- To ensure that the investment in ICT generates business value
- To mitigate/reduce risks associated with ICT. This can be done by implementing an organization structure which is well defined with regards to the roles of information business process, applications and infrastructure.
NB: The right decisions are a key concern of ICT governance. Depending on the size, scope and ICT absorption rate with an organization difference strategy can be adopted for ICT governance.
Before one can choose how to offer effective ICT governance, he/she may consider the following factors.
- The ICT functionality and risks present.
- Evaluation of the performance in terms of value addition by ICT to the business.
- Compliance- The legal and regulatory requirements.
ICT GOVERNANCE COMMITTEES
Two main committees used in ICT governance include: –
ICT Strategic committee (Deal with strategic plans)
- It focuses on the overall direction and strategy of the organization.
- It also advices the organization’s management on ICT strategy alignment with the organization’s goals.
- It suggests ways of optimizing ICT so as to reduce the costs and risks associated with ICT.
- To align ICT with business goals
- Optimize ICT
- Achieve strategic ICT objectives
ICT Steering committee
It focuses on the implementation, monitoring of current projects and deciding on ICT spending.
- To make decisions on whether ICT will be centralized or decentralize.
- To make recommendations for strategic planning.
- To approve ICT architectures
- To review and approve ICT plans, budget priorities and milestones.
- To monitor major projects and ensure they deliver the right performances.
ICT MANAGEMENT PRACTICES
Information Technology management represent an integral part of overall organization governance; it includes organization and leadership structures and processes that ensure that ensure that the company’s IT contributes to the achievement of business strategies and objectives.
The primary goal of a robust Information Technology management framework is to ensure that investment IT information and management produce real business value. It also seeks to mitigate IT risks, such as threats to cybersecurity and misalignment between IT professionals and business priorities.
Good IT management plays a much More important role that can be perceived in some corporate environments.
ACTIVITIES / FOCUS AREAS OF ICT GOVERNANCE
In practice ICT governance supports business by adding positive value through the use of ICT and minimizing ICT related risks. In order to achieve this, ICT governance has five principle focus areas: –
i. ICT strategic alignment.
ii. ICT value delivery
iii. Resource Management
iv. Performance Management
v. Risk Management
ALIGNING ICT STRATEGY WITH THE BUSINESS STRATEGY
ICT governance has the starting point in designing on ICT strategy according to the overall strategy of the organization. In particular ICT Governance tries to:
- Ensure ICT strategy is aligned with business needs
- Ensure ICT delivers against the strategy clear expectations according to the business objectives.
- Provide high level direction to create competitive advantage.
- Direct IT strategy by addressing the level and allocation of investment.
ICT VALUE DELIVERY
From the overall objective of corporate governance, the aim of the organization is to maximize on its wealth.
The implementation of new ICT techniques has to add value to the organization either by minimizing expenses or improving the quality of service delivery. This is often translated by customer satisfaction or employee’s productivity.
The IT governance practices for value delivery includes:
- Ensuring that ICT plans/Projects proceeds on schedule.
- Ensure completeness, quality and security of ICT investments.
- Monitor ICT investments for adequate returns.
- Ensure visible benefits through ICT services.
ICT resource management is concerned with the management of various ICT resources and infrastructure within an organization.
It is a critical dimension/point of the ICT governance process and aims at providing the best use of the various ICT resources so as to fit with the corporate and enterprise objectives.
Another important aspect considered under resource management is project management. Management of new ICT projects must be properly governed because these projects have an impact on the financial position and the strategic direction of the organization.
The ICT governance Practices on resource management.
- Allocate ICT resources in correlation with business priorities.
- Implement adequate controls which allow the organization to identify if the objectives have achieved by the infrastructure.
- Sustain an adequate investment in staff education, development and training on the ICT infrastructure, since without the right skills the ICT infrastructure cannot be used adequately.
It is concerned with determining whether ICT systems have achieved the goals set to them by the senior management.
ICT governance performance management practices includes: –
Define and monitors the measures to check whether objectives of ICT infrastructure have been achieved is not system isn’t important.
To measure Ict performance through matrix and adequate indicators as well as baseline.
Implementing ICT Governance framework allows an organization to balance the internal factors as well as external factors which includes: –
- The fact technological development.
- The degree of scrutiny and check for ICT project.
- Innovation and control over ICT.
- Up-to-Date infrastructure.