IT governance is an integral part of corporate governance that encompasses information technology (IT) leadership, organization, control and processes to ensure that IT supports corporate strategies and objectives. The ISO/IEC 38500 standard defines IT governance as an essential component of business processes in companies. The term information technology (IT) is very broadly defined and subsumes both the entire infrastructure as well as the capabilities and organization that support IT.
The central importance of IT governance is also derived from the fact that responsibility within an organization is generally ascribed to the executive board and management as essential components of corporate management.
The aim is to consistently align a company's IT processes with its corporate strategy. To that end, IT must be integrated into a uniform framework, analogous to the governance of the company as a whole, which is oriented toward corporate strategy, supporting and operationalizing it in the best possible way.
That means optimally designed IT governance integrates two core objectives for the use of information technology:
a. Achieving corporate goals and increasing corporate values
b. Minimizing IT-risks (risk management)
Because IT governance combines both performance and compliance aspects, it must be considered in terms of efficiency, costs and risk and operationalized just as professionally as any other critical success factor companies face.
Optimally designed, governance can contribute significantly to a company's success in terms of value:
- Improved efficacy of a company’s compliance organization
- Support for competitive alignment according to corporate strategy
- Cost control and improvement of process efficiency
- Improved management efficacy
- Efficient control and prioritization of IT activities and resources
SKS can help you operationalize these requirements across multiple levels
The IT governance framework can be defined on the following three levels:
1. IT Governance
Creating an organizational framework for IT and defining its tasks across the following five fields of action:
- Aligning the IT strategy with the strategic alignment of the company
- Delivering the value added of IT and measuring success
- Resource management for the efficient use of existing resources
- Risk identification and management
- Measuring performance in terms of the fields of action mentioned above
2. IT Management
While IT governance focuses on the responsibilities of IT and its ability to contribute to achieving corporate goals, IT management focuses on planning, organizing and controlling IT resources, i.e. operationalizing the use of those resources.
IT management impacts the following decision fields:
- Infrastructure & technology
- IT Management
- IT Strategy
- IT Security
- Information & Organisation
- Service and Sourcing Management
3. IT Operations
IT Operations as a field of action deals with the design of operative processes and control frameworks. Implementing these frameworks entails meeting the regulatory requirements for IT (IT compliance) as well and should be based on both relevant standards and best practices (ITIL, COSO and COBIT).
SKS has extensive experience with operationalizing and implementing IT processes and controls (ICS) and is here to help you implement a meaningful and efficient solution. Our approach to implementing IT governance relies on internationally recognized frameworks such as COSO, ITIL and COBIT.