Information technology (IT) governance refers to a framework, or frameworks, that manages how organizations optimize their use of IT operations to support business objectives.
Effective IT governance is a key component of overall business strategy and corporate governance as a governance, risk and compliance (GRC) policy. IT governance manages governance and risks while maintaining compliance with industry and government regulations. Optimizing IT governance requires the right mix of IT investments, policy and personnel. It helps organizations match their IT goals with business goals.
A comprehensive IT strategy with strong IT governance can streamline IT decision making, ultimately driving results against key business goals. It is increasingly a component of DevOps teams responsible for IT operations. DevOps teams work together more efficiently to create, test and deliver software.
As organizations increase their IT investments, the importance of a strong IT governance policy increases. Chief information officers (CIOs) drive IT governance strategy alongside other key stakeholders in the C-suite.
Maintaining strong IT governance helps organizations thrive in several key areas.
Disruptions to an organization’s IT processes affect the entire business. Therefore, organizations make resilience a core component of their IT governance processes. Organizations can orient their IT functions to maximize uptime and create proper backups and redundancies to keep the business moving.
Understanding the costs of IT resources and how they impact business growth is a key component of any CIO's job. While technology is an important component of any modern organization, CEOs want to know that various IT projects, initiatives and expenditures draw a direct line to achieving business goals.
The increased usage of customer data to drive business operations in enterprise IT means that governing agencies are more focused on how organizations run their IT departments. Organizations that have strong IT governance practices are less likely to run into compliance issues and therefore more able to focus on other areas of their business.
Organizations increasingly run on first- and third-party data, much of which is proprietary or contains private consumer information. Increasingly, bad actors are targeting organizations that collect this valuable data. IT risk management and mitigation are crucial; organizations can enact policies and procedures that protect their users. According to a CIO.com survey, CEOs place managing IT risk1 as the second greatest priority behind digital transformation.
Several governmental and nongovernmental organizations (NGOs) and private enterprises are responsible for setting and maintaining IT governance standards and guidelines.
There are several IT governance policies and procedures that many organizations follow.
Also known as COBIT, it is a framework of accepted practices and tools that minimize risk, introduce regulatory compliance and drives business goals.
A library of best practices, this framework helps organizations better manage their IT support and service. AXELOS is responsible for managing ITIL updates. The most recent, ITIL 4, was released in 20192 to include new tools and technologies, such as artificial intelligence and cloud computing.
This framework involves planning, implementing, managing and optimizing IT services to meet the needs of users and help organizations achieve their business goals. ITSM is to provide the optimal deployment, operation and management of every IT resource for every user across an enterprise. Users can include customers, employees or business partners.
IT resources can include any hardware, software or computing asset, such as a laptop computer, software application, cloud storage or a virtual server. In some organizations, DevOps is used in place of or as an alternative to ITSM. But many organizations see DevOps and ITSM as complementary: DevOps focuses primarily on speed and agility, and ITSM focuses on user and customer satisfaction.
This model, originally developed by the US Department of Defense, refers to an organization's software development process. Today’s CMMI models help organizations of all sizes build and measure the maturity of their IT operations and identify areas for improvement.
Generative AI is a major influence over every aspect of modern businesses, IT included. Organizations can need to rethink their IT governance policies in the age of AI, especially if they are thinking of using third-party tools such as ChatGPT or others. Generative AI as it is built today introduces several difficult questions around fair use, data privacy and confidence in the correctness of the results.
Organizations that embrace and adopt generative AI likely need to review their existing IT governance policies to see whether they need new rules for use of the technology. Also, generative AI might be a valuable tool in building IT governance policies, such as suggesting key components or asking questions the IT governance team might have.
1 CEOs’ top priorities for IT leaders today, CIO.com, 13 May 2024
2 What is ITIL? Your guide to the IT Infrastructure Library, CIO.com, 16 May 2022
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