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Strategic IT Governance
Mahetab khan
What is Strategic IT Governance?
IT governance is the formal process of defining the
strategy of the IT organization and o...
Why is IT Governance
important?
Compliance with regulations
Competitive advantage
Support of enterprise goals
Growth a...
 IT Strategic Alignment, such as formalized business objectives, up
to date IT strategy, linkage between business objecti...
Core Competencies for Effective IT Governance
Enterprise
Architecture
Mgmt
Relationship
Mgmt
IT Strategy
Mgmt
Financial
Mg...
Benefits of IT Governance
 Strengthens the relationship between the organization and IT;
Helps ensure limited IT resource...
Strategic IT Governance Framework
 Capability Maturity Modeling
Integration (CMMI)- For Process
Improvement
 Information Technology
Infrastructure Library...
Who is involved?
Team leaders
Managers
Executives
Board of Directors
Stakeholders
Challenges and Concerns
Relative to It governance
Needs, Issues & Challenges
Procedure, Audits, Metrics
Control
Strategic
Tactical
Operations
Demand
IT and
Business
Resourc...
Aligning IT and Business Strategy
Corporate Mission – Business Goals – IT Strategy
Requires involvement from many levels...
Ensuring Value and Effectiveness
IT issues are the least understood, despite increasing
reliance placed on IT.
Initiate ...
IT Governance
Consists of leadership, organizational structures and
processes that safeguard information.
Security over ...
Measuring IT Governance
Performance
Measuring IT performance is a key concern as it
demonstrates the effectiveness and ad...
IT Governance Performance
Management Approaches
IT Balanced Scorecard
One of the most effective means to aid an
organization in achieving IT and business
alignment.
Pro...
Thank you
It governance
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It governance

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Strategic IT governance for organization and its benefits

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It governance

  1. 1. Strategic IT Governance Mahetab khan
  2. 2. What is Strategic IT Governance? IT governance is the formal process of defining the strategy of the IT organization and overseeing its execution to achieve the goals of the enterprise. Aligned/synchronized with the enterprise strategy, including other key asset strategies Decision rights framework & mechanisms Vision, goals/priorities, measures; value prop & service portfolio; resource approaches & commitments; change management plans Translation into aligned, tactical, operational plans; closed-loop monitoring & control; accountability; regulatory compliance
  3. 3. Why is IT Governance important? Compliance with regulations Competitive advantage Support of enterprise goals Growth and innovation Increase in intangible assets Reduction of risk
  4. 4.  IT Strategic Alignment, such as formalized business objectives, up to date IT strategy, linkage between business objectives and IT initiatives;  Value Delivery: IT tactical plans, clear benefits for each level of the organization: infra-structure (systems uptime), applications (degree of automation), operational (productivity), financial (income);  Risk Management: defined responsibilities for risk management, risk analysis methodology, defined strategies for addressing risks, continuous monitoring of threats, occurrence and impact;  Resource Management: sourcing strategies, human management practices, user manuals, segregation of duties, time reporting, infra-structure life cycle management, acceptable usage policies.  Performance Measurement: relevant and measurable metrics, continuous monitoring and reporting, follow-up policies, root cause analysis and problem management, benchmarking against industry practices and proven standards or frameworks. Elements of IT Governance
  5. 5. Core Competencies for Effective IT Governance Enterprise Architecture Mgmt Relationship Mgmt IT Strategy Mgmt Financial Mgmt Supply / Demand Mgmt Portfolio Mgmt IT Operating Model • Align operational and strategic IT investments to business strategies & objectives. • Establish policies, standards, models and processes for managing IT as an enterprise asset • Lifecycle management of infrastructure, applications and services • Understand the drivers of IT costs to allocate appropriate costs to the consumers of IT services. • Establish effective, collaborative relationships with business stakeholders and suppliers. • Balance the demand for IT services with available resources to meet immediate and strategic goals.
  6. 6. Benefits of IT Governance  Strengthens the relationship between the organization and IT; Helps ensure limited IT resources are focused on the right strategic and tactical activities at the right time  Synergies with Enterprise Risk Management (ERM) and other risk management activities; Helps ensure the appropriate IT risk management processes and activities are in place and operating effectively  Enhanced visibility into the IT Function’s ability to achieve its both tactical and strategic objectives; Key Performance Indicators (KPIs) for day-to-day activities and longer-term/strategic initiatives  Improved adaptability of the IT Function to organizational and IT environment changes; Formality of Governance structure, processes and activities enables more efficient and effective response to change
  7. 7. Strategic IT Governance Framework
  8. 8.  Capability Maturity Modeling Integration (CMMI)- For Process Improvement  Information Technology Infrastructure Library (ITIL)- For IT Service Management.  Six Sigma- For Process Improvement especially security processes.  Control Objectives for Information and Related Technology (COBIT) - For information technology (IT) management and IT governance  The Balanced Scorecard (BSC) - method to assess an organization’s performance in different areas. Frameworks for IT Governance
  9. 9. Who is involved? Team leaders Managers Executives Board of Directors Stakeholders
  10. 10. Challenges and Concerns Relative to It governance
  11. 11. Needs, Issues & Challenges Procedure, Audits, Metrics Control Strategic Tactical Operations Demand IT and Business Resources Supply Capital, Capacity, Priorities Planning Alignment Flexibility EfficiencyQuality Lack of Business aligned strategyLack of Business aligned strategy Reduce costs across businessReduce costs across businessIneffective project ManagementIneffective project Management Deployment Complexity through lack of standard & legacy Deployment Complexity through lack of standard & legacy No Audit TrailsNo Audit Trails Management of Service ChangesManagement of Service Changes Must reduce IT costs by 30%Must reduce IT costs by 30% Lack of IT resource transparencyLack of IT resource transparency Missed targets due to lack of steering controlMissed targets due to lack of steering control Deployment Complexity in number of project Deployment Complexity in number of project Cannot aggregate need and distribute ROI Cannot aggregate need and distribute ROI No means of governing outsourced contractsNo means of governing outsourced contracts No means of capturing demandsNo means of capturing demands No means of prioritization of business need No means of prioritization of business need No means of reporting SLANo means of reporting SLA Making new outsourcing decisions Making new outsourcing decisions
  12. 12. Aligning IT and Business Strategy Corporate Mission – Business Goals – IT Strategy Requires involvement from many levels and activities within the enterprise. Lack of alignment leads to adverse business issues. Strong IT Governance contributes toward proper alignment.
  13. 13. Ensuring Value and Effectiveness IT issues are the least understood, despite increasing reliance placed on IT. Initiate IT governance structures with the right level of executive involvement. Board of Director’s require essential IT related skills
  14. 14. IT Governance Consists of leadership, organizational structures and processes that safeguard information. Security over information assets. Benefits of IT Governance. IT is a top-down process.
  15. 15. Measuring IT Governance Performance Measuring IT performance is a key concern as it demonstrates the effectiveness and added business value of IT. Commonly seen as the IT “Black Hole” – costs continually rise without clear evidence of value derived from the IT function. Traditional performance measurement methods require monetary values which are hard to apply to IT systems.
  16. 16. IT Governance Performance Management Approaches
  17. 17. IT Balanced Scorecard One of the most effective means to aid an organization in achieving IT and business alignment. Provides a systematic translation of the IT strategy into tangible success factors and metrics. Gives a balanced view of the value added by IT to the business. Calculating the value of IT investments is a business issue for which business managers are ultimately responsible for.
  18. 18. Thank you

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