I-Fit

This document summarizes the initial findings of the I-Fit research project that started in August 2006 as a joint activity of a regional ICT consultancy and a university research center. The main goal of the project is to help the consultants to improve alignment between business and IT in the client organizations. The I-Fit project takes the perspective of the business manager: how a business manager can influence and increase the value of the IT services that he receives. Based on the literature on strategic alignment and Information quality, we develop the I-Fit model. The model assumes causal relationships between IT governance, Strategic Alignment, Information Quality, and Business Performance in an organization.

Improving ICT Governance

Acting upon the recommendations of a review of information and communications technology (ICT) governance and services at USQ, a major restructure was effected merging ICT units previously scattered across the university. The new Division of ICT Services embodies both CobiT and ITIL principles. To ensure the radical change was managed professionally, a change manager was seconded to the project. The value and importance of this role was underestimated and in retrospect it was removed too early. With the new structure now in place, a single service desk has been implemented and service level agreements have been formulated. This chapter describes the new reporting structure of the Division of ICT Services, the internal structure, the goals of the Division and how they align with the USQ corporate goals. Care was taken to ensure that the new ICT structure was logical and conducive to operational effectiveness, efficiency and sound ICT governance. The new structure provides pathways and opportunities for career progression, reflects a client focus and provides role delineation and functional accountability.

Comprehensive Architecture Rationalization and Engineering

This chapter defines a methodical approach, named Comprehensive Architecture Rationalization and Engineering (CARE), to effectively manage the complexity in architecture design and rationalize the architectural assets of IT application portfolios in a service-oriented paradigm. This comprehensive model comprises a prescriptive method to perform a systematic assessment of information systems applications in an application/project portfolio. The process is broken down to 5 interrelated steps: Data Collection, Reverse Engineering, Technology Assessment, Technical Recommendations, and Action Plan for Rationalization. The details and key artifacts are specified for each step in the overarching process. The outcome of the comprehensive analysis consists of a range of technical recommendations and a course of action, which are characterized along three dimensions: refactoring, reengineering, and rearchitecting. The holistic framework provides a multidisciplinary approach of portfolio analysis and service-oriented architecture planning. Practice guidelines and future trends are also articulated in the context. A case study in the finance industry is presented, to illustrate the use of this framework in real-world scenarios.

Governance of Software Development

Governance is the exercise of control and direction over a subject such as a society, an organization, processes, or artifacts, by using laws and policies that are defined, deployed, and executed. In this chapter we develop this definition into a formal conceptual model that can be applied to a variety of governance domains. At the heart of this model lies the concept of the governance solution and its lifecycle. The governance solution embodies the set of mechanisms—decision rights, policies, controls, and measurements—applied to a governance scope in order to achieve some governance goals. As part of the lifecycle, the effectiveness of the governance solution is measured, and corrections and alignments are made as necessary. We demonstrate how this model can be applied to multiple governance domains by providing examples from IT governance as well as software-development governance. We conclude by providing a detailed scenario in the software-development governance space, which looks at large software organizations undergoing transition to agile development methodology. We further demonstrate how the governance model is instantiated and evolved in the context of this scenario.

Competence of Information Technology Professionals in Internet-Based Ventures

This chapter articulates the knowledge and skills required by IT professionals in young Internet-based firms. Building on the general IT governance principle of aligning business and IT, it introduces an adequate competence model, outlines its dimensions, and suggests a framework for modeling the effects of factors internal and external to the firm on the value propositions of the different dimensions. The authors hope that a comprehensive understanding of the role of IT-related competence will assist founders not only in finding suitable partners, but also in aligning e-business strategy and information technology in Internet-based ventures.

A Comparative Case Study of Three Korean Firms

Research has recently begun to place greater emphasis on the strategic application of IT in seeking to integrate firms’ IT infrastructures and business processes, thus boosting companies’ business values. In this context, efforts have been made to formulate workable structures for companies’ IT governance (ITG); however, little practical research has considered the effect of different forms of ITG in a range of domestic and multinational companies. This study undertakes a comparative case study analysis of the ITG setups of three large service sector firms in Korea. This research work sought to identify the activities, types, and determinants of firms’ ITG decision making processes, and to suggest the basis on which forms of ITG may represent rational selections for given service companies. The study was based on in-depth interviews with representatives of three firms, analysis of in-house materials, and the application of multiple perspectives dealing with ITG domains. Case study analysis yielded a detailed picture of the characteristics of ITG related decision making within the firms, suggesting the validity of the proposed ITG framework. The proposed and partially validated ITG framework should be useful for further research and practice of ITG.

Adoption and Implementation of IT Governance

This chapter introduces key IT governance concepts and industry standards and explores their adoption and implementation in the higher education environment. It shows that IT governance processes, structures and relational mechanisms adopted by these institutions generate value through improvements in a number of key focus areas for IT management. It is hoped that the study will inform both practitioners and researchers and lead to a better understanding of the relationship between IT governance structures, processes and relational mechanisms and business benefits.

Applying Organizational Theories to Realize Adaptive IT Governance and Service Management

With the cost, complexity and risk associated with IT systems, the approach to IT governance and service management in many organizations is to centralize and standardize. Often executives pursue a generic approach to the management of information technology, without consideration of their organizational context. This chapter examines the adaptation of IT governance arrangements through the lens of organizational theory. It uses concepts from systems theory, differentiation, value chains and structural contingency theory to give an appreciation of the factors that influence how IT can best support an organization’s business.

The Current State of Information Technology Governance Literature

This chapter introduces current and prior IT governance literature across five key focus areas being strategic alignment of business and IT systems, delivery of value from IT systems, risk management of IT systems, management of IT resources and measurement of the performance of IT systems. The chapter focuses on synthesising the current literature on ITG to achieve three primary objectives. First, the review presents a detailed overview of research across the key focus areas of ITG. Second, the synthesis of the literature identifies important gaps in ITG research. Third, the review aims to guide future thinking and research on ITG in each of the focus areas. This chapter will provide a comprehensive understanding of the current state of IT governance literature.

Unexplored Linkages between Corporate Governance and IT Governance

This chapter discusses the overall importance of both corporate and IT governance, and demonstrates that IT governance is a very important subcomponent of corporate governance. The authors present a framework, based upon a framework previously presented by Weill and Ross (2004), which should facilitate a strong understanding of the different factors and mechanisms that impact firm governance. A number of interesting empirical results relating to these governance mechanisms are presented within the context of the framework. Finally, the chapter presents a number of examples that link corporate and IT governance. In presenting those linkages, the authors identify a number of areas that should provide fruitful avenues for researchers to explore IT governance as it relates to corporate governance, and vice versa.