1. IT Governance CIS 9002 Kannan Mohan Department of CIS
Zicklin School of Business, Baruch College

2. Learning Goals What is IT governance? Why is this important?
How does it affect the IT department?
What is the role of the CIO in shaping IT governance?
How does IT governance change when IT is outsourced?

3. IT Governance

4. What is IT governance? Decision rights Accountability
Structure for setting up objectives
Monitoring to ensure objectives are achieved
What, who, and how about decisions
Aligning IT spending with company’s strategy
(Weill and Ross, 2004)

5. What Decisions? IT principles – business role
IT architecture – integration and standardization
IT infrastructure – capabilities
Business application needs - rationale
IT investment and prioritization
(Weill and Ross, 2004)

6. Who makes decisions? Governance Archetypes
Business monarchy
IT monarchy
Feudal
Federal
IT duopoly
Anarchy
(Weill and Ross, 2004)

7. Categories of Governance Mechanisms
Decision-making structures
Various governance archetypes
Alignment processes
IT investment process
Formal communications
Transparency of decision-making process

8. IT Governance Focus Areas
Strategic alignment
Value delivery
Resource management
Risk management
Performance measurement
(ITGI - COBIT, 2007)

9. IT Investment Decisions
How do organizations prioritize IT investments?
Who decides what gets funded?
Who owns the process? And who facilitates its implementation?
Who is accountable when things go wrong?
Local vs. Global objectives?
Transparency of process and consequences

10. IT Governance Posture How do you balance global and local objectives?
(Sambamurthy and Zmud, 2012)

11. Role of Board of Directors
Reality?
Lack of IT expertise
Limited discussions on IT-related issues
After the fact updates
Responsibilities? IT risks threatening –
Business continuity
Regulatory compliance
Competitive success
(Sambamurthy and Zmud, 2012)

12. IT Asset Portfolio
(Weill and Aral, 2004)

13. Changes with IT Outsourcing
Accountability without control
Contractual vs. relational governance
Formal vs. informal?
Need for flexibility
Changes in the role of the IT organization
Service delivery to relationship management

14. The Ambidexterity Pendulum

15. Learning Goals What is IT governance? Why is this important?
How does it affect the IT department?
What is the role of the CIO in shaping IT governance?
How does IT governance change when IT is outsourced?