IT Governance Made Simple – Why IT Governance?

welcome back this tutorial will explain IT governance IT governance is defined as an integral part of enterprise governance so let us try and understand what is Enterprise governance enterprise governance is about leadership it's about the leadership setting of vision so let's call it the strategy direction from the strategy direction evolve the organizational objectives to achieve these objectives we have an organization structure each position and the oration structure has a particular role and responsibilities and they make use of processes to achieve the organizational vision so enterprise governance is about leadership it's about setting a strategic vision from the strategic vision we derived the organizational objectives the objectives are achieved through an organization structure and then we for each rule in the organization structure we have responsibilities so I am Enterprise governance is about leadership setting an organizational vision objectives creating an organization structure with roles and responsibilities to achieve the same IT governance is the same thing so why do we have something on IT governance and not finance governance or HR governance of marketing governance manufacturing governance there are a few reasons why IT governance has evolved as a field of its own the first reason is that IP in most organizations accounts for a major portion or in many cases is the second largest beneficiary of the costs the largest beneficiary being the stuff or if I want to reword it of the total revenues the IP accounts for the second largest portion of the budget that's reason number one the second reason why IT governance has evolved in a feel of a sonĂ­s IP has always been considered as a geek technical field with the non IT people having difficulty understanding it because of which it was relegated as a separate entity and it was difficult for the non IT people executors to understand as to what IT was actually doing the end result was that IT many-a-times was considered as a black hole where you put in a lot of investments and you don't get what you expect from those investments the reason for this lack of getting back a return on interest for my tea is twofold one is the executor is not being able to understand what my tea does and second is IT not being able to translate what they do into business terms whatever not being able to create a business case for the value that Heidi provides that is reason to and the third reason is IT in itself has become so complex that governing it by governance I mean transparency and clarity in what IT does in creating value is very difficult so we have IT governance as a separate field but the bottom line is IT governance is a part of enterprise governance and it should be because IT cannot exist on its own itay exists for a reason and the reason is to enable the business processes to achieve the objectives as per the strategy collision with that as the backdrop let us proceed as to what are the various aspects of IT governance the first the most important as aspect is that the IT should align with the organize with the organization or with the business so we have strategic alignment as a first object the second is having a line is not sufficient is IT actually able to create the value based on the value proposition for which the investments were made 90 so we have the second domain images look value this value being created the third is okay value is being created but at what risk in IP one different ocean of IT is that typically in an IT project the end objective is not very clear to the end-user therefore investments are made at the beginning of the IT project assuming a hazy or a fuzzy vision of the end objective and as IT progresses further down the IT project lifecycle the end user requirements a much clearer and better therefore after value delivery the third concept is what is the risk and how are the risk being managed so we have value delivery over here and the third domain is risk management the food going after risk management is you are achieving value by controlling risks but at what costs so what we are talking office resource management and the last and the most important is how are we actually measuring the creation of value at an optimal cost which is performance measurement so these are the five domains of IIT and all of them have corresponding counterparts with the business domains I conclude this tutorial over here and we will address each one of them in the succeeding tutorials thank you for listening and please be back

Maurice Vega

10 Responses

  1. An amazing approach and explanation but with too many pauses on the speech. I'll check your other videos.

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