IT Governance

Abstract

Aligning Information Technology (IT) and business has been a persistent and pervasive problem for over three decades. Studies show that one of the essential components for organizations seeking to improve their alignment maturity is IT Governance. This paper demonstrates the relationship between IT Governance and business performance. The Strategic Alignment Maturity Assessment (SAM) framework is applied as the foundation for relating IT Governance to company performance and to overall alignment maturity. Based on this research model, IT strategic planning, IT budgeting, and IT reaction capacity demonstrate strong contribution to the overall IT Governance maturity score. Furthermore, IT Governance has a significant impact on company performance. Although these results underscore the importance of IT Governance in alignment maturity, there is no silver bullet and the other five SAM components (Communications, Value, Partnership, Technology Scope, and Skills) must also be addressed.

Dissimilarities between applied methods of project management impacting regression in business processes and technical architecture

“…The model touches descriptive and prescriptive aspects of alignment to attain higher levels of IT maturity and, consequently, effectiveness. This directly guides business organizations on how to improve business performance, as mentioned by Luftman, Tal, Dwivedi, and Rigoni (2010). As SAM relates to six business architecture dimensions to express its maturity: Communications, Value Measurements, IT Governance, Partnership, IT Scope, and Skills, we have exposed the following ones to visualize the paper's targets: Maturity of IT processes, Business readiness, and have added Operational agility as a key performing factor.…”

Integrated Methodological Framework for Digital Transformation Strategy Building (IMFDS)

“…Transformation IT governance is an integral part of corporate governance exercised by the board and addresses the definition and implementation of processes, structures and relational mechanisms in the organization that enable both business and IT people to execute their responsibilities in support of business/IT alignment and the creation of business value from IT-enabled business investments [6]. Many sources identify five areas or domains of attention in the context of IT governance that need to be addressed [6,21]: Strategic alignment, Value delivery, Risk management, Resource management, and Performance measurement. These five areas are the concerns of the digital transformation.…”

“… Flexible IT Department Structure that can be Adapted easily. Step 3 -Build the Steering committee A steering committee is composed of strategic, tactical, and operational teams commissioned to allocate and oversee IT initiatives, priorities, spending, and resource allocation [21]. Steering committees include cross-functional and interdepartmental members and are essential to driving meaningful change across the enterprise [14].…”

“…Define How IT asset spending is allocated and reviewed (e.g., cost-based, creating business value, etc. ), and identify people responsible to do this study [21]. A decision is made in a process that follows two stages, the first of which is the formulation of the decision, in which the decision is prepared and ends with the specific commitment to action; in the second stage, the decision is implemented [56].…”

“…The reporting function compares how you are doing with what you set out to do. IT Reporting allows Identifying who manages the senior IT executive and IT function; and how [21]. IT reporting should focus on the things that quantify the value that IT delivers to the organization.…”