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Management Information
Systems
Corporate governance of
IT
Group members
• Salman Mahboob
• M. Osman Hasan
Contents
• Corporate governance
• Introduction
• Background
• Difference between IT governance and IT management
• IT governance constraints
• Principles of IT governance
• Frameworks
• ISO
• CMM
• COBIT
• Recommendations
Corporate governance
Corporate governance is the set of processes,
customs, policies, laws, management practices
and institutions affecting the way an entity is
controlled and managed.
Corporate governance of IT
IT Governance is actually a part of the overall
Corporate Governance Strategy of an
organization
Its implementation of processes, structures and
relational mechanisms in the organization that
enable both business and IT people to execute
their responsibilities in support of business/IT
alignment and the creation of business value
from IT-enabled business investments.
Introduction
• It highlights the importance of value creation
and accountability for the use of information
and related technology and establishes the
responsibility of the governing body, rather
than the chief information officer or business
management.
Primary goals of Corporate
governance IT
Assure that the use of information
and technology generate business
value
Oversee management's
performance
Mitigate the risks associated with
using information and technology
Background
• Information technology governance first
emerged in 1993 as a derivative of
corporate governance and deals primarily
with the connection between an
organization's strategic objectives,
business goals and IT management within
an organization.
Difference between IT governance
and IT management
• IT management is focused on the effective
and efficient internal supply of IT services and
products and the management of present IT
operations
• Corporate Governance of IT concentrates on
performing and transforming IT to meet
present and future demands of the business
(internal focus) and business customers
(external focus)
IT governance constraints
• Senior Management Not Engaging
• Poor Strategic Alignment
• Lack Of Project Ownership
• Poor Risk Management
• Ineffective Resource Management
INEFFECTIVE IT GOVERNANCE
• Senior management senses low value from
investments made in IT
• The IT decision-making mechanisms are slow or
contradictory
• Some outsourcing decisions result simply from
frustration with IT.
• The inability to explain how IT is governed in an
organization – especially senior management’s ability
to explain it.
• IT is often a barrier to implementing new strategies.
Instead of being a strategic enabler, it limits the ability
to respond to new opportunities.
Frameworks
• ISO
• COBIT
• CMM
ISO
• is an international standard for Corporate
governance of information technology
published jointly by the International
Organization for Standardization (ISO) and the
International Electro technical Commission
(IEC).
ISO MODEL
IT Governance Implementation
Effective governance includes
• Decision-making structures
• Alignment processes
• Communication approaches
Principles for Good Corporate
Governance of IT
• Responsibility
• Strategy
• Acquisition
• Performance
• Conformance
• Human Behavior
CMM
• Capability Maturity Model (CMM) broadly
refers to a process improvement approach
that is based on a process model. The
Capability Maturity Model (CMM) is a way to
develop and refine an organization's
processes.
Structure
• Maturity Levels
• Key Process Areas
• Goals
• Common Features
• Key Practices
Levels
• Initial
• Repeatable
• Defined
• Managed
• Optimizing
COBIT
• Control Objectives for Information and
Related Technology is a framework created by
ISACA for information technology (IT)
management and IT governance. It is a
supporting toolset that allows managers to
bridge the gap between control requirements,
technical issues and business risks
COBIT components
• Framework: Organize IT governance objectives and good practices
by IT domains and processes, and links them to business
requirements
• Process descriptions: A reference process model and common
language for everyone in an organization. The processes map to
responsibility areas of plan, build, run and monitor.
• Control objectives: Provide a complete set of high-level
requirements to be considered by management for effective control
of each IT process.
• Management guidelines: Help assign responsibility, agree on
objectives, measure performance, and illustrate interrelationship
with other processes
• Maturity models: Assess maturity and capability per process and
helps to address gaps.
Use Of COBIT In International
Firms
•Thank you

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Corporate governance of INFORMATION TECHNOLOGY (IT)

  • 2. Group members • Salman Mahboob • M. Osman Hasan
  • 3. Contents • Corporate governance • Introduction • Background • Difference between IT governance and IT management • IT governance constraints • Principles of IT governance • Frameworks • ISO • CMM • COBIT • Recommendations
  • 4. Corporate governance Corporate governance is the set of processes, customs, policies, laws, management practices and institutions affecting the way an entity is controlled and managed.
  • 5. Corporate governance of IT IT Governance is actually a part of the overall Corporate Governance Strategy of an organization Its implementation of processes, structures and relational mechanisms in the organization that enable both business and IT people to execute their responsibilities in support of business/IT alignment and the creation of business value from IT-enabled business investments.
  • 6. Introduction • It highlights the importance of value creation and accountability for the use of information and related technology and establishes the responsibility of the governing body, rather than the chief information officer or business management.
  • 7. Primary goals of Corporate governance IT Assure that the use of information and technology generate business value Oversee management's performance Mitigate the risks associated with using information and technology
  • 8. Background • Information technology governance first emerged in 1993 as a derivative of corporate governance and deals primarily with the connection between an organization's strategic objectives, business goals and IT management within an organization.
  • 9. Difference between IT governance and IT management • IT management is focused on the effective and efficient internal supply of IT services and products and the management of present IT operations • Corporate Governance of IT concentrates on performing and transforming IT to meet present and future demands of the business (internal focus) and business customers (external focus)
  • 10. IT governance constraints • Senior Management Not Engaging • Poor Strategic Alignment • Lack Of Project Ownership • Poor Risk Management • Ineffective Resource Management
  • 11. INEFFECTIVE IT GOVERNANCE • Senior management senses low value from investments made in IT • The IT decision-making mechanisms are slow or contradictory • Some outsourcing decisions result simply from frustration with IT. • The inability to explain how IT is governed in an organization – especially senior management’s ability to explain it. • IT is often a barrier to implementing new strategies. Instead of being a strategic enabler, it limits the ability to respond to new opportunities.
  • 13. ISO • is an international standard for Corporate governance of information technology published jointly by the International Organization for Standardization (ISO) and the International Electro technical Commission (IEC).
  • 15. IT Governance Implementation Effective governance includes • Decision-making structures • Alignment processes • Communication approaches
  • 16. Principles for Good Corporate Governance of IT • Responsibility • Strategy • Acquisition • Performance • Conformance • Human Behavior
  • 17. CMM • Capability Maturity Model (CMM) broadly refers to a process improvement approach that is based on a process model. The Capability Maturity Model (CMM) is a way to develop and refine an organization's processes.
  • 18. Structure • Maturity Levels • Key Process Areas • Goals • Common Features • Key Practices
  • 19. Levels • Initial • Repeatable • Defined • Managed • Optimizing
  • 20.
  • 21. COBIT • Control Objectives for Information and Related Technology is a framework created by ISACA for information technology (IT) management and IT governance. It is a supporting toolset that allows managers to bridge the gap between control requirements, technical issues and business risks
  • 22. COBIT components • Framework: Organize IT governance objectives and good practices by IT domains and processes, and links them to business requirements • Process descriptions: A reference process model and common language for everyone in an organization. The processes map to responsibility areas of plan, build, run and monitor. • Control objectives: Provide a complete set of high-level requirements to be considered by management for effective control of each IT process. • Management guidelines: Help assign responsibility, agree on objectives, measure performance, and illustrate interrelationship with other processes • Maturity models: Assess maturity and capability per process and helps to address gaps.
  • 23. Use Of COBIT In International Firms