Page 89 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Unit 5: Corporate Governance and IT

2. Portfolio Management: All IT organisations must manage high project demand with Notes
limited resources. The key is to create a process that builds a portfolio that will generate
the most business value. The process must do this quickly and with little overhead. Too
little process prevents decision makers from getting the information they need, while too
much can cause stakeholders to disengage.

Did u know? Leading IT organisations establish portfolio governance that effectively
balances rigor and responsiveness on an ongoing basis.
3. Project Management: On average, IT delivers only a third of its projects on time, on
budget, and with the required functionality. Effective project-level governance improves
project success rates. Key factors include establishing a PMO, driving the right level of
project methodology, and overinvolving business sponsors and end users in specific stages
across the project lifecycle.

4. Information Risk and Security: The “computerisation” of IT and the emergence of
cloud technologies mean that more and more information is located outside the
enterprise firewall. Governance of plans, policies and frameworks is critical as
organisations experience an explosion in the number and diversity of risks. The way
organisations structure the information risk function and its governance mechanisms
helps protect technology and information from both internal misuse and external
disruptions.

Task Make distinction between portfolio management and project management.

5.2.2 IT Governance Structures, Processes and Relational Mechanisms

The question is: how can enterprises pragmatically implement IT governance? IT governance
can be deployed using a mixture of various structures, processes and relational mechanisms.
When designing IT governance for an organisation, it is important to recognise that it is contingent
upon a variety of sometimes conflicting internal and external factors. Determining the right
combination of mechanisms is, therefore, a complex endeavour and it should be recognised that
what works for one company does not necessarily work for another. This means that different
organisations may need a combination of different structures, processes and relational
mechanisms.
To be able to place IT governance structures, processes and relational mechanisms in a
comprehensible relationship to each other, the framework displayed in Table 5.1 is
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proposed. Table 5.1 is based on Peterson’s framework. Structures involve the existence of
responsible functions such as IT executives and a diversity of IT committees. Processes refer to
strategic decision-making and monitoring.

Notes The relational mechanisms include business/IT participation, strategic dialogue,
shared learning and proper communication.

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