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WHY CORPORATIONS ARE ASKING FOR an INFORMATION SYSTEMS GOVERNANCE ? ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 1 Almiro de Oliveira 4. IS Governance.

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Presentation on theme: "WHY CORPORATIONS ARE ASKING FOR an INFORMATION SYSTEMS GOVERNANCE ? ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 1 Almiro de Oliveira 4. IS Governance."— Presentation transcript:

1 WHY CORPORATIONS ARE ASKING FOR an INFORMATION SYSTEMS GOVERNANCE ? ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid Almiro de Oliveira 4. IS Governance vs IT Governance 1. Modern Corporations are IBO 2. IS Politics 5. Information Governance (5 arguments) 3. IS Governance

2 Top Management must assume the IS Governance since it is a very critical and strategic issue for Management and for Organizations 2 ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 Almiro de Oliveira 1. Companies are Information Based Organizations (IBO) – because Organizations are becoming IBOs

3 Top Management must explicit IS Politics, because the objectives and goals of IS investments are critical for the future of the Organizations ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 Almiro de Oliveira 2. IS Politics Politics concerns with the use of power Information is the support for the use of power

4 IS investments 4 ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 Almiro de Oliveira 2. IS Politics (cont.) - Domain Centralization, Decentralization, Empowerment Human Resources IS partnerships operations Integration level Innovation, Research & Development Differentiation & Competitiveness Internal marketing of available solutions Distribution & Information access Paperless office Security Economics: costs, overheads, charge back

5 Top Management must assume and must be committed with Information Systems Governance. Why? 5 ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 Almiro de Oliveira 3. Information Systems Governance Because: 1) Of it’s phenomenological complexity, 2) Of the variety of resources involved in the IS solutions, 3) Of the great impact it can have on Organizations Competitiveness and Sustainability.

6 6 Range of activities related to decision-making, regarding the definition of objectives, politics and strategies Almiro de Oliveira 3. Information Systems Governance (cont.) ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 IS Objectives, IS Politics and IS Strategies must be compatible/integrated with the Corporate Governance’s objectives, politics and strategies.

7 7 Almiro de Oliveira ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid Selection and clarification of the objectives to be achieved with Information Systems investments 3. Information Systems Governance (cont.) Main areas & Contents: 2. Definition of IS Organization models and its integration with the Institution’s Macro-Structure 3. Characterization of the model and of the practices of IS Governance, namely the: - IS Urbanism - IS Architecture - IS Planning - IT Products Acquisition - IT Products Utilization - IT Organization Models (resources deployment) - IT Operations & Processes Model - IT Performances Monitoring

8 8 IS is a System IS Governance is not the same as IT Governance Almiro de Oliveira ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid Information Systems Governance vs IT Governance IT Governance is a part of IS Governance IT is a tool (an element of the system)

9 9 Set of activities which intent to reduce operational risks created by IT environment, through internal control and auditability solutions, which intend to ensure the integrity, the completeness and the Information traceability Almiro de Oliveira ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 Integrity: Totality, entirety 4. IT Governance (cont.) Completeness : Complete, whole, entire Traceability: Detectable, localizable, follow the trail, path

10 Sarbanes-Oxley (30/07/2002) from USA Congress, contains 66 articles and only 4 have connections to IT departments: 302 – Financial Reporting Responsibility 404 – Evaluation of internal Management controls 409 – Real time Management of Information flows 1102 – documents falsification/fraud 10 Almiro de Oliveira ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid IT Governance (cont.)

11 11 Top Management must be concerned with Information as a Corporate resource, as an Asset and as a Competitive advantage critical factor Almiro de Oliveira ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid Information Governance “How Information gives you competitive advantage”, (Porter & Millar, 1985) Information Governance should be a responsibility of the Institution’s President CEO must be the cIo cIo is not the same as cITo...

12 12 Almiro de Oliveira ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid INFORMATION GOVERNANCE (CONT.) Main Areas – job description  Information Supply & Information Stocks  Tools & Resources  Information Production Process Activities & Information Production Models Production Models  Information Quality  Access/reach & End Use of Information  Economic Approach  Information Governance Models

13 13 CATEGORY 1 Managing IT services 2 Working with non-IT colleagues 3 Working with customers 4 Managing enterprise processes TOTAL Almiro de Oliveira ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 CIO … or … cITo ?? IT Savvy : “What Top Executives Must Know to Go from Pain to Gain”, pg 143 Weill, P. & Ross, J.W. HBP, 2009 CIO - time assigned 44% 36% 10% 100%

14 14 Almiro de Oliveira CATEGORY 1 Managing IT services 2 Working with non-IT colleagues 3 Working with customers 4 Managing enterprise processes TOTAL ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 Almiro de Oliveira Proposal 2010 CIO - time assigned 44% 36% 10% 100% cIo … for the XXI Century … CIO - time assigned 44%→20% 36%→20% 10%→ 30% 10%→ 30% 100%


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