Page 88 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes 4. There is a positive impact on the share price.
5. It provides proper inducement to the owners as well as managers to achieve objectives
that are in interests of the shareholders and the organisation.
6. Good corporate governance also minimises wastages, corruption, risks and
mismanagement.
7. It helps in brand formation and development.
8. It ensures organisation is managed in a manner that fits the best interests of all.

Self Assessment

Fill in the blanks:
1. ............................................. Governance deals with the manner the providers of finance
guarantee themselves of getting a fair return on their investment.
2. Corporate Governance ensures ............................................. which ensures strong and balanced
economic development.

5.2 IT Governance

IT governance determines how the IT function manages demand, delivers value, and protects
against risk. There are many people, processes, and technologies that play a role in keeping IT
running. The broad nature of IT governance can make it difficult for IT leaders to know where to
focus their efforts to have the greatest impact. IT governance helps firms define who is responsible
for what and how IT decisions are taken. It enables IT to adhere to business objectives and
maximise value from investment. It can protect against failures that result from the misalignment
of IT and business strategies.

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Caution There is no single governance model that fits all organisations across all
geographies or sectors.
Some organisations give their CIOs a place on the board – or at executive level; others set up
governance committees to drive IT; others lack a formal governance structure but embed their
CIO more centrally within the corporate structure.

5.2.1 Four Pillars of IT Governance

Organisations should excel in four areas of governance to be effective. For other governance
activities beyond these critical pillars of success, we believe IT leaders should assess their
organisation’s maturity to identify the greatest opportunities for improvement relative to peers.

1. Enterprise Architecture: Effective architecture governance reduces long-term support costs
and enables IT to be responsive to business need. The longer-term strategic benefits,
however, are often out-of-synch with project-specific goals and near-term pressures to
deliver capabilities. Successful EA groups break this trade-off by moving from red tape
stage-gates to a toolkit that is integrated into workflows and accelerates design and
development.

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