Information Systems

Management: Key
Principles and Practices

Course 1: IS/IT Governance

Module 1.2: IT Alignment
Module Overview and Goals
1. Define IT Governance and
Understand its Significance
2. A Framework for IT
Governance
3. Operating Model and the
Maturity of Enterprise
Architecture

© Gautam Ray, 2018

Lesson Overview and Goals
• A Framework for IT
Governance
1. Explore key decisions

© Gautam Ray, 2018

Framework for IT Governance
Institute of Internal Auditors (IIA)
“The leadership, organizational structures,
and processes that ensure that the
enterprise's information technology supports
the organization's strategies and objectives.”
1. What decisions need to be made?
2. Who makes those decisions?
3. How they make those decisions?

© Gautam Ray, 2018

 Key Decisions
Decisions Description
IT Principles Enterprise level objectives for IT – what is the role of IT.
Business Principle: Economy of Scale and Operational Efficiency <->
IT Principle: Standardized Business Processes
IT Architecture The organizing logic for process, applications, data, and infrastructure. The
requirements for process standardization and data integration.
IT Servers, desktops, networks, databases, and common applications. What
Infrastructure shared infrastructure service needs to be provided.
Business Software application that directly serve business needs. Which business
Applications requirements need IT applications at the corporate and BU level.
IT Investment How much to invest in IT? Which IT projects to fund?

© Gautam Ray, 2018

 Key Decisions
Decisions Description
IT Principles Enterprise level objectives for IT – what is the role of IT.
Business Principle: Economy of Scale and Operational Efficiency <->
IT Principle: Standardized Business Processes
IT Architecture The organizing logic for process, applications, data, and infrastructure. The
requirements for process standardization and data integration.
IT Servers, desktops, networks, databases, and common applications. What
Infrastructure shared infrastructure service needs to be provided.
Business Software application that directly serve business needs. Which business
Applications requirements need IT applications at the corporate and BU level.
IT Investment How much to invest in IT? Which IT projects to fund?

© Gautam Ray, 2018

 Key Decisions
Decisions Description
IT Principles Enterprise level objectives for IT – what is the role of IT.
Business Principle: Economy of Scale and Operational Efficiency <->
IT Principle: Standardized Business Processes
IT Architecture The organizing logic for process, applications, data, and infrastructure. The
requirements for process standardization and data integration.
IT Servers, desktops, networks, databases, and common applications. What
Infrastructure shared infrastructure service needs to be provided.
Business Software application that directly serve business needs. Which business
Applications requirements need IT applications at the corporate and BU level.
IT Investment How much to invest in IT? Which IT projects to fund?

© Gautam Ray, 2018

 Key Decisions
Decisions Description
IT Principles Enterprise level objectives for IT – what is the role of IT.
Business Principle: Economy of Scale and Operational Efficiency <->
IT Principle: Standardized Business Processes
IT Architecture The organizing logic for process, applications, data, and infrastructure. The
requirements for process standardization and data integration.
IT Servers, desktops, networks, databases, and common applications. What
Infrastructure shared infrastructure service needs to be provided.
Business Software application that directly serve business needs. Which business
Applications requirements need IT applications at the corporate and BU level.
IT Investment How much to invest in IT? Which IT projects to fund?

© Gautam Ray, 2018

 Key Decisions
Decisions Description
IT Principles Enterprise level objectives for IT – what is the role of IT.
Business Principle: Economy of Scale and Operational Efficiency <->
IT Principle: Standardized Business Processes
IT Architecture The organizing logic for process, applications, data, and infrastructure. The
requirements for process standardization and data integration.
IT Servers, desktops, networks, databases, and common applications. What
Infrastructure shared infrastructure service needs to be provided.
Business Software application that directly serve business needs. Which business
Applications requirements need IT applications at the corporate and BU level.
IT Investment How much to invest in IT? Which IT projects to fund?

© Gautam Ray, 2018

What: Five IT Decision Types

IT Infrastructure
Strategies
IT Architecture

Technical Hybrid Managerial

© Gautam Ray, 2018

What: Five IT Decision Types

IT Principles
IT Infrastructure
IT Investment
Strategies
and Prioritization
IT Architecture

Technical Hybrid Managerial

© Gautam Ray, 2018

What: Five IT Decision Types

IT Principles
IT Infrastructure
IT Investment
Strategies
and Prioritization
IT Architecture
Business Application Needs

Technical Hybrid Managerial

© Gautam Ray, 2018

Image Credits
Image/Source Copyright Location Notes
Key Decisions, Who Makes the Weill, P., & Ross, J. (2005). A matrixed approach to designing Slide 5-9
Decisions IT governance. MIT Sloan Management Review, 46(2), 26.