Information Systems

Management: Key
Principles and Practices

Course 1: IS/IT Governance

Module 1.2: IT Alignment
Lesson Overview and Goals
• A Framework for IT
Governance
1. Explore key decisions
2. Identify decision makers

© Gautam Ray, 2018

 Who Makes the Decisions
Archetype Who has decision rights
Business Business Executives (may include CIO). Excludes IT making decision
Monarchy independently.
IT Monarchy Individual or group of IT executives.
Feudal Business Unit Leaders, Line Managers.
Federal C-level executives and business units together decide. May include IT
executives as additional participants. Equivalent to Central and State
Governments working together.
IT Duopoly IT and Business (CXO, or Business Unit Leaders)
Anarchy Each individual user.

© Gautam Ray, 2018

 Who Makes the Decisions
Archetype Who has decision rights
Business Business Executives (may include CIO). Excludes IT making decision
Monarchy independently.
IT Monarchy Individual or group of IT executives.
Feudal Business Unit Leaders, Line Managers.
Federal C-level executives and business units together decide. May include IT
executives as additional participants. Equivalent to Central and State
Governments working together.
IT Duopoly IT and Business (CXO, or Business Unit Leaders)
Anarchy Each individual user.

© Gautam Ray, 2018

 Who Makes the Decisions
Archetype Who has decision rights
Business Business Executives (may include CIO). Excludes IT making decision
Monarchy independently.
IT Monarchy Individual or group of IT executives.
Feudal Business Unit Leaders, Line Managers.
Federal C-level executives and business units together decide. May include IT
executives as additional participants. Equivalent to Central and State
Governments working together.
IT Duopoly IT and Business (CXO, or Business Unit Leaders)
Anarchy Each individual user.

© Gautam Ray, 2018

 Who Makes the Decisions
Archetype Who has decision rights
Business Business Executives (may include CIO). Excludes IT making decision
Monarchy independently.
IT Monarchy Individual or group of IT executives.
Feudal Business Unit Leaders, Line Managers.
Federal C-level executives and business units together decide. May include IT
executives as additional participants. Equivalent to Central and State
Governments working together.
IT Duopoly IT and Business (CXO, or Business Unit Leaders)
Anarchy Each individual user.

© Gautam Ray, 2018

 Who Makes the Decisions
Archetype Who has decision rights
Business Business Executives (may include CIO). Excludes IT making decision
Monarchy independently.
IT Monarchy Individual or group of IT executives.
Feudal Business Unit Leaders, Line Managers.
Federal C-level executives and business units together decide. May include IT
executives as additional participants. Equivalent to Central and State
Governments working together.
IT Duopoly IT and Business (CXO, or Business Unit Leaders)
Anarchy Each individual user.

© Gautam Ray, 2018

 Who Makes the Decisions
Archetype Who has decision rights
Business Business Executives (may include CIO). Excludes IT making decision
Monarchy independently.
IT Monarchy Individual or group of IT executives.
Feudal Business Unit Leaders, Line Managers.
Federal C-level executives and business units together decide. May include IT
executives as additional participants. Equivalent to Central and State
Governments working together.
IT Duopoly IT and Business (CXO, or Business Unit Leaders)
Anarchy Each individual user.

© Gautam Ray, 2018

Different Ways of Deciding
• Federal: Corporate
and BU with or
without IT
•Business • Feudal – each
• IT Duopoly - IT BU or
Monarchy
and one other group geography
•IT (i.e., Top Mgmt or decides
Monarchy BU) independently

Centralized Hybrid Decentralized

© Gautam Ray, 2018

Different Ways of Deciding
• Federal: Corporate
and BU with or
without IT
•Business • Feudal – each
• IT Duopoly - IT BU or
Monarchy
and one other group geography
•IT (i.e., Top Mgmt or decides
Monarchy BU) independently

Centralized Hybrid Decentralized

© Gautam Ray, 2018

Different Ways of Deciding
• Federal: Corporate
and BU with or
without IT
•Business • Feudal – each
• IT Duopoly - IT BU or
Monarchy
and one other group geography
•IT (i.e., Top Mgmt or decides
Monarchy BU) independently

Centralized Hybrid Decentralized

© Gautam Ray, 2018

Decision Making in the SIM 2017 Survey

© Gautam Ray, 2018

Decision Making in the SIM 2017 Survey

© Gautam Ray, 2018

Decision Making in the SIM 2017 Survey

© Gautam Ray, 2018

Decision Making in the SIM 2017 Survey

© Gautam Ray, 2018

Decision Making in the SIM 2017 Survey

© Gautam Ray, 2018

Decision Making in the SIM 2017 Survey

© Gautam Ray, 2018

 Level of
Centralization

© Gautam Ray, 2018

 Level of
Centralization

© Gautam Ray, 2018

Who DOES the CIO Report To?

© Gautam Ray, 2018

Who SHOULD the CIO report to?

CEO CIO-CEO with

Differentiation

CIO
Reporting

CFO

Differentiation Cost leadership

Strategic Positioning

© Gautam Ray, 2018

Who SHOULD the CIO report to?

CEO CIO-CEO with

Differentiation

CIO
Reporting
CIO-CFO with
Cost
CFO Leadership

Differentiation Cost leadership

Strategic Positioning

© 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 3-8
Decisions IT governance. MIT Sloan Management Review, 46(2), 26.
Decision Making in the SIM 2017 Kappelman, L., Johnson, V., McLean, E., & Maurer, C. (2018). Slide 12-17
Survey The 2017 SIM IT Issues and Trends Study. MISQ Exec, 17(1),
53-88.
Level of Centralization, Who does the Kappelman, L., Johnson, V., McLean, E., & Maurer, C. (2018). Slide 18-20
CIO Report To? The 2017 SIM IT Issues and Trends Study. MISQ Exec, 17(1),
53-88.
Who Should the CIO Report To? Banker, R. D., Hu, N., Pavlou, P. A., & Luftman, J. (2011). CIO Slide 21-22
reporting structure, strategic positioning, and firm
performance. MIS quarterly, 35(2), 487-504.