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                             IT Governance with Digité Enterprise


Prabhas Sinha               IT Governance has never been so prominent until 21st century ushered in with scores of
Product Marketing Manager
Derek Scoble                companies undergoing litmus test of their financial reporting, subsequent introduction of
VP - IT Governance          Sarbanes-Oxley Act in 2002 and the Section 404 mandating them to uncover their intricate and
Digité Inc.                 deeply buried accounting practices and thereby Corporations padding up for a stricter
82 Pioneer Way
Mountain View, CA           governance code. The business case and need for IT Governance is convincing. Implementing
                            effective and efficient enterprise IT Governance is problematic, multidimensional, and resource
                            intensive. Trouble areas include culture, environment, geography, organizational control, cost,
                            and commitment to name just a few. Add in the time required to implement real change and the
                            systems to manage the transition and desired end state and we have quite a challenge.

                            So what is IT Governance? It is about visibility, accountability and making IT decisions, which works
                            in tandem with IT Management that is about implementing various IT decisions. IT Governance
                            keeps together the IT strategies and Business strategies and converts IT maxims into strategic
                            actions, which is critical for any CIO. This means that a business has to ensure compliance
                            enforcement and it has to percolate throughout the organization where actions taken by every
                            individual and group throughout an organization has to be consistent with the business goals. Real
                            governance recognizes solid initiative business cases fulfilling strategic plans to be built on approved
                            enterprise architectures using standard procurement processes. These initiatives support vendor
                            and contract management controls overlaying recognized system development lifecycles with
                            integrated project management and quality programs. These initiatives factor in skilled resource
                            management and the enterprise business cycle driven by understanding business processes and
                            organizational capacity. Underlying all the above is the auditing process that verifies that original
                            assumptions and execution are realized according to plan especially if regulatory compliance is an
                            issue. A robust communication mechanism must disseminate the compliance requirements, policies
                            and procedures, reporting parameters and retain the electronic audit trails. On the lines of Federal
                            Sentencing Guidelines (established by United States Sentencing Commission), corporate
                            governance initiatives have started embracing communication, empowerment, enforcement,
                            monitoring, policies and procedures to properly align, integrate, manage, and monitor the
                            governance.

                            Overall the emphasis is on the operational excellence of IT that should have impact on an
                            organization's Customers, Capital, Resources and Cycle Time. The 5 must-have benefits of IT
                            Governance are:

                            1.   Visibility into an integrated strategy portfolio across all IT investments.
                            2.   Financial metrics showing the return on IT investment i.e., costs that it has avoided or
                                 reduced and possible revenues it will attract.
                            3.   Strong Program management, reporting and audits exhibiting IT process improvements.
                            4.   Rigorous project execution, measurement, and early warnings of risks.
                            5.   Effective labor and non-labor resource management.

                            If enterprise IT Governance is ever to mean something more than high-level project abstractions
                            presented in executive dashboards we must recognize that true governance is built on structured
                            level components that make the results believable or not. These 5 elements of IT Governance
                            clearly put emphasis on the IT EXECUTION layer within any organization. “Running IT Like
                            Business” and “Business Alignment of IT” are two sides of the same coin. The best laid-out plans
                            flounder without well-executed implementation. Looking through the actual execution,
                            organizations will cut their IT cost and risks by coordinating their Software Development Life




       www.digite.com                                      1                               Copyright 2005 Digité, Inc. All rights reserved.
diginotes


                  Cycle processes with Project Management and aligning their strategies for operations,
                  collaboration and application delivery.

                  Digité Enterprise offers a unique combination of PPM, SDLC, and BPM with seamlessly weaved
                  Collaboration technologies that caters to the mentioned 5 must-haves of IT Governance:
                                                              i) PPM: Project Portfolio Management (PPM) exercises
                                                                  meaningful IT Governance and provides integrated
                                                                  portfolio of IT investments and Program Management
                                                                  and the financial metrics associated with them.
                                                              ii) SDLC: Digité Enterprise develops global perspective
                                                                  and views Software Development LifeCycle (SDLC)
                                                                  within the context of the larger business maxims and
                                                                  recognizes the potential value of opportunity related to
                                                                  systems-level definition, design, and development as
                                                                  well as the potential impact of adverse effects.
                                                              iii)BPM: Business Process Management (BPM) is one
                                                                  of the drivers of “Business Alignment of IT”. It is
                                                                  important to understand which of the processes are
                                                                  not bringing any VALUE to the organization or have
                       become obsolete. It maintains and sustains constant vigilance by identifying and managing risks
                       routinely through all phases of the process's life cycle.
                  iv) Collaboration: Digité Enterprise helps maintain a shared vision by allowing talent, skills
                       and knowledge to collaborate to achieve common goal, share ownership, and foster collective
                       communication with complete focus on the results. Open communication is encouraged at and
                       between all project levels by enabling formal, informal, and impromptu communication.


                  Enterprise IT Governance if properly supported eventually becomes embedded in the culture and
                  decision making process. The larger and more diverse the enterprise, the slower the evolutionary
                  process becomes. Over the years corporations have acquired large number of in-house
                  applications or point solutions and disparate technologies. This made enterprise technology
                  infrastructure highly complicated and thereby throwing a visibility challenge. Such technological
                  challenges make its users unable to use processes and technologies appropriately or in adherence
                  to the compliance requirements. This operational inefficiency leads to business risk that arises when
                  processes and systems are unable to meet the desired business requirements for cost reductions,
                  governance, productivity gains, and revenue generation. Enterprise IT Governance must be viewed
                  as a long-term initiative that requires continuous investment in order to reap a reward. On the other
                  hand, we could take the easy way out and just pull up a colorful project portfolio management
                  dashboard, nod approvingly and pretend we have things covered.




 www.digite.com                                  2                              Copyright 2005 Digité, Inc. All rights reserved.

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IT Governance with Digité Enterprise

  • 1. diginotes IT Governance with Digité Enterprise Prabhas Sinha IT Governance has never been so prominent until 21st century ushered in with scores of Product Marketing Manager Derek Scoble companies undergoing litmus test of their financial reporting, subsequent introduction of VP - IT Governance Sarbanes-Oxley Act in 2002 and the Section 404 mandating them to uncover their intricate and Digité Inc. deeply buried accounting practices and thereby Corporations padding up for a stricter 82 Pioneer Way Mountain View, CA governance code. The business case and need for IT Governance is convincing. Implementing effective and efficient enterprise IT Governance is problematic, multidimensional, and resource intensive. Trouble areas include culture, environment, geography, organizational control, cost, and commitment to name just a few. Add in the time required to implement real change and the systems to manage the transition and desired end state and we have quite a challenge. So what is IT Governance? It is about visibility, accountability and making IT decisions, which works in tandem with IT Management that is about implementing various IT decisions. IT Governance keeps together the IT strategies and Business strategies and converts IT maxims into strategic actions, which is critical for any CIO. This means that a business has to ensure compliance enforcement and it has to percolate throughout the organization where actions taken by every individual and group throughout an organization has to be consistent with the business goals. Real governance recognizes solid initiative business cases fulfilling strategic plans to be built on approved enterprise architectures using standard procurement processes. These initiatives support vendor and contract management controls overlaying recognized system development lifecycles with integrated project management and quality programs. These initiatives factor in skilled resource management and the enterprise business cycle driven by understanding business processes and organizational capacity. Underlying all the above is the auditing process that verifies that original assumptions and execution are realized according to plan especially if regulatory compliance is an issue. A robust communication mechanism must disseminate the compliance requirements, policies and procedures, reporting parameters and retain the electronic audit trails. On the lines of Federal Sentencing Guidelines (established by United States Sentencing Commission), corporate governance initiatives have started embracing communication, empowerment, enforcement, monitoring, policies and procedures to properly align, integrate, manage, and monitor the governance. Overall the emphasis is on the operational excellence of IT that should have impact on an organization's Customers, Capital, Resources and Cycle Time. The 5 must-have benefits of IT Governance are: 1. Visibility into an integrated strategy portfolio across all IT investments. 2. Financial metrics showing the return on IT investment i.e., costs that it has avoided or reduced and possible revenues it will attract. 3. Strong Program management, reporting and audits exhibiting IT process improvements. 4. Rigorous project execution, measurement, and early warnings of risks. 5. Effective labor and non-labor resource management. If enterprise IT Governance is ever to mean something more than high-level project abstractions presented in executive dashboards we must recognize that true governance is built on structured level components that make the results believable or not. These 5 elements of IT Governance clearly put emphasis on the IT EXECUTION layer within any organization. “Running IT Like Business” and “Business Alignment of IT” are two sides of the same coin. The best laid-out plans flounder without well-executed implementation. Looking through the actual execution, organizations will cut their IT cost and risks by coordinating their Software Development Life www.digite.com 1 Copyright 2005 Digité, Inc. All rights reserved.
  • 2. diginotes Cycle processes with Project Management and aligning their strategies for operations, collaboration and application delivery. Digité Enterprise offers a unique combination of PPM, SDLC, and BPM with seamlessly weaved Collaboration technologies that caters to the mentioned 5 must-haves of IT Governance: i) PPM: Project Portfolio Management (PPM) exercises meaningful IT Governance and provides integrated portfolio of IT investments and Program Management and the financial metrics associated with them. ii) SDLC: Digité Enterprise develops global perspective and views Software Development LifeCycle (SDLC) within the context of the larger business maxims and recognizes the potential value of opportunity related to systems-level definition, design, and development as well as the potential impact of adverse effects. iii)BPM: Business Process Management (BPM) is one of the drivers of “Business Alignment of IT”. It is important to understand which of the processes are not bringing any VALUE to the organization or have become obsolete. It maintains and sustains constant vigilance by identifying and managing risks routinely through all phases of the process's life cycle. iv) Collaboration: Digité Enterprise helps maintain a shared vision by allowing talent, skills and knowledge to collaborate to achieve common goal, share ownership, and foster collective communication with complete focus on the results. Open communication is encouraged at and between all project levels by enabling formal, informal, and impromptu communication. Enterprise IT Governance if properly supported eventually becomes embedded in the culture and decision making process. The larger and more diverse the enterprise, the slower the evolutionary process becomes. Over the years corporations have acquired large number of in-house applications or point solutions and disparate technologies. This made enterprise technology infrastructure highly complicated and thereby throwing a visibility challenge. Such technological challenges make its users unable to use processes and technologies appropriately or in adherence to the compliance requirements. This operational inefficiency leads to business risk that arises when processes and systems are unable to meet the desired business requirements for cost reductions, governance, productivity gains, and revenue generation. Enterprise IT Governance must be viewed as a long-term initiative that requires continuous investment in order to reap a reward. On the other hand, we could take the easy way out and just pull up a colorful project portfolio management dashboard, nod approvingly and pretend we have things covered. www.digite.com 2 Copyright 2005 Digité, Inc. All rights reserved.