Governance

Why IT Governance..

Published on 23 Jul 2023 | 4 minutes reading

Introduction

In today's rapidly evolving world, digitization has touched nearly every aspect of business, ranging from industries like Banking, Retail, Healthcare, and Education to common organizational functions like Accounting, Supply Chain, and Marketing. 

The demand for digitized processes has led to a significant increase in IT spending, reaching $4.5 trillion globally in 2023.

However, while businesses are embracing digital transformation, a recent study by McKinsey revealed that 80 percent of organizations embark on this journey without a well-structured plan or framework.

This lack of structure can lead to various challenges, including decreased productivity, cultural issues, and compromised customer service, resulting in wasted resources and investments.


Benefits for Organizations

IT Governance offers a structured approach to ensure that technology adoption and management aligns not just with business use cases but with the organization's overall goals and objectives.

By doing so, IT Governance helps create value for the organization, as determined by its board of directors.

It helps you achieve successful digital adoption by examining three key perspectives:

  1. Identifying the value generated for digitalized function adopted or to be.
  2. Assessing required resources, from people including skills, responsibility, training, etc. to infrastructure required to run this technology. It also identifies information required to evaluate, monitor, and improve processes involved.
  3. Managing associated risks. The tag line “No pain, no gain” is true in many aspects, and technology adoption isn’t any different, with each adoption risks exists, by identifying and properly managing associated risk; not avoiding; the value gets created.

Benefits for You

Planning and organizing: IT Governance provides a system for prioritizing IT objectives, processes, and investments based on the unique nature and goals of your organization. 

It helps you unveil the right technology roadmap for your organization and avoid any pumps down the road by getting in agreement with stakeholders on the roadmap parameters, cost, time, risk, goal etc.

Career advancement: For senior managers aspiring to serve in a governing body like a board or committee, IT Governance is a high-demand and well-paid skill.

Relevance in all organizations: IT Governance exists in almost all companies, regardless of their size.

In smaller organizations, it might be informal and managed by the same people handling other responsibilities. However, in larger and more mature organizations, there are specialized professionals focusing on IT Governance with a clear understanding of its value and progress.

Benefits for Stakeholders

IT Governance benefits and value isn't limited to the IT team; it provides value all players who have vested interests in the organization.

For each player, IT Governance serves as a guide:

  1. Board of Directors: It helps in understanding the value generated from IT adoption, organizing IT usage, and monitoring performance across the business.
  2. Business Managers: It assists in obtaining tech-driven solutions for their operations.
  3. Risk Management Teams: It aids in identifying and managing risks associated with IT usage.
  4. IT Managers: It offers guidance in planning, building, running, supporting, and monitoring IT systems and functions.
  5. Quality Assurance Teams: It ensures controls on managed risks are sufficient and effective.
  6. Partners and Vendors: It helps ensure reliability, performance, and compliance with organizational rules.
  7. Regulators: It ensures the organization's compliance with their rules.

IT Governance provides value to all stakeholers

Conclusion

IT Governance provides a system of checks and balances to steer your organization in the right direction. Whether you are preparing for new challenges, planning next year's goals, seeking assurance, or aiming for a well-structured environment, IT governance is the solution.

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