KING FAISAL UNIVERSITY SUMMER COURSE2018/2019 SCHOOL OF BUSNESS INTEGRATED ENTERPRISE

1. GOVERNANCE
KING FAISAL UNIVERSITY
SUMMER COURSE 2018/2019
SCHOOL OF BUSINESS -INTEGRATED ENTERPRISE
INSTRUCTOR: DR. ABDELNASSER ABDELAAL
DONE BY :
NOUF ALRAJEH 216006315
BSMAH AL-SAHLEE 216004072

2. DEFINITION
 governance :involves the system by which an organization is controlled and operates, and
the mechanisms by which it, and its people, are held to account
 Corporate governance: generally refers to the set of rule based
processes of laws, policies, and accountability that governs the relationship
between the investor (stockholder of a company) and the investee
(management).

3. ROLE GOVERNANCE IN ERP SYSTEM IMPLEMENTATION
IT Governance: IT governance refer to how those in
authority in an organization will consider and
employ Information Technology. it consists of the
leadership and organisational structures and
processes
Project Governance: Project risks and critical
success factors for implementation of ERP
systems. These include: definition of scope and
goals , project methodology , project control
realistic schedule clear roles and responsibilities,
integration and testing.
purpose of IT governance is to ensure IT alignment
with organisational goals; that IT ensures
competitive advantage; that resources are used
responsibly and that IT-related risks are properly
managed.
Project governance will ensure that these factors,
together with other factors identified in the
Governance Matrix at the project governance, are
planned for, implemented, controlled and
monitored.
Governance is about providing strategic
direction, planning and controlling projects and
people, and is delegated to project leaders
(project governance), those responsible for IT
(IT governance).

4. GOVERNANCE WITH SOFTWARE AS A SERVICE
 SaaS governance practiced in a holistic context is a means to be a
better business partner and to move nearer to the seemingly
impossible goal of aligning IT with the business.
 involves much more than a shiny new management application
 enhanced business processes:
1.highly customize their application to meet the needs of an individual client
2.minimizing influences to business processes
3.cost savings from ongoing IT operations
4.reduced time to market for enhancements
5.providing the IT team with increased bandwidth to put financial and other
resources to work on more innovative projects

5. GOVERNANCE WITH SOFTWARE AS A SERVICE
 How to Craft a SaaS Governance Policy
Step 1: Getting Started: Gather information on any policies you may have in place – start with sector
heads and move through appropriate teams consequently
Step 2: Compiling Best Practices: Each industry is altered, and of course every company has it’s own
strong point and weaknesses. However, here are a couple of general areas you might want to make
certain your policy
addresses :functionality, Security , Integration , Does the SaaS vendor have a disaster
recovery plan in place?
Step 3: Draft it Up: Compile the best of the best policies. Make sure you have addressed your
business’s greatest concerns, As you appraisal the document you have drafted
Step 4: Executive Buy-in: Everyone has a boss, so the higher you can get this approval, the better.
Step 5: Wrapping Up: Ask around , Make sure the policy addresses aspects of SaaS that are important
to your business, Keep it straightforward ,Get the big boss on board

6. GOVERNANCE FAILURE
 Enron
was a Huston-based energy company. it became one of the 10 largest companies in the USA. In
the following months, more and more evidence emerged about the weaknesses and fraudulent
activity of corporate governance.
 Failure was:Enron’s board waived conflict of interest rules to let chief financial officer, to create
private partnerships to do business with the firm. These partnerships seem to have hidden debts
and liabilities that would have had a significant impact on Enron’s reported profits. Then, Enron’s
collapse raises the issue of how to reinforce the directors’ capability and will to challenge
questionable dealings through corporate managers.
 Several corporate governance problems:
1-unlimited power in the hand of the chief executive is an clear problem, and is one that
characterized Enron’s management.
2-there were numerous diagrams of unethical activity within the Enron organization that
continued to come to light long after its collapse.

7. GOVERNANCE FAILURE
 Parmalat :Financier, the Italian dairy and food giant, is fast joining Enron and WorldCom as a
household name for corporate scandal.
 Parmalat was typical of this form of corporate governance. This is with controlling Tanzi
shareholders channelling corporate resources illegally to themselves.
corporate governance disasters which led to the Parmalat's crunch:
1. Firstly, one of the non-executive directors in Parmalat was not independent as he had been
working in Parmalat as a senior manager.
2. Secondly, the chairman and chief executive position were not divided as was suggested by
corporate
governance codes of practice in Parmalat Financiered.
3. Thirdly,the Preda corporate governance code in Italy specified that where a group of
shareholders controls a company, it is even more important for some directors to be free from
the controlling shareholders.

8. CORPORATE GOVERNANCE SUCCESS
 Abu Dhabi Commercial Bank (ADCB) is a financial institution operating in the United Arab
Emirates (UAE),Jersey,and India.it is the third largest bank in the UAE in terms of total assets.
 Some Key Challenges :
Roles: The lines between board and management were unclear in some areas due to existence of an
executive committee that included representatives from both.
Procedure: Board negotiations tend to include areas of day-to-day management issues.
Abu Dhabi Commercial Bank has impacted in the four-to-five years after embarking on the corporate
governance changes:
1-ADCB’s governance reputation in the market has improved significantly :The added disclosures
are widely considered best in class among peers and helped enhanced the bank’s profile and image.
2-The board has demonstrated a higher level of effectiveness :Board has enhanced oversight and
provides strategic stewardship to the bank.

9. PUBLISH IN SLIDESHARE
 https://www.slideshare.net/BesssoEse/governance-151157237

10. REFERENCES
 https://documentcloud.adobe.com/link/track?uri=urn%3Aaaid%3Ascds%3AU
S%3Ad6e4327d-2fb7-47a3-8950-82a56791b595
 http://progresomicrofinanzas.org/wp-content/uploads/2015/09/june-2015-
cg_success_stories_mena-ifc1.pdf
 https://searchcio.techtarget.com/opinion/SaaS-governance-breeds-better-
business-relationships-for-CIOs