IT governance is higher up on the radar of corporate boards
As the world moves into the digital era, businesses make the
final step on a journey for IT transformation - from
where IT is merely automated parts of the back office, to where IT is the business
and nothing happens without the IT. It's now a non-negotiable situation -
business leaders and Board directors must address IT as an integral part of
business, and brainstorm upon how to enforce the weakest governance link –as
some say, IT governance is the most neglected aspect of corporate governance.
Establishing global
trends & standardization is one of the key considerations that boards must do: IT prevalence
and ubiquity in public, private and business life can neither be undermined nor
ignored. The crucial issue is to understand the USE of IT in the
organization and in its market ecosystem. IT gets insufficient attention in the
boardroom because IT still talks about it in technology terms rather than in
business terms, and because IT leaves the talking to the technologists who
supply and operate the technology and communicate through IT jargon, when the
talk should come from the business executives and IT leaders who, by managing
the business, manage the use of the technology.
IT governance is
higher up on the radar of corporate boards; More often, IT governance is the most neglected part of
corporate governance. The alarming feature of that is IT governance is a
critical part of corporate governance. A moment of honesty on whether the Board
truly understands the relationship between the IT functionality of your
operations and the company's strategic directions is crucial. As the
number of stories coming out about compromised IT systems and bad
infrastructure oversight suggests strongly that there's not enough budgets
being allocated to tighter systems and better training of the cadres of IT
engineers in charge of critical IT systems. You can't just implement a
monitoring system and think that you're done. Board directors should be
spending a little more time to understand the extension of the platform on which
their business processes depend and how to secure that.
Make the management
and the corporate board aware of the blunder of not involving IT in important decisions
and in not implementing IT Governance formally. If the Board does not
understand that, think of the potential cost to the company if corporate
strategy and IT strategy are not aligned. The cost of one person who can
ensure that alignment will be small cheese compared to the cost of non
achievement of strategic goals due to not having strategy and IT in sink with
one another and working in the same direction, with appropriate power and
capacity to meet demand. From communication perspective, the point about
talking IT in the board language is only partly correct. The talk about IT should
not just be in business language, it should be in business context and IT
should be discussed in exactly the same way as other critical resources - finance,
people, marketing., etc. And the head of IT must take on a similar role to the
heads of finance and HR - being trusted advisors to executive and board, rather than the leaders of the charge
into technology enabled change.
1 comments:
Hi there! Thanks for the great article. I strongly agree that business leaders should see IT as an integral part of their business. If IT management is the most neglected aspect of your business, I recommend Modern Office Methods momnet.com as an IT partner that is able to solve this issue professionally.
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