IT Governance - LACK of RESOURCES
A
- Implementing IT Governance Requires Resources, such as time, money and expertise, which May be in Short Supply
11
Q
Explain the Challenge of IT Governance - COMPLEXITY
A
- IT Governance can be Complex and Difficult to Implement, particularly in Large, Decentralised Orgs
12
Q
Explain the Challenge of IT Governance - BALANCING INNOVATION and RISK
A
- IT Governance Must Balance the Need for Innovation and Agility with the Need to Manage Risks and Ensure Compliance
13
Q
What is the Value Creation Process
A
- Processes/Activities that Lead to the Production of a Marketable Good
- the Result of How Resources are Combined (with support of ict’s) to Produce Goods with Specific Properties that Define their Value when Exchanged
14
Q
Explain How the Effectiveness of the Value Creation Process is Determined
A
- by the Efficiency of the Processes that are Used to Finalise the Production of Goods that can Be Exchanged
- the Exchange of the Ownership of the Good is the Ultimate Object of Economic Transactions
15
Q
State the 5 Stages of the Value Creation Process
A
- Encoding
- Computation
- Aggregation
- Inscription in Physical Object
- Use
16
Q
Explain how the Aggregation Process is a Contingent Process
A
- is a Contingent Process which Aggregates and Bind Resources Inscribing Them into a “Physical Object” for the Temporal Moment in Time
- the Process is Dynamic, Modular and Reversible
- the Business Results as a Complex Web of Algorithms which Interact in the Process that Determines What will be Inscribed into the Physical Object and How it will be Inscribed
17
Q
Explain Value Creation being BEYOND LINEARITY
A
- Value Creation Moves from a Linear Sequences of Activities (value chain) Towards an Intricated Web of Algorithmic Relationships and Interdependences
- the Value Creation Process around which this Web Al Algorithmic Relationships and Interdependences Structures Cannot be Managed Following the Linear Relationships Described the Value Chain Model
18
Q
State the 3 IT-Governance Dimensions
A
- FOCUS of IT GOVERNANCE (what to govern)
- SCOPE of IT GOVERNANCE (who to govern)
- PATTERNS of IT GOVERNANCE (how to govern)
19
Q
Explain the IT-Governance Dimensions - FOCUS of IT GOVERNANCE (what to govern)
A
- Refers to What IT Related Activities and Artifacts Must be Aligned with Organisational Strategy and Objectives
20
Q
Explain the Challenge of IT Governance - SCOPE of IT GOVERNANCE (who to govern)
A
- Refers to Which Actors and Stakeholders are Held Accountable for Ensuring IT’s Contribution to the Organisation
- the Primary Scope of Functional IT Governance is the IT Function ; the Underlying Assumption is Relying on the Specialised Expertise of IT Professionals
21
Q
Explain the Challenge of IT Governance - PATTERNS of IT Governance (how to govern)
A
- Refers to What Mechanisms are Put in Place to Ensure “Desirable” IT-Related Activities and Outcomes
Implementation
1. Structural Arrangements
2. Formal Processes ensuring desirable access and Use of IT in alignment with Organisational Needs
3. Relational Mechanisms Facilitating Communication, Coordination and Shared Understanding between Business and IT Stakeholders
22
Q
What is Structural Arrangement in terms of Centralisation and Decentralisation
A
- Centralising IT Decision-Making to Create Cross-Unit Synergies
vs
Decentralising IT Decision-Making to Create Flexibility for Local Business Units
23
Q
Explain what CENTRALISATION Involves in terms of Structural Arrangement
A
- a Single Entity or Authority Having Control Over the System
- can Bring Benefits such as Clear Decision-Making, Centralised Security, and Easier Maintenance
- can Also Lead to Issues such as Lack of Flexibility, Susceptibility to System-Wide Failures, and Potential for Abuse of Power
24
Q
Explain what DECENTRALISATION Involves in terms of Structural Arrangement
A
- involves a Network of Entities or Authorities Sharing Control Over the System.
- can Bring Benefits e.g. Increased Resilience, Greater Transparency and More Innovation
- can also Lead to Issues e.g. Complex Governance, Potential for Interoperability Problems, and Increased Security Risks
25
Structural Arrangement - Explain what the Choice between Centralisation and Decentralisation in Digital Governance Depends on
- various Factors, e.g. Nature Of the System, the Goals of the Organisation and the Preferences of Stakeholders
-e.g. of Digital Systems with Centralised Approach : Banking Systems and Large Social Media Platforms
- with Decentralised Approach include Blockchain-Based Systems and Peer-to-Peer Sharing Networks
26
Explain Formal Process
- Following Formal Processes for How Business and IT Stakeholders Work Together and Make IT Investment Decisions
- Defining Producers and Standards Concerning Prioritisation, Funding, Acquisition, Deployment, Use and Retirement of Enterprise IT Assets
27
Explain Relational Mechanisms
- Business Leaders Participating in IT Project Control Activities and Acting as Co-Leaders to Ensure Business-IT alignment
- Seeking Recommendations and Advice from IT Function Leaders on Key Digital Trends
- Business Units Seeking Regular Interactions with IT Staff to Define Business Requirements, Facilitate Shared Learning with IT Leaders and Exercise Control
28
Explain ORCHESTRATION
- the Different Digital Innovations have a Trades Off
Platforms or ecosystems Generate Values which Might Not Complementary with AI, Data Analytics Value Propositions
- the Value Generating Propositions of Different Digital Technologies Have to be Balanced to Optimise the Company Value Proposition
- from a Managerial Viewpoint it's Extremely Important to Find the Right Configuration, balance, Among the Different Value Generation Processes Associated with the Different Digital Technologies
29
Value Creation - Not a Linear
- the Value Creation Outcome Isn't the Sum of the Values Created By the Individual Digital Technologies
