{"id":2456,"date":"2021-12-30T14:26:51","date_gmt":"2021-12-30T11:26:51","guid":{"rendered":"https:\/\/esi.edu.sa\/?p=2456"},"modified":"2021-12-30T14:26:51","modified_gmt":"2021-12-30T11:26:51","slug":"it-governance-definition-and-solutions","status":"publish","type":"post","link":"https:\/\/esi.edu.sa\/en\/it-governance-definition-and-solutions\/","title":{"rendered":"IT Governance &#8211; Definition and Solutions"},"content":{"rendered":"<figure id=\"attachment_2430\" aria-describedby=\"caption-attachment-2430\" style=\"width: 216px\" class=\"wp-caption alignright\"><img decoding=\"async\" class=\"size-full wp-image-2430\" src=\"https:\/\/esi.edu.sa\/wp-content\/uploads\/2021\/12\/admin-ajax-1.png\" alt=\"Mohammad Abdul Khadeer CGEIT, PMP, CISA, CQA, CSTE, CMMi Manager \u2013 IT Trainings\" width=\"226\" height=\"291\" \/><figcaption id=\"caption-attachment-2430\" class=\"wp-caption-text\">Mohammad Abdul Khadeer<br \/>CGEIT, PMP, CISA, CQA, CSTE, CMMi<br \/>Manager \u2013 IT Trainings<\/figcaption><\/figure>\n<p><strong>Introduction<\/strong><\/p>\n<p>From relative obscurity a few years ago, several factors have come together to make the concept of formal IT Governance, a good idea for virtually every company, both public and private. \u00a0Key motivators include the need to comply with a growing list of regulations related to financial and technological accountability and pressure from shareholders and customers. \u00a0Here\u2019s a quick primer on the basics of IT Governance:<\/p>\n<p><strong>What is IT Governance?<\/strong><\/p>\n<p>Simply put, it\u2019s putting structure around how organizations align IT strategy with business strategy, ensuring that companies stay on track to achieve their strategies and goals and implementing good ways to measure IT\u2019s performance. \u00a0It makes sure that all stakeholders\u2019 interests are taken into account and that processes provide measurable results. \u00a0An IT Governance framework should answer some key questions, such as how the IT department is functioning overall, what key metrics management needs and what return IT is giving back to the business from the investment it is making.<\/p>\n<p><strong>Is it something that every organization needs?<\/strong><\/p>\n<p>Every organization\u2014large and small, public and private\u2014needs a way to ensure that the IT function sustains the organization\u2019s strategies and objectives. \u00a0The level of sophistication you apply to IT governance, however, may vary according to size, industry or applicable regulations. In general, the larger and more regulated the organization, the more detailed the IT Governance structure should be.<\/p>\n<p><strong>What are the drivers that motivate Organizations to implement IT Governance infrastructures?<\/strong><\/p>\n<p>Organizations today are subject to many regulations governing data retention, confidential information, financial accountability and recovery from disasters. While none of these regulations requires an IT governance framework, many have found it to be an excellent way to ensure regulatory compliance. By implementing IT governance, you\u2019ll have the internal controls you need to meet the core guidelines of many of these regulations, such as the Sarbanes-Oxley Act of 2002.<\/p>\n<p><strong>What\u2019s the business case? \u00a0That is, how one can convince top management that need to be done?<\/strong><\/p>\n<p>Make sure that the right people are selling the concept; if IT is selling it then it will be an issue. \u00a0It\u2019s much more effective if a cross-functional team consisting of IT professionals and line-of-business managers makes the case to the board of directors that effective IT management is an important part of the company\u2019s success. \u00a0The team must be able to explain that the company needs a road map &#8211; something to tell decision-makers where the company is, where it needs to be and how best to get there. \u00a0And of course, talk about the benefits &#8211; greater efficiency and accountability, along with reduced risk. \u00a0Be careful, however, when talking about Return of Investment (ROI), a lot of the cost of implementing an IT Governance framework can be chalked up to what management should be doing anyway. \u00a0Simply put, companies have to accept the cost, but they don\u2019t like to hear that.<\/p>\n<p><strong>What are the major focus areas that make up IT Governance?<\/strong><\/p>\n<p>According to the IT Governance Institute, there are five areas of focus:<\/p>\n<ul>\n<li><strong><em>Strategic Alignment:<\/em><\/strong> Linking business and IT so they work well together. \u00a0Typically, the lightning rod is the planning process and true alignment can occur only when the corporate side of the business communicates effectively with line-of-business leaders and IT leaders about costs, reporting and impacts.<\/li>\n<li><strong><em>Value Delivery: <\/em><\/strong>It is to be ensured that the IT department does what\u2019s necessary to deliver the benefits promised at the beginning of a project or investment. \u00a0The best way to get a handle on everything is by developing a process to ensure that certain functions are accelerated when the value proposition is growing and eliminating functions when the value decreases.<\/li>\n<li><strong><em>Resource Management: <\/em><\/strong>One way to manage resources more effectively is to organize the staff more efficiently &#8211; for example, by skills instead of by line of business. \u00a0This allows organizations to deploy employees to various lines of business on a demand basis.<\/li>\n<li><strong><em>Risk Management: <\/em><\/strong>Instituting a formal risk framework that puts some rigor around how IT measures, accepts and manages risk, as well as reporting on what IT is managing in terms of risk.<\/li>\n<li><strong><em>Performance Measures: <\/em><\/strong>Putting structure around measuring business performance. \u00a0One popular method involves instituting an IT Balanced Scorecard, which examines where IT makes a contribution in terms of achieving business goals, being a responsible user of resources and developing people. \u00a0It uses both qualitative and quantitative measures to get those answers.<\/li>\n<\/ul>\n<p><strong>How actually implement everything that involved in IT Governance?<\/strong><\/p>\n<p>It doesn\u2019t make sense to reinvent the wheel by starting from scratch, so don\u2019t even try. \u00a0Start with a framework; there are many to choose from, but using at least one means everything has already been organized and bulletproofed by industry experts worldwide. \u00a0These frameworks even offer implementation guides.<\/p>\n<p><strong>Here is a quick rundown on the choices:<\/strong><\/p>\n<p><strong>CoBIT<em>:<\/em><\/strong> \u00a0This framework, from the Information Systems Audit and Control Association (ISACA), is probably the most popular. \u00a0Basically, it\u2019s a set of guidelines and supporting toolset for IT Governance that is accepted worldwide. \u00a0It\u2019s used by auditors and companies as a way to integrate technology to implement controls and meet specific business objectives. \u00a0The latest version, released in May 2007, is CoBIT 4.1. \u00a0CoBIT is well-suited to organizations focused on risk management and mitigation.<\/p>\n<p><strong>ITIL<em>:<\/em><\/strong> \u00a0<a href=\"http:\/\/www.cio.com\/article\/40341\" rel=\"nofollow noopener\" target=\"_blank\">The Information Technology Infrastructure Library <\/a>(ITIL) from the Government of the United Kingdom runs a close second to CoBIT. \u00a0It offers eight (8) sets of management procedures in eight books: service delivery, service support, service management, ICT infrastructure management, software asset management, business perspective, security management and application management. \u00a0ITIL is a good fit for organizations concerned about operations.<\/p>\n<p><strong><em>COSO:<\/em><\/strong> \u00a0This model for evaluating internal controls is from the Committee of Sponsoring Organizations of the Tread way Commission. \u00a0It includes guidelines on many functions, including human resource management, inbound and outbound logistics, external resources, information technology, risk, legal affairs, the enterprise, marketing and sales, operations, all financial functions, procurement and reporting. \u00a0This is a more business-general framework that is less IT &#8211; specific than the others.<\/p>\n<p><strong><em>CMMI:<\/em><\/strong> \u00a0The Capability Maturity Model Integration method, created by a group from Government, industry and Carnegie-Mellon\u2019s Software Engineering Institute, is a process of improvement approach that contains 22 process areas. \u00a0It is divided into appraisal, evaluation and structure. \u00a0CMMI is particularly well-suited to organizations that need help with application development, lifecycle issues and improving the delivery of products throughout the lifecycle.<\/p>\n<p><strong>There are a lot of framework choices are available and how choose the right one?<\/strong><\/p>\n<p>Most companies go with CoBIT or ITIL, but others can also fit the bill, for operations, try ITIL. \u00a0For application development and lifecycle issues, try CMMI. \u00a0For risk, use CoBIT. \u00a0CoBIT is also a great umbrella framework. \u00a0But combining frameworks can also make sense. \u00a0One might want to use CoBIT as an overall framework; then use ITIL for your operations, CMMI for development and ISO 17799 for security. \u00a0In fact, combining frameworks is fairly common. \u00a0Use a framework that fits for corporate culture and that the stakeholders are familiar with. \u00a0If the company is using one of these frameworks and can leverage it to be its IT Governance framework, all the better.<\/p>\n<p><strong>Can we do this alone, or should we get some outside help?<\/strong><\/p>\n<p>Sometimes it makes sense to get help, and implementing an IT governance framework is one of those times. Not only is internal expertise on IT governance hard to come by, but executives just don\u2019t have the time. The best scenario is usually a combination of the two. Internally, someone really needs to own the process, but getting some help is essential.<\/p>\n<p><strong>What can go wrong if it\u2019s not implemented effectively?<\/strong><\/p>\n<p>If the IT Governance framework isn\u2019t implemented properly, it can directly affect how IT is perceived at a high level. \u00a0The last thing is required for IT is to be perceived as a cost center that doesn\u2019t produce real value. \u00a0Lack of effective implementation also can cause continued issues with project overruns and poor value to cost measurements, not to mention stakeholder dissatisfaction.<\/p>\n<p><strong>What are core tips for ensuring that it goes smoothly and delivers positive results?<\/strong><\/p>\n<p><strong>You\u2019ve heard it all before, but here we go:<\/strong> \u00a0Get executive buy-in. \u00a0Dedicate a cross-functional team to the process and get outside help if needed. \u00a0Clearly delineate the roles and responsibilities of each department and stakeholder in clear terms. \u00a0Take into account the corporate culture and adjust accordingly. \u00a0Maintain continual communication during the process. \u00a0Measure and monitor the progress of the implementation. \u00a0<strong>And don\u2019t consider this a \u201cnice-to-have\u201d\u2014it\u2019s a \u201cneed-to-have.\u201d<\/strong><\/p>\n<p style=\"text-align: center;\"><strong>\u00a0<\/strong><strong>*****\u00a0\u00a0\u00a0\u00a0 End of Article\u00a0\u00a0\u00a0\u00a0 *****<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-2456","post","type-post","status-publish","format-standard","hentry","category-uncategorized","infinite-scroll-item","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/posts\/2456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/comments?post=2456"}],"version-history":[{"count":1,"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/posts\/2456\/revisions"}],"predecessor-version":[{"id":2457,"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/posts\/2456\/revisions\/2457"}],"wp:attachment":[{"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/media?parent=2456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/categories?post=2456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/esi.edu.sa\/en\/wp-json\/wp\/v2\/tags?post=2456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}