How IT governance informs decision-making of IT
IT governance entails the delegation of IT decision-making rights and responsibilities among different stakeholders in the organization and the rules and procedures for making and monitoring decisions on strategic IT concerns. There are several ways in which IT governance contributes to the decision making of IT. First, IT governance enables the companies and businesses to come up with appropriate IT strategy that matches a given business. Development of IT governance will help organization come up with strategic decisions on how to harness the potentiality of IT.
Second, IT governance warns the board members on any risk. King IV report reveals that one of the purposes of IT management is to oversee the risks associated with outsourced technologies. Consequently, through such oversight, IT governance will enable the shareholders identify risks and develop contingency plans.
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Third, IT management also assists organization in setting up adequate information security and protection against cyber-crime. Fourth, IT governance helps the organization make decisions that comply with the existing laws. It ensures that the organization follows the current IT laws effectively. Lastly, IT governance helps the board members involved in governance in making decisions that promote data quality and information privacy.
How IT should be applied in an organization
According to King IV code, the IT governance should administrate both technology and information so that these support the company in attaining its purpose and strategic objectives. The governance should also carry out an official review of the appropriateness and efficacy of the organization’s technology and information function. Unlike the traditional approach, the current assessment should extend beyond an evaluation of the control milieu and include a view of the efficacy of the information strategy of the organization.
Lastly, the King IV report expects the governing board to unveil the structures and processes of information and technology. They should identify and specify the approaches for monitoring technology and information management. They should also give an indication of how the organization’s current and future objectives are affected by digital development.
Your opinion on whether IT governance is relevant and necessary in the rapidly-changing technological context globally.
IT governance should be treated as one of the relevant and appropriate form of governance. The influence of IT on enterprise performance is bound to grow significantly. Any company that strives for efficiency, innovation, growth, customer responsiveness or business integration must include IT as an essential ingredient for business competitiveness. IT governance supports standardized process components, shared knowledge, communication and electronic linkages. All these elements are the foundations for new business strategies.
IT governance promotes faster responses and increases agility. IT governance is the best channel through which an organization can foster local innovation and at the same time reap the benefits of scale. IT governance is an imperative requirement in the modern hyper-competitive digital economy. IT forms the basis for marketing and knowledge management. Walmart, for example, uses the Information and technology approach to market its products. Without the concept of Information and Technology, many companies may exit the market.
IT governance forms the basis through which businesses can maximize and optimize its information and technology. IT governance enables companies to ensure that both technology and information support the company in attaining its purpose and strategic objectives. It should be noted that generation Z, which constitutes the largest consumers in the modern era spend most of their time surfing and socializing through social networking platforms such as Facebook and WhatsApp. The best marketing tools for targeting Generation Z entails the use of e-marketing and social media advertisement. These tools fall under the IT governance.
