IT GOVERENCE

BY-Kiran Kendre

Synopsis

• What is IT Governance?• Why IT Governance important• IT Governance Focus Area• IT Governance Framework• IT Governance Principle• IT Governance Landscape• Challenges and Concerns Relative to IT

governance• Value and Effectiveness• Example

What is IT Governance?

• Structure to help align IT strategy with business strategy

• It is a collection of management, planning and performance review policies, practices and processes with associated decision rights

• IT Governance is the responsibility of executives and the board of directors

• IT delivering more business value

IT Governance Landscape

IT Goverance Focus Area

• IT Governance are grouped into the following five focus areas: • Strategic Alignment• Value Delivery• Risk Management • Resource Management• Performance Measurement

Why is IT Goverance important?• Compliance with regulations• Competitive advantage• Support of enterprise goals• Growth and innovation• Increase in intangible assets• Reduction of risk

Three Pillar of IT Goverence • Leadership, Organization, Decision Rights

and Metrics – defines the organization structure, roles and responsibilities, decision rights, a shared vision and meaningful metrics.

• Flexible and Scalable Processes – the IT governance model places heavy emphasis on the importance of process implementation and improvement. (PDCA Cycle)

• Enabling Technology – Leverage leading tools that support the key IT governance components.

IT Governance Framework

Enterprise Vs Business Vs IT Goverance

Principle of IT Goverence• IT Governance involves structures and

processes that direct organizations towards achieving objectives. There are four essential principles : (RACE)

• Responsibility• Accountability• Direct and Control Communication • Empowerment

The IT Governance Framework: COBIT

• Management-oriented• Continually evolving • COBIT with ITIL,

CMMI,PMBOK,ISO 27001 will be effective framework.

• Road Map- Business plan/objective-->IT

Plan->IT Plan execution ->Performance management->continuous process improvement & Learning

Challenges and Concerns Relative to IT governance• 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

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.

Harley Davidson IT Governance Case Study• Harley Davidson is the oldest producer of

motorcycles and has achieved 20 consecutive years of record growth. Until 2003, Harley Davidson focused solely on manufacturing and selling high quality motorcycles

• They realized that for continued growth, they must unite management and the IT and Audit functions with a common governance while maintaining their unique company culture

• Until 2003, Harley Davidson had limited IT controls in place and the employees had limited knowledge of control and risk.

• There were limited: Standardized user access processes, change management processes or backup and recovery processes.

• Harley Davidson created a new IT compliance department to manage control and risk in the company.

• This department implemented the COBIT framework to focus on key value areas of the business.

• Switched to a broad control framework rather than continually raising the bar.

Conclusion

• We apply governance to IT investment, change projects & service delivery

• For control of portfolio project • It is a continuous improvement

process and it is Learning experience

• Difference between Enterprise, Business and IT Governance and how IT contribute in Business

Thank You