This document discusses IT governance and provides an overview of key concepts. It defines IT governance as consisting of leadership, structures, and processes to ensure IT supports business strategies and objectives. The document outlines five areas of focus for IT governance: strategic alignment, value delivery, resource management, risk management, and performance measurement. It also discusses why IT governance is important, who benefits, common frameworks that can be used, as well as advantages and disadvantages.

1. IT GOVERNANCE
Presented by
1.Navneet Singh(2013165)
2.Nilay Kohalay(2013
3.Nimisha Agarwal(2013
4.Nisidh Lad(2013

2. contents
 What is information technology
 IT GOVERNANCE
 Why IT Governance
 Framework
 Who benefits from IT governance
 Areas of IT governance
 Rules and regulation
 Advantages and disadvantages
 Implications

3. What is Information Technology?
 It refers to creation, gathering, processing, storage
and delivery of the information and processes and
devices that make it possible.
 It processes raw data.
 It can package information in new form so that it is
easy to understand and attractive.
 It deals with the use of computers and computer
software to convert, store, protect, process, transmit,
and securely retrieve information.

4. IT Governance
 Consists
of the leadership, organizational structures and
processes that ensure that the enterprise’s information
technology sustains and extends the organization’s strategies
and objectives.
 Safety of the commonwealth, duty to our principals, and to each
other requires that we adhere, and be seen to adhere, to the
highest ethical standards of behavior.
 It can be classified as running the business of IT vs running the
technology by setting the rules and assuring that they are
followed.
 Ethical responsibility of the stakeholders.
• Principal – Business
• Commonwealth – People
• Each other - Reputation

5. Why IT governance?
• RACE
1)
2)
3)
4)
Responsibility
Accountability,
Communication
Empowerment

6. Why IT governance ?
 Direct impact on business performance
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Operational
Strategic
 Risk
 Regulatory Environment

7. Framework of IT governance

8. Who benefited from sustainable
and effective IT governance?
•
•
•
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What Executives get?
What mid level business manager get
what senior it manager get
What program /project and operation
manager get?
• What everyone gets

9. 
According to the IT Governance Institute, there are five areas of focus:
 Strategic alignment: Linking business and IT so they work well together.
 Value delivery: Making sure that the IT department does what’s necessary to
deliver the benefits promised at the beginning of a project or investment.
 Resource management: One way to manage resources more effectively is to
organize your staff more efficiently. This allows organizations to deploy
employees to various lines of business on a demand basis.
 Risk management: Instituting a formal risk framework that puts some rigor
around how IT measures, accepts and manages risk, as well as reporting on
what IT is managing in terms of risk.
 Performance
measures: Putting structure around measuring business
performance. One popular method involves instituting an IT Balanced Scorecard,
which examines where IT makes a contribution in terms of achieving business
goals.

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References that are useful guides to the implementation of information technology
governance are:
AS8015-2005 Australian Standard for Corporate Governance of Information and
Communication Technology.
ISO/IEC 38500:2008 Corporate governance of information technology, provides a framework
for effective governance of IT to assist those at the highest level of organizations to
understand and fulfill their legal, regulatory, and ethical obligations in respect of their
organizations’ use of IT.
COBIT (Control Objectives for Information and related Technology) world's leading IT
governance and control framework. COBIT provides a reference model of 34 IT processes
typically found in an organization.
ITIL (IT Infrastructure Library) is a high-level framework with information on how to achieve a
successful operational Service management of IT, developed and maintained by the United
Kingdom's Office of Government Commerce, in partnership with the IT Service Management
Forum.
ISO/IEC 27000-series - focus on Information Security
CMM - The Capability Maturity Model: focus on software engineering
TickIT - a quality-management certification program for software development
Non-IT specific frameworks of use include:
The Balanced Scorecard (BSC) - method to assess an organization’s performance in many
different areas.
Six Sigma - focus on quality assurance
TOGAF - The Open Group Architectural Framework - methodology to align business and IT,
resulting in useful projects and effective governance.

11. Advantages
 More synergies
 More standardisation
 More control over priorities
 Increased infrastructure
 Critical mass of skills
 Improved visibility into cost
 More responsive to diverse needs

12. Disadvantages
Business Unit Autonomy
 Typically higher cost
 Poor integration
 Less Standardisation
Enterprise Wide
 Less responsive to owners and business units
 No business unit ownership
 Not aligned to business
 Slower time-to-market

13. Learning and Implications
Learnings:
 Ongoing Operations
 Cost effective service Delivery
 Value creation and Capture
 Strategic Partnership
 Strategic Leadership
Implications:
 Calculating the cost effectiveness
 Benchmarking against the best peers
 Communicating the structures and changes throughout the
organization
 Quick Flow of data throughout the organization