Analysis of Benefits and Barriers as a Critical Success Factor in IT Governance Implementation by Using Interpretive Structural Model

Abstract

This study aims to identify and analyze the key sub-factors of benefits and barriers as critical success factors for the implementation of IT Governance. The hope of the research is that the results of this identification and analysis can provide a high value of benefits in order to stakeholders in implementing IT Governance. In addition, it is expected to also give a real contribution to the development of theory or concept in the field of IT Governance especially related to critical success factor. The method used in this research is the interpretive structural model, where this method is very suitable to find the key sub-factor with a well-structured hierarchy structure. The first step of this research begins with a literature review, survey and interviews by involving three experts in the field of IT Governance and then the information is processed according to the rules. The final result shows that sub-factors improve customer service and overall responsiveness is a key sub-factor in benefit factors, whereas the lack of financial and human support becomes a key sub-factor in barriers. These results are empirical because depending on the data obtained through expert interviews involved, therefore the quality and capacity of experts greatly affect the results obtained. This study demonstrates how benefits and constraints as a critical success factor in the application of IT Governance are interrelated. The interpretive structural model provides an understanding of how various benefits and barriers interact with each other. This is important because policymakers typically focus on one or two sub-factors only.

Information Technology Governance Awareness: A Proposed Formula for Assessment

“…This is believed because IT can help improve effectiveness and efficiency in business processes [1]- [5]. To increase the effectiveness and efficiency, it is necessary to optimize the information obtained from IT, so that business processes will get many benefits [6]- [7], opportunities, and gain competitive advantage [8] . In order for this to be achieved, excellent and correct management is needed so that IT involvement is able to support the organization to achieve its goals [9]- [11].…”

“…Lack of commitment and understanding from the leadership, perhaps due to a lack of awareness understanding the importance of IT Governance which can have a major impact on successful implementation [21]- [23]. In addition, the lack of a good understanding of the importance of IT Governance is also a factor that can greatly influence the success of the practice [6], [7], [24]. The implementation of IT Governance will not be successful if it does not get optimal support from top management so that the implementation is only half-assed and as a result, the results are less than optimal.…”