When innovative technologies are paving the way for new business models and operations, organizations need IT governance as their guidance. The framework standardizes processes, roles, tasks, and associations to align your goals with the company strategy. Its aim is to create value for your efforts and deliver them to the clients efficiently. In this article at Strategic Finance, Barry Nathan, Sean Hare, and Pradeep Raju discuss the 4 key IT governance aspects.
The IT Governance Aspects
IT governance is a framework standardized by ITIL and ISACA. They improve IT’s processes and operations through their guidelines so that IT empowers the company business strategy. The framework helps select relevant projects, assess risks, enforce compliance, and calculate the performance of the IT projects. Following are the 4 aspects of IT governance you must know about:
- Being Responsible: The senior management decides the strategy and risks associated. The CEO then establishes policies and standards to implement the strategy. The CIO ensures timely delivery of projects with the expected quality and cost reduction. The projects must adhere to the approved project management methodology and undergo controlled supervision to get the best results. The IT governance committee also addresses IT-related requirements of the organization based on the IT budget. It assesses the feasibility of projects based on the in-house infrastructure, resources, emergency mitigation, and business conditions. Sometimes, it also looks after software licensing, software and hardware warranties, devices and networking systems, etc.
- Communicating the Ups and Downs: The committee ensures that the investments in technology are made to meet the strategic goal of the company. ROI, NPV, etc. are the financial metrics that help monitor and validate the IT spend. Generally, the committee participates with the board of directors to objectively assess business cases, evaluate risks, and allot funds. It also tracks the progress of the project to redirect or stop it when needed.
- Enabling the IT Team: The IT department can best decide if the company needs to invest in a software or it can be developed in-house. Whether PaaS, cloud, or hybrid infrastructure, the committee decides the most viable option for operations. It also assesses the software based on the security requirements, risks involved, and network and bandwidth necessities.
- Controlling the IT Performance: To enable better performance, it is important that the IT governance committee adheres to standard rules and regulations. ITIL provides guidance on ‘software asset management, service support, service delivery, security management, and application management.’ ISACA’s COBIT controls the four areas of the IT governance—‘planning and organization, acquisition and implementation, delivery and support, and monitoring.’ ISO 17799 looks after the IT security.
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