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IT Governance: Group 4: James Fort Stephanie Joyner Jeff Seremak

The document discusses IT governance, including its definition, importance, key areas of focus, and who is typically involved. IT governance helps align IT strategy with business strategy and focuses on strategic alignment, value delivery, resource management, risk management, and performance measures. It is important for compliance, competitive advantage, supporting enterprise goals, growth, innovation, and reducing risk. Teams leaders, managers, executives and board of directors, and stakeholders are typically involved in IT governance. The document then provides an example case study of how Harley Davidson implemented IT governance using the COBIT framework to improve controls and risk management while maintaining business value.

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Yoga Bayu Aji Pranawa
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252 views17 pages

IT Governance: Group 4: James Fort Stephanie Joyner Jeff Seremak

The document discusses IT governance, including its definition, importance, key areas of focus, and who is typically involved. IT governance helps align IT strategy with business strategy and focuses on strategic alignment, value delivery, resource management, risk management, and performance measures. It is important for compliance, competitive advantage, supporting enterprise goals, growth, innovation, and reducing risk. Teams leaders, managers, executives and board of directors, and stakeholders are typically involved in IT governance. The document then provides an example case study of how Harley Davidson implemented IT governance using the COBIT framework to improve controls and risk management while maintaining business value.

Uploaded by

Yoga Bayu Aji Pranawa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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IT Governance

Group 4:
James Fort
Stephanie Joyner
Jeff Seremak

What is IT Governance?
Structure to help align IT strategy with business strategy
According to ITGI, there are 5 areas of focus:
Strategic alignment
Value delivery
Resource management
Risk management
Performance measures

Why is IT Governance
important?
Compliance with regulations
Competitive advantage
Support of enterprise goals
Growth and innovation
Increase in intangible assets
Reduction of risk

Who is involved?
Team leaders
Managers
Executives
Board of Directors
Stakeholders

IT Governance Framework (ITGI)

Challenges and Concerns


Relative to It governance

Aligning IT and Business Strategy


Corporate Mission Business Goals IT Strategy
Requires involvement from many levels and activities
within the enterprise.
Lack of alignment leads to adverse business issues.
Strong IT Governance contributes toward proper
alignment.

Ensuring Value and Effectiveness

IT issues are the least understood, despite increasing


reliance placed on IT.
Initiate IT governance structures with the right level of
executive involvement.
Board of Directors require essential IT related skills

IS Governance
Consists of leadership, organizational structures and
processes that safeguard information.
Security over information assets.
Benefits of IS Governance.
IS is a top-down process.

Measuring IT Governance
Performance
Measuring IT performance is a key concern as it
demonstrates the effectiveness and added business
value of IT.
Commonly seen as the IT Black Hole costs
continually rise without clear evidence of value derived
from the IT function.

Traditional performance measurement methods require


monetary values which are hard to apply to IT systems.

IT Governance Performance
Management Approaches

IT Balanced Scorecard
One of the most effective means to aid an
organization in achieving IT and business
alignment.
Provides a systematic translation of the IT strategy
into tangible success factors and metrics.
Gives a balanced view of the value added by IT to
the business.
Calculating the value of IT investments is a
business issue for which business managers are
ultimately responsible for.

Harley Davidson IT
Governance Case Study

Harley Davidson IT

Harley Davidson is the oldest producer of motorcycles


and has achieved 20 consecutive years of record
growth. Until 2003, Harley Davidson focused solely
on manufacturing and selling high quality
motorcycles.
They realized that for continued growth, they must unite
management and the IT and Audit functions with a common
governance while maintaining their unique company culture.

Until 2003, Harley Davidson had limited IT controls in place and the
employees had limited knowledge of control and risk.
There were limited: Standardized user access processes, change
management processes or backup and recovery processes.
Harley Davidson created a new IT compliance department to manage
control and risk in the company.
This department implemented the COBIT framework to focus on key
value areas of the business.
Switched to a broad control framework rather than continually raising
the bar.

COBIT Control Objectives for Information and Related Technology


Harley Davidson chose COBIT because
An internationally accepted standard for IT governance and control
Provides a common language for management, end users and IT audit
professionals
A means for benchmarking controls compliance
Low implementation cost
Cohesiveness with other standards
External auditor signed off on the framework
It was important for management and IT to understand the importance of
effective, value-focused controls.
By focusing on IT business value and their control needs, COBIT provided a
tool to spur internal change while maintaining their position as an industry
leader.

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