IT Governance and Business-IT Alignment Frameworks, Models, and the Best Practices

Author(s):  
Aboobucker Ilmudeen

Information technology (IT) has become a vital function, and almost all organizations depend on IT. The IT dependency causes the executives to use IT governance practices for the IT investment decision-making process. Organizations spend more on IT investments even those that are over budget, come under pressure, behind schedule, and are generating fewer paybacks than anticipated. Hence, business organizations are continuously examined and believed to be answerable for their IT investment more than ever. This chapter focuses on various IT governance and business-IT alignment frameworks, models, and best practices to discuss in this context.

Author(s):  
Aboobucker Ilmudeen

Although the multifaceted effects of managing or governing IT have been taken into consideration in both practice and theoretical debate, the mechanism through which these bring firm performance is yet unclear and limited. Drawing on the resource-based theory and the process theory, this chapter aims to systematically review the antecedents of business-IT alignment on the firm performance context. The findings of this study show that the business-IT alignment is derived from IT governance practices and managing IT investment to achieve firm performance. This study proposes that the firm performance cannot be attained by merely investing in IT; instead, firms should focus on effective management of IT practices and strategically align their business and IT strategies.


Author(s):  
Karim Mezghani

One of the concerns linked to ERP implementation is alignment. Indeed, ERP systems affect almost all business processes and even some strategic choices of a firm. That is why many studies focus on alignment concerns when studying ERP implementation. Nevertheless, firms are more and more interested in switching toward cloud ERP. This involves great challenges for business-IT alignment of an enterprise. Also, with cloud ERP, data and applications are provider-hosted. So, the way ERP is managed may be redefined and achieving alignment might be more challenging. Thus, this chapter aims to expose the major challenges and issues linked to ERP systems alignment. Some tendencies and best practices are also proposed for firms to overcome the alignment challenges, mainly in a cloud environment.


2016 ◽  
pp. 1142-1160
Author(s):  
Charles Boamah-Abu ◽  
Michael Kyobe

The higher failure rate in SMEs is attributable factors including poor leadership, management and governance. Although IT adoption is prevalent in SMEs, not much is known about its governance. This research investigated IT governance practices in 67 SMEs in selected industries and provinces in South Africa. The findings revealed both sound and poor practices. SMEs with centralised IT departments had better practices, e. g., IT strategic investments; closer interactions among IT and business managers; and training of employees. The other SMEs managed IT opportunities poorly, e. g., irrationally IT investment decision-making; poorly defined IT roles and responsibilities; and noncompliance with IT legislations. It was also found that firm size, industry type and location influenced IT governance practices. Larger SMEs had more effective practices and there were differences in IT resource management among provinces. However, age of a firm and years of IT usage did not have much influence.


Author(s):  
Charles Boamah-Abu ◽  
Michael Kyobe

The higher failure rate in SMEs is attributable factors including poor leadership, management and governance. Although IT adoption is prevalent in SMEs, not much is known about its governance. This research investigated IT governance practices in 67 SMEs in selected industries and provinces in South Africa. The findings revealed both sound and poor practices. SMEs with centralised IT departments had better practices, e. g., IT strategic investments; closer interactions among IT and business managers; and training of employees. The other SMEs managed IT opportunities poorly, e. g., irrationally IT investment decision-making; poorly defined IT roles and responsibilities; and noncompliance with IT legislations. It was also found that firm size, industry type and location influenced IT governance practices. Larger SMEs had more effective practices and there were differences in IT resource management among provinces. However, age of a firm and years of IT usage did not have much influence.


2009 ◽  
Vol 9 (1) ◽  
pp. 1850158 ◽  
Author(s):  
Mirela Gheorghe ◽  
Pavel Nastase ◽  
Dana Boldeanu ◽  
Aleca Ofelia

Relatively new in Romania, IT governance is defined as procedures and policies established in order to assure that the IT system of an organization sustains its goals and strategies. This bundle of policies and procedures, following the best practices in the area, intends to guide and control the IT function in order to add value to the organization and to minimize IT risks. The purpose of the research is to identify the measure in which the IT governance practices are implemented to the level of the financial institutions in Romania. The goal of this paper is a comparative analysis for implementing IT governance using data offered by the IT Governance Institute. This institute makes every year a study (IT Governance Global Status Report – 2006) to determine a sense of priorities and to develop actions for implementing IT governance, using data which acknowledges once more the need for all organizations to have tools and services to assure an efficient IT governance. In this way, the research will analyze, in the field of Romanian financial institutions, the most serious IT problems pointed out by the respondents from the last year, the most efficient measures considered by top management for resolving problems pointed out, the best used practices in IT governance and the most used frameworks for implementing IT governance practices.


2020 ◽  
pp. 1123-1146
Author(s):  
Yannick Bartens ◽  
Hashim Iqbal Chunpir ◽  
Frederik Schulte ◽  
Stefan Voß

Business/IT alignment can be considered a key challenge in IT governance and becomes especially important in IT-heavy and internet based business models. Recent discussions express the need for a bi-directional paradigm for internet based business models. IT governance frameworks support business/IT alignment but mostly follow a business-driven alignment paradigm. We identify characteristics of internet based business models and use the case of streaming to examine how the IT governance framework COBIT 5 can integrate these characteristics under consideration of a bi-directional business/IT alignment process. We reveal that requirements for streaming business models may not be fully covered by the framework. Based on a structural description of internet based business models and the COBIT 5 Goal Cascade, we explain these specific requirements and propose a possible integration of a bottom-up alignment. With this work we provide guidance in the challenge of business/IT alignment for internet based business models and show pathways for IT governance frameworks to better support a bi-directional alignment.


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