Lesson 5 Flashcards
IT governance definition
The way an organization controls IT (investment) decision-making.
Goals of IT governance
Achieve IT-Business alignment
Control formulation (creating) of IT strategy
Control implementation of IT strategy
IT governance inlcudes:
Responsibilities each stage of decision-making process
Allocating decision rights
Establishing accountability framework for IT
Who makes most IT (investment) decisions? - Centralization
Corporation managers or central IT
Who makes most IT (investment) decisions? - Decentralization
SBU/LOB managers or local IT
SBU = Strategic business unit LOB = line of business
Who makes most IT (investment) decisions? - Federation
Some corporation level
Some local level
Centralized IT governance - advantages
Centralized = Corporation controls IS priorities
Economies of scale
No repetitive projects
Control of IT standards
Better support for integration
Decentralized IT governance - advantages
Decentralized = Business units control IS priorities
Responsive to business needs
Accountability of business units for cost
IT Governance archetypes (centralized to decentralized)
Business monarchy
IT monarchy
Federal
Duopoly
Feudal
Anarchy
IT principle
High-level decisions about the IT
Customized IT governance matrix - Three-step process:
Initiation (proposal)
Development
Approval
Customized IT governance matrix - Stakeholders
Top management team (TMT)
IT professionals (ITP)
Local administrators (LA)
Professional users (PU)
Customized IT governance matrix - Investment levels
High vs. Low
Board’s IT Governance (ITG) Cube (Matta et al. 2016) is for determining:
Responsibilities of the board regarding IT governance
Board’s IT Governance (ITG) roles
Monitor
Advise
Co-opt
Assimilate (supports the other 3 roles)
Board’s IT Governance (ITG) functions
IT risk mitigation
IT value creation
Board’s IT Governance (ITG) mechanisms
Decision-making structures
Formal processes
Communication approaches
IT integration strategies (after takeover or merger)
Transformation (renewal)
Combination (standardization)
Consolidation (takeover)
Co-existence (synchronization)
IT integration capability means 3 things (after takeover)
The new organization is able to integrate both firms’:
- Technical infrastructure
- IT management processes
- IT personnel
Successful IT integration requires … integration.
Technical
Operational
Social
Factors influencing IT integration capability (most influencing to least)
- Business Flexibility (.57)
- IT Infrastructure Flexibility (.47)
- Prior IT integration experience (.37)
Four dimensions of IT infrastructure flexibility
IT compatibility
IT connectivity
Modularity
IT personnel skills flexibility
IT compatibility
The degree to which IT components running on a specific platform can run on another platform
IT connectivity
The number and variety of IT components to which a firms’ IT components can connect
