IT Governance 2 nd . Part

1. IT Governance2nd. Part Fernando Edgar Díaz-Prado L Universidad Regiomontana Otoño-2012

2. Six Step Process for Alignment(Luftman & Brier, 1999)

3. Vertical & Horizontal AlignmentGuldentops (2003)

4. Vertical & Horizontal AlignmentBenbya and McKelvey [ 2006]. • They defined a model which highlights the relevance of analysing the relationship between Business and IT (Horizontal Alignment) but also the need to reconcile the views at different levels of analysis (Vertical Alignment). • Alignmentis a continuous co-evolutionary process that reconciles top-down ‘rational designs’ and bottom-up ‘emergent processes’ of all components of Business/IT relationships at three levels of analysis: • Strategic • Operational and • Individual

5. Cont. . . Vertical & Horizontal AlignmentBenbya and McKelvey [ 2006].

6. Enablers & Inhibitors of Strategic Alignment

7. Value of IT at different levels of organization (Weill & Broadbent, 1998) • This model considers 4 Dimensions: Strategic D • considers the benefits for the organization (at strategic level) that the use of IT can bring: • competitive advantage, • strategic alignment and • better customer relations Information D Transactional D Infrastructure D

8. Value of IT at different levels of organization (Weill & Broadbent, 1998) • This model considers 4 Dimensions: Strategic D deals with the value that IT brings to the organization as a result of the improved information, be it in terms of: - accessibility, - quality or - flexibility. Information D Transactional D Infrastructure D

9. Value of IT at different levels of organization (Weill & Broadbent, 1998) • This model considers 4 Dimensions: Strategic D explores the benefits that IT provides to the organization in: - operational transactions, - repetitive activities and - any activities that don´t require intellectual effort. Information D Transactional D Infrastructure D

10. Value of IT at different levels of organization (Weill & Broadbent, 1998) • This model considers 4 Dimensions: Strategic D deals with the benefits that investments in technological equipment related to the functioning of the IS bring to the organization, like: - personal computers, - printers, - operationalsystemsetcl Information D Transactional D Infrastructure D

11. Value of IT at different levels of organization (Weill & Broadbent, 1998) Measure performance Manage cost

12. Performance Measure

13. Risk Management in IT • Is Tthe business risk associated with the use, ownership, operation, involvement, influence and adoption of IT within an enterprise. • In other words: business value preservation. • ISO 27001 Information Security Management Systems

14. What are the questions?

15. To Discover IT Issues. . . • How often do IT projects fail to deliver what they promised? • Are end-users satisfied with the quality of the IT service? • Are sufficient IT resources, infrastructure and competencies available to meet strategic objectives? • What has been the average overrun of IT operational budgets? How often and how much do IT projects go over budget? • How much of the IT effort goes to firefighting rather than enabling business improvements? Symptomatic

16. To Find Out How Management Addresses the IT Issues… • How well are enterprise and IT objectives aligned? • How is the value delivered by IT being measured? • What strategic initiatives has executive management taken to manage IT’s criticality relative to maintenance and growth of the enterprise, and are they appropriate? • Is there an up-to-date inventory of IT risks relevant to the enterprise? What has been done to address these risks? How dotheymanage!

17. IT GovernanceStructures, Process & Relational Mechanisms

18. Peterson Model (2003) of IT GovernanceStructures, Process & Relationship Mechanisms Process StructuralMechanisms IT GovernanceFramework IT GovernanceOutcomes RelationshipMechanisms

19. What are IT Governance Structural Mechanisms? • IT organisation structure (including placement in the overall organization structure) • Roles and responsibilities • IT strategy committee • IT steering committee • CIO and the Board • project steering committees • special advisory board • special task force

20. What are IT Governance Process? • Formal budgeting process • Evaluation methods • Balanced (IT) scorecards • Strategic Information Systems Planning • COBIT, ITSM and ITIL • Service Level Agreements • Prioritization framworks & information economics • Strategic Alignment Model • Business/IT alignment models • IT Governance maturity models

21. Active participation by principle stakeholders Collaboration between principle stakeholders Partnership rewards and incentives (important!) Business/IT position Shared understanding of business/IT objectives Active conflict resolution (‘non-avoidance’) Cross-functional business/IT training Cross-functional business/IT job rotation Communications & Relationship Mechanisms

22. COBIT & IT Governance

23. COBITControl Objectives for Information and related Technology • COBIT contains a framework responding to management’s need for control and measurability of IT services, by providing tools to assess and measure the enterprise’s IT capability for the 34 COBIT IT processes. • The tools include: • Performance measurement elements (outcome measures and performance drivers for all IT processes) • A list of critical success factors, • Nontechnical best practices for each IT process • Maturity models to assist in benchmarking and decision-making for capability improvements

24. Framework IT Governance

25. 34 IT Process within COBIT 4.0

26. IT Governance & COBIT Mappings

27. COBIT, ITIL & IT-Gov • Maping ITIL V.3 with COBIT 4.1 (available in Blackboard).

30. IT Strategy drives IT Process Slide 39 • Different strategy, different important process (e.g. mining vs banking) Value of IT Different process of on different organizations