Governance Knowledge

2011 ◽  
pp. 216-254
Author(s):  
Petter Gottschalk
Keyword(s):  
Business Processes ◽  
It Governance ◽  
Organizational Structures ◽  
It Use ◽  
Executive Management ◽  
Decision Rights ◽  
It Investments ◽  
Use Of Technology ◽  
The Board Of Directors ◽  
Allocation Of Decision Rights

In many organizations, information technology has become crucial in the support, the sustainability and the growth of the business. This pervasive use of technology has created a critical dependency on IT that calls for a specific focus on IT governance. IT governance consists of the leadership and organizational structures and processes that ensure that the organization’s IT sustains and extends the organization’s strategy and objectives (Grembergen et al., 2004). IT governance matters because it influences the benefits received from IT investments. Through a combination of practices (such as redesigning business processes and well-designed governance mechanisms) and appropriately matched IT investments, top-performing enterprises generate superior returns on their IT investments (Weill, 2004). IT governance can be defined as specifying decision rights and accountability framework to encourage desirable behavior in the use of IT (Weill & Ross, 2004). This is the definition we will use here. Other definitions are for example: (i) IT governance is the structures and processes that ensure that IT supports the organization’s mission. The purpose is to align IT with the enterprise, maximize the benefits of IT, use IT resources responsibly and manage IT risks, (ii) A structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals by adding value while balancing risk versus return over IT and its processes, (iii) IT governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization’s IT sustains and extends the organization’s strategies and objectives, and (iv) IT governance is the system by which an organization’s IT portfolio is directed and controlled. IT Governance describes (a) the distribution of decision-making rights and responsibilities among different stakeholders in the organization, and (b) the rules and procedures for making and monitoring decisions on strategic IT concerns (Peterson, 2004a). IT governance has attracted substantial attention in recent years (e.g., Chin et al., 2004; Grembergen & Haes, 2004a, 2004b; McManus, 2004; Meyer, 2004; O’Donnell, 2004; Peterson, 2004a, 2004b; Rau, 2004; Read, 2004, Robbins, 2004; Trites, 2004; Weill & Ross, 2004, 2005). Here we will discuss IT governance in terms of resource mobilization, allocation of decision rights as well as strategic alignment.

The CIO Enabling IT Governance

2011 ◽  
pp. 315-355 ◽  
Author(s):  
Eng K. Chew ◽  
Petter Gottschalk
Keyword(s):  
Information Technology ◽  
Business Processes ◽  
It Governance ◽  
Organizational Structures ◽  
Governance Mechanisms ◽  
It Investments ◽  
Specific Focus ◽  
Use Of Technology

In many organizations, information technology has become crucial in the support, sustainability, and growth of the business. This pervasive use of technology has created a critical dependency on IT that calls for a specific focus on IT governance. IT governance consists of the leadership and organizational structures and processes that ensure that the organization‘s IT sustains and extends the organization‘s strategy and objectives (Grembergen, Haes, & Guldentops, 2004). IT governance matters because it influences the benefits received from IT investments. Through a combination of practices (such as redesigning business processes and well-designed governance mechanisms) and appropriately matched IT investments, top-performing enterprises generate superior returns on their IT investments (Weill, 2004).

IT Governance as Resource Mobilization

2006 ◽  
pp. 211-231
Author(s):  
Petter Gottschalk
Keyword(s):  
Information Technology ◽  
Business Processes ◽  
It Governance ◽  
Organizational Structures ◽  
Resource Mobilization ◽  
Governance Mechanisms ◽  
It Investments ◽  
Specific Focus ◽  
Use Of Technology

In many organizations, information technology has become crucial in the support, the sustainability, and the growth of the business. This pervasive use of technology has created a critical dependency on IT that calls for a specific focus on IT governance. IT governance consists of the leadership and organizational structures and processes that ensure that the organization’s IT sustains and extends the organization’s strategy and objectives (Grembergen et al., 2004). IT governance matters because it influences the benefits received from IT investments. Through a combination of practices (such as redesigning business processes and well-designed governance mechanisms) and appropriately matched IT investments, top-performing enterprises generate superior returns on their IT investments (Weill, 2004).

E-Business Process Management and IT Governance

2009 ◽  
pp. 1843-1852
Author(s):  
Pallab Saha
Keyword(s):  
Business Process ◽  
Information Technologies ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
It Governance ◽  
Analysis Framework ◽  
Use Of Technology ◽  
End To End ◽  
Current Business

E-business process management (e-BPM) entails management of e-business processes with the customer initiating the process and involves non-linear processes with strong focus on value networks leveraging collaboration and alliances, rather than just business processes within the confines of the organization (Kim & Ramkaran, 2004). E-BPM requires organizations to take a process approach to managing their e-business processes (Smith & Fingar, 2003). The advent of business process reengineering (BPR) (Davenport, 1993; Hammer & Champy, 1993) resulted in numerous organizations initiating BPR programs. While BPR aims to enhance an organization’s process capability by adopting engineering discipline, e-BPM goes a step further and targets to improve the organizational process management capability (Smith & Fingar, 2004). Organizations target end-to-end business processes that deliver maximum customer value through e-BPM (Smith & Fingar, 2003). However, by their very nature, end-to-end business processes more often than not span multiple enterprises incorporating their individual value chains (Porter, 1985; Smith & Fingar, 2003; Smith, Neal, Ferrara, & Hayden, 2002) and involve e-business processes (Kim & Ramkaran, 2004). Integrating fragments of processes across multiple functions and organizations not only involves shared activities and tasks among business and trading partners, but also the capability to integrate disparate IT systems (Kalakota & Robinson, 2003). Effective management of e-business processes depends to a great extent on the enabling information technologies. In fact, Smith and Fingar in 2003 have stated that BPM is about technology. Porter’s value chain is about end-to-end business processes needed to get from a customer order to the delivery of the final product or service (Porter, 1985). The pervasive use of technology has created a critical dependency on IT that demands for a specific focus on governance of IT (Grembergen, 2004). Explicitly or implicitly, organizations specify business activities as business processes, and without realizing these tend to be e-business processes. However, given the current business conditions and a clear understanding by organizations about the complexities of their e-business processes, management of e-business processes is taking center stage (Smith et al., 2002). In the current business scenario where e-business processes, along with information are considered key organizational assets and management of business processes a strategic capability (Kalakota & Robinson, 2003), it is imperative that organizations clearly delineate the need for relevant and pertinent information as it provides visibility and transparency. Additionally, IT being the single most important predictor of the business value of IT (Weill & Ross, 2004) drives the need to analyze and understand the implications of e-BPM on IT governance. The key objective of this article is to investigate the implications of e-BPM on IT governance through the analysis of available literature. In particular, the article argues that a direct influence of e-BPM on IT governance performance is inevitable. While the importance of both effective e-BPM and IT governance is intuitively clear, there is currently little research on elements of IT governance that get enabled by e-BPM. More importantly, there is the lack of a theoretical framework that could be used to analyze. To address this shortcoming, the article also presents an analysis framework. The analysis framework is particularly useful as it incorporates elements from prevalent IT governance frameworks. Using the analysis framework, the article then examines the implications of e-BPM on IT governance and develops research propositions. The aim of developing the propositions is to enable further investigation and research thereby contributing to IT management theory.

IT Governance as Allocation of Decision Rights

2006 ◽  
pp. 232-250
Author(s):  
Petter Gottschalk
Keyword(s):  
It Governance ◽  
Decision Makers ◽  
Decision Rights ◽  
Critical Part ◽  
Allocation Of Decision Rights

Most scholars seem to agree that a critical part of IT governance is allocation of decision rights. Allocation is concerned with identifying decision makers and decision categories.

E-Business Process Management and IT Government

2011 ◽  
pp. 272-278
Author(s):  
Pallab Saha
Keyword(s):  
Business Process ◽  
Information Technologies ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
It Governance ◽  
Analysis Framework ◽  
Use Of Technology ◽  
End To End ◽  
Current Business

E-business process management (e-BPM) entails management of e-business processes with the customer initiating the process and involves non-linear processes with strong focus on value networks leveraging collaboration and alliances, rather than just business processes within the confines of the organization (Kim & Ramkaran, 2004). E-BPM requires organizations to take a process approach to managing their e-business processes (Smith & Fingar, 2003). The advent of business process reengineering (BPR) (Davenport, 1993; Hammer & Champy, 1993) resulted in numerous organizations initiating BPR programs. While BPR aims to enhance an organization’s process capability by adopting engineering discipline, e-BPM goes a step further and targets to improve the organizational process management capability (Smith & Fingar, 2004). Organizations target end-to-end business processes that deliver maximum customer value through e-BPM (Smith & Fingar, 2003). However, by their very nature, end-to-end business processes more often than not span multiple enterprises incorporating their individual value chains (Porter, 1985; Smith & Fingar, 2003; Smith, Neal, Ferrara, & Hayden, 2002) and involve e-business processes (Kim & Ramkaran, 2004). Integrating fragments of processes across multiple functions and organizations not only involves shared activities and tasks among business and trading partners, but also the capability to integrate disparate IT systems (Kalakota & Robinson, 2003). Effective management of e-business processes depends to a great extent on the enabling information technologies. In fact, Smith and Fingar in 2003 have stated that BPM is about technology. Porter’s value chain is about end-to-end business processes needed to get from a customer order to the delivery of the final product or service (Porter, 1985). The pervasive use of technology has created a critical dependency on IT that demands for a specific focus on governance of IT (Grembergen, 2004). Explicitly or implicitly, organizations specify business activities as business processes, and without realizing these tend to be e-business processes. However, given the current business conditions and a clear understanding by organizations about the complexities of their e-business processes, management of e-business processes is taking center stage (Smith et al., 2002). In the current business scenario where e-business processes, along with information are considered key organizational assets and management of business processes a strategic capability (Kalakota & Robinson, 2003), it is imperative that organizations clearly delineate the need for relevant and pertinent information as it provides visibility and transparency. Additionally, IT being the single most important predictor of the business value of IT (Weill & Ross, 2004) drives the need to analyze and understand the implications of e-BPM on IT governance. The key objective of this article is to investigate the implications of e-BPM on IT governance through the analysis of available literature. In particular, the article argues that a direct influence of e-BPM on IT governance performance is inevitable. While the importance of both effective e-BPM and IT governance is intuitively clear, there is currently little research on elements of IT governance that get enabled by e-BPM. More importantly, there is the lack of a theoretical framework that could be used to analyze. To address this shortcoming, the article also presents an analysis framework. The analysis framework is particularly useful as it incorporates elements from prevalent IT governance frameworks. Using the analysis framework, the article then examines the implications of e-BPM on IT governance and develops research propositions. The aim of developing the propositions is to enable further investigation and research thereby contributing to IT management theory.

Strategy Choice

2006 ◽  
pp. 116-125
Author(s):  
Petter Gottschalk
Keyword(s):  
Development Strategy ◽  
It Governance ◽  
Systems Development ◽  
Current Situation ◽  
Strategy Choice ◽  
Decision Rights ◽  
Allocation Of Decision Rights

When needs for change have been identified and proposals for filling gaps have been developed, alternative actions for improving the current situation can be developed. New IS/IT can be developed, acquired, and implemented in alternative ways. Several decisions have to be made when a new IS/IT is chosen. Such decisions are called systems development strategy, and they are illustrated later when we discuss IT governance as allocation of decision rights.

Assessing The COBIT Maturity Model in Manufacturing Company

2019 ◽  
Vol 5 (2) ◽  
pp. 109-115
Author(s):  
Johanes Fernandes Andry ◽  
Gunawan Wang ◽  
Gusti Ngurah Suryantara ◽  
Devi Yurisca Bernanda
Keyword(s):  
Information Systems ◽  
Business Processes ◽  
Standard Procedure ◽  
It Governance ◽  
Maturity Model ◽  
Maturity Level ◽  
It Alignment ◽  
Business Goals ◽  
Manufacturing Company ◽  
Effectiveness And Efficiency

PT Hema Indonesia is manufacturing company established in 2001 and has continued to grow. Nowadays the company has supported business processes in various companies, such as the use of information systems. The purpose of this research is to get an overview of the performance of information systems in order to determine the extent of maturity level which is currently running, with a few aspects to consider such as effectiveness and, efficiency. Implementing IT governance, however, is a challenge to organizations. To ensure IT alignment with business goals use standard COBIT. The analytical tool used is the standard procedure COBIT issued by ISACA. In this paper the method to be used is COBIT 4.1. Coverage of Audit IT Domain are Plan Organize (PO), such as PO4, PO5, PO7 and PO8. The conclusion that can be drawn from the research that has been done is IT governance at the company has been done, although still run optimally within each IT process contained in the sub domain average on level repeatable and defined proses.

ORGANIZATION OF INTERNAL CONTROL IN A REMOTE WORK ENVIRONMENT

2020 ◽  
Vol 3 (8) ◽  
pp. 73-79
Author(s):  
NGUYEN THI HA MY ◽  
Keyword(s):  
Control System ◽  
Work Environment ◽  
Internal Control ◽  
Business Processes ◽  
Rapid Development ◽  
Remote Work ◽  
Use Of Technology ◽  
Internal Control System ◽  
The Russian Federation ◽  
Ministry Of Finance

With the rapid development and widespread use of technology, business processes are being transformed. One of the consequences of the implementation of technologies into the business is the partial transition to remote work, which made it necessary to reflect the corresponding changes in the internal control system (IC). The article is devoted to the analysis of the main shortcomings identified during the transition to the remote mode, in response to which measures are proposed to adapt the IC to the conditions of remote work. Identifies the following areas for improvement of the internal control system. In response to the identified areas successful practical examples are analyzed and potential measures are proposed in the context of the elements identified in the COSO conceptual framework and methodological documents of the Ministry of Finance of the Russian Federation.

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