IT Governance:

Before learning about IT governance, it is important to know what corporate governance is. Corporate governance lays down the rules and principles that govern an organization in the achievement of its goals. It puts forth a framework within which the board of directors, managers, vendors, and suppliers of an organization should work while fulfilling their obligations to shareholders. For the success of corporate governance, it is important to clearly define and communicate the organization's business strategies to its stakeholders and the means of achieving those business goals to them. Technology alone may not help an organization in achieving its goals, but appropriate application of technology would certainly benefit it.

Overview of IT Governance

During the past two decades, the use of IT in organizations has been growing. The IT department, which was earlier viewed as an area which just added to the costs, is now being given prominence and IT is viewed as a key driver for achieving business growth and success. In the 1990s, organizations began implementing IT solutions like CRM and ERP to remain competitive. The IT departments of these organizations were under constant pressure to implement the projects quickly and this more often than not, resulted in errors in implementation. Besides, though the organizations incurred huge costs in trying to implement these projects, they were unable to derive the true benefits of IT implementation. Embracing new technologies also created security and privacy problems for them. IT governance was the answer to all these problems.

IT governance consists of relationships and processes that direct and manage an organization, help it to achieve its business goals, and generate value for its investments in IT, while minimizing the risks. IT governance calls for a clear definition and communication of corporate strategy. Its structures vary significantly. In some cases, the IT decisions are taken by corporate executives or IT executives and in others, the power is given to the respective business unit leaders. However, IT governance states that IT decisions should be taken by the board rather than by the chief information officer (CIO) or the business unit managers.

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