Essay about 9781423901693 PPT Ch05

Submitted By nidhipatel2908
Words: 1351
Pages: 6

What is IT Governance?
• Corporate governance
– Processes, customs, rules, procedures, policies, and traditions – Determine how to direct and control management activities • People involved in corporate governance
– Board of directors, CEO, senior executives, and shareholders • Interest in corporate governance has grown due to recent accounting scandals
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What is IT Governance? (continued)
• IT governance
– Decision-making process
– Involves investments in IT
– Includes defining:





Decision-making process itself
Who makes the decisions
Who is held accountable for results
How the results of decisions are communicated, measured, and monitored

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What is IT Governance? (continued)
• Primary goals of effective IT governance
– Ensuring that an organization achieves good value from its investments in IT
– Mitigating IT-related risks

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What is IT Governance? (continued)

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Ensuring that an Organization
Achieves Good Value from its
Investments in IT
• Many parts of the organization could not operate without IT
• Governance must be applied to the management of
IT
– Effective IT strategic planning process ensures close alignment between business and IT goals
– Apply good project management principles

Guide to Microsoft Virtual PC 2005 and Virtual Server 2007

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Mitigating IT-Related Risks
• Use good internal controls and management accountability • Internal control
– Provide reasonable assurance for:
• Effectiveness and efficiency of operations
• Reliability of financial reporting
• Compliance with applicable laws and regulations

• Improper conduct of senior managers and failure to hold managers accountable can circumvent internal controls
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Mitigating IT-Related Risks (continued)
• Rules and regulations
– Hold senior management accountable for the integrity of financial data and internal controls

• Accounting, consulting, and software firms can provide products and services
• Five key activities needed for effective IT governance Information Technology for Managers

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Why Managers Must Understand IT
Governance
• Universal goal for businesses
– Leveraging IT to transform an enterprise and create value-added services, increased revenue, and decreased expenses

• IT-related initiatives are seldom simple and straightforward • Good IT governance
– IT organization is better aligned and integrated with the business – Risks and costs are reduced
– IT helps the company gain a business advantage
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IT Governance Frameworks
• IT Infrastructure Library (ITIL)
– Provides best practices and criteria for effective IT services • Control OBjectives for Information and Related
Technology (COBIT)
– COBIT provides guidelines for more than 30 processes that span a wide range of IT-related activities • Frameworks are complementary, not competing

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IT Infrastructure Library (ITIL)
• Set of guidelines initially formulated by the UK government – Widely used today throughout Europe and the
United States

• Standardize, integrate, and manage IT service delivery • Consists of five distinct volumes

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IT Infrastructure Library (ITIL)
(continued)
• Addresses






Strategy and value planning
Roles and responsibilities of key players
Planning and implementing service strategies
Business planning and IT strategy linkage
Risks and critical success factors for implementing
ITIL

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Control OBjectives for Information and
Related Technology (COBIT)
• Set of guidelines
• Goal
– Align IT resources and processes with business objectives, quality standards, monetary controls, and security needs

• Issued by the IT Governance Institute
– www.isaca.org/cobit.htm

•…