It goverence
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Transcript of It goverence
IT GOVERENCE
BY-Kiran Kendre
Synopsis
• What is IT Governance?• Why IT Governance important• IT Governance Focus Area• IT Governance Framework• IT Governance Principle• IT Governance Landscape• Challenges and Concerns Relative to IT
governance• Value and Effectiveness• Example
What is IT Governance?
• Structure to help align IT strategy with business strategy
• It is a collection of management, planning and performance review policies, practices and processes with associated decision rights
• IT Governance is the responsibility of executives and the board of directors
• IT delivering more business value
IT Governance Landscape
IT Goverance Focus Area
• IT Governance are grouped into the following five focus areas: • Strategic Alignment• Value Delivery• Risk Management • Resource Management• Performance Measurement
Why is IT Goverance important?• Compliance with regulations• Competitive advantage• Support of enterprise goals• Growth and innovation• Increase in intangible assets• Reduction of risk
Three Pillar of IT Goverence • Leadership, Organization, Decision Rights
and Metrics – defines the organization structure, roles and responsibilities, decision rights, a shared vision and meaningful metrics.
• Flexible and Scalable Processes – the IT governance model places heavy emphasis on the importance of process implementation and improvement. (PDCA Cycle)
• Enabling Technology – Leverage leading tools that support the key IT governance components.
IT Governance Framework
Enterprise Vs Business Vs IT Goverance
Principle of IT Goverence• IT Governance involves structures and
processes that direct organizations towards achieving objectives. There are four essential principles : (RACE)
• Responsibility• Accountability• Direct and Control Communication • Empowerment
The IT Governance Framework: COBIT
• Management-oriented• Continually evolving • COBIT with ITIL,
CMMI,PMBOK,ISO 27001 will be effective framework.
• Road Map- Business plan/objective-->IT
Plan->IT Plan execution ->Performance management->continuous process improvement & Learning
Challenges and Concerns Relative to IT governance• Aligning IT and Business Strategy• Corporate Mission – Business Goals – IT
Strategy• Requires involvement from many levels
and activities within the enterprise• Lack of alignment leads to adverse
business issues• Strong IT Governance contributes toward
proper alignment
Measuring IT Governance Performance• Measuring IT performance is a key concern
as it demonstrates the effectiveness and added business value of IT.
• Commonly seen as the IT “Black Hole” – costs continually rise without clear evidence of value derived from the IT function.
• Traditional performance measurement methods require monetary values which are hard to apply to IT systems.
Harley Davidson IT Governance Case Study• Harley Davidson is the oldest producer of
motorcycles and has achieved 20 consecutive years of record growth. Until 2003, Harley Davidson focused solely on manufacturing and selling high quality motorcycles
• They realized that for continued growth, they must unite management and the IT and Audit functions with a common governance while maintaining their unique company culture
• Until 2003, Harley Davidson had limited IT controls in place and the employees had limited knowledge of control and risk.
• There were limited: Standardized user access processes, change management processes or backup and recovery processes.
• Harley Davidson created a new IT compliance department to manage control and risk in the company.
• This department implemented the COBIT framework to focus on key value areas of the business.
• Switched to a broad control framework rather than continually raising the bar.
Conclusion
• We apply governance to IT investment, change projects & service delivery
• For control of portfolio project • It is a continuous improvement
process and it is Learning experience
• Difference between Enterprise, Business and IT Governance and how IT contribute in Business
Thank You