wk 11 - IT governance

Question 1

benefits of IT governance

Answer 1

Improved decision-making: IT governance helps ensure that decisions are based on the organization’s strategic goals, priorities, and values.

Reduced risk: IT governance provides a framework for identifying, assessing, and managing risks associated with IT resources and activities.
Improved performance: IT governance enables the organization to better manage its IT resources and investments, leading to improved performance and efficiency.

Increased transparency and accountability: IT governance provides a clear framework for decision-making and accountability, which helps build trust and confidence among stakeholders.

Poorly managed IT platforms can result in significant risks to the organization, including data breaches, downtime, regulatory noncompliance, and reputational damage. Effective governance helps mitigate these risks and ensures that the organization can operate in a secure and compliant manner.

Question 2

IT Governance (def)

Answer 2

a framework that provides a formal structure for organizations to align their IT strategy with their business objectives. It encompasses processes that ensure the effective and efficient use of IT to achieve organizational goals

IT governance is critical in today’s digital age, where organizations rely heavily on technology to support their operations, and where the risks associated with IT activities are increasingly complex and pervasive.

Question 3

challenges of IT Governance

Answer 3

Resistance to change: Some stakeholders may resist the changes required to implement IT governance, such as new policies and procedures.

Lack of resources: Implementing IT governance requires resources, such as time, money, and expertise, which may be in short supply.

Complexity: IT governance can be complex and difficult to implement, particularly in large, decentralized organizations.

Balancing innovation and risk: IT governance must balance the need for innovation and agility with the need to manage risks and ensure compliance

Question 4

value creation

Answer 4

The value creation is the result of how resources are combined (with the support of ICTs) to produce goods with specific properties that define their value when exchanged.

The effectiveness of the value creation process is determined 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

Question 5

IT Governance dimensions

Answer 5

Focus of IT governance (what to govern): refers to what IT-related activities and artifacts must be aligned with organizational strategy and objectives;

Scope of IT governance (who to govern): refers to which actors and stakeholders are held accountable for ensuring IT’s contribution to the organization;

Patterns of IT governance (how to govern): refers to what mechanisms are put in place to ensure “desirable” IT-related activities and outcomes.

Question 6

Focus of it governance

Answer 6

IT investment
IT-Business alignment
Value creation

Question 7

Scope of It Governance

Answer 7

Which actors and stakeholders are held accountable for ensuring IT’s contribution to the organization

The primary scope of functional IT governance is the IT function; the underlying assumption is relying on the specialized expertise of IT professionals

Varies depending on the size of the project: across departments, interorganisational, or global

Question 8

patterns of it governance

Answer 8

Structural arrangements

Formal processes ensuring
desirable access and use of IT in alignment with organizational needs

Relational mechanisms facilitating communication, coordination, and shared understanding between business and IT stakeholders

Question 9

structural agreement

Answer 9

Centralizing IT decision-making to create cross-unit synergies VS Decentralizing IT decision-making to create flexibility for local business units

Centralization involves a single entity or authority having control over the system. This can bring benefits such as clear decision-making, centralized security, and easier maintenance  It can also lead to issues such as lack of flexibility, susceptibility to system-wide failures, and potential for abuse of power

Decentralization involves a network of entities or authorities sharing control over the system. This can bring benefits such as increased resilience, greater transparency, and more innovation. However, it can also lead to issues such as complex governance, potential for interoperability problems, and increased security risks