IT Governance

Question 1

What is IT governance

Answer 1

Establishing a framework for IT related decision making, and for managing risks associated with IT activities

Question 2

Benefits of IT governance

Answer 2

• Better decision-making: IT decisions are aligned with the organization’s goals and values.
• Lower risk: Helps find and manage risks linked to IT activities.
• Improved performance: IT resources are used more effectively, boosting efficiency.
• More transparency and accountability: Clear processes make it easier to track decisions and build trust.
• Risk prevention: Good IT governance protects against data breaches, downtime, legal issues, and reputational harm.

Question 3

Challenges of IT governance

Answer 3

• Resistance to change: Some people may not want to follow new rules and processes.
• Lack of resources: It takes time, money, and expertise, which might be limited.
• Complexity: It can be hard to set up, especially in large or spread-out organizations.
• Balancing innovation and risk: It’s tricky to stay innovative while still managing risks and following rules.

Question 4

Value creation

Answer 4

• The processes and activities that lead to the production of a marketable good
• the result of how resources are combined to produce goods
• the effectiveness of the value creation process is determined by the effacing of the processes

Question 5

Value creation in a digital context

Answer 5

1. Encoding
2. Computation
3. Aggregation
4. Inscription in physical object
5. Use

Question 6

IT-Governance dimensions

Answer 6

1. Focus of IT governance; what to govern
2. Scope of IT governance: who to govern
3. Patterns of IT governance: how to govern

Question 7

Centralisation

Answer 7

Involves a single entity or authority having control over the system.
Benefits: clear decision making, centralised security, easier maintenance
Issues: lack of flexibility, potential for abuse of power, suceseptibility of system wide failure

Question 8

Orchestration

Answer 8

Different digital technologies contribute to an organisation value generation proposition.
- the value generating propositions of different digital technologies have to be balanced to optimise the company value proposition