Way back in the 1970s, the US government had come up with corporate governance to prevent fraudulent activities. But, as time passed by, it was a necessity to ensure proper IT guidelines. Through the years, organizations have gathered together to develop a robust framework. If an unclear IT governance framework is not present, then there will be poor data management practices. Compliance risks are also likely to arise in the absence of a framework. So, in this article, we shall cover more about IT governance in digital transformation.
What Is IT Governance?
When a set of processes is followed to ensure the necessity of IT investments, it refers to IT governance. While companies pace ahead with their business, the frameworks are designed to mitigate risks. These can arise due to improper data management. Leveraging technology in an unsuitable manner can also lead to risks. Moreover, when companies present an IT governance framework, it helps business leaders to make the right decisions. These have to be taken when there’s a need to invest in technology. On the other hand, the IT governance framework also ensures compliance and supports business growth.
Why Do Companies Need a Strategy around IT Governance?
In today’s world, companies need an IT governance strategy for some reasons. Once everything is managed properly, the practices can boost business performance and security in the digital landscape. Let’s now go through the reasons for coming up with an IT governance strategy.
Risk Mitigation
While IT governance lays down protocols for monitoring systems, it helps detect security threats. This, in turn, drives IT teams to find a solution to mitigate risks. Regulatory compliance is also maintained with an IT governance strategy. For example, the HIPAA sets certain standards for data management in the healthcare sector. In contrast, PCI is laid with the aim to regulate security for numerous financial transactions.
Resource Management
With IT governance in innovation, companies can assess projects across different aspects. Apart from enabling proper software asset management, teams can determine the workflow. Eventually, this aspect prevents utilizing resources more than the usual extent. Thus, the project is executed with the budget in mind.
Alignment with Business Goals
All IT projects are executed within the organization with a purpose in mind. Hence, by presenting an IT framework, companies can ensure that the initiative is in sync with the goals. While teams will be able to set project timelines, they can also perform without compromising on quality.
Regulatory Compliance
When industries are concerned about handling sensitive data, they have to follow some regulations. So, when enterprises develop IT governance in digital transformation, it can ensure compliance with essential standards. This reduces the occurrences of legal setbacks and delays.
Financial Accountability
IT governance frameworks ensure that the budget is set with a strategic approach. Once transparency is maintained, the framework also enables companies to enhance the returns on investment. Professionals will also not experience improper management in the finance department.
Disaster Recovery
An IT governance strategy supports business continuity in case of a disaster. This, in turn, mitigates downtime when the operations get disrupted suddenly. Through diverse protocols, companies can also reduce financial losses. When data is managed properly, the strategy can also prevent considerable data loss.
Consistent Performance
With clear standards in place, stakeholders and IT departments can be in sync with specific expectations. By aligning with the expectations, teams can also improve the ability of making decisions. This consistency is crucial when companies are undergoing a digital transformation. Besides, the governance standards help maintain maximum performance across different projects.
What are the different types of IT Governance Frameworks?
There are many IT governance frameworks that enable effective management. Let’s now check the frameworks ahead.
COBIT (Control Objectives for Information and Related Technologies)
Developed by ISACA, COBIT is the most commonly adopted governance framework. Such a type of framework offers a set of best practices to ensure that the IT investments support goals. Moreover, COBIT focuses on delivering IT services along with governance.
ITIL (Information Technology Infrastructure Library)
The ITIL is nothing but a framework that focuses on IT service management. While the framework offers guidelines for service management, they are aligned with the business needs. With time, ITIL has also evolved to deliver services efficiently.
ISO/IEC 27001 (Information Security Management System)
The ISO/IEC 27001 is popularly known as an international standard for managing security risks. Once companies start managing sensitive information, they follow a systematic approach. In addition, the standard is used for establishing a robust framework in terms of security.
CMMI (Capability Maturity Model Integration)
CMMI is a process improvement framework that offers guidance in improving the maturity of IT processes. Beyond this, CCMI also offers a set of practices for managing software development and the ongoing projects. Ultimately, the model helps to improve IT governance significantly.
TOGAF (The Open Group Architecture Framework)
TOGAF is known to be an enterprise architecture methodology that offers an approach to govern IT architectures. The framework also helps companies to align IT infrastructure to ensure that the IT systems are integrated properly.
What mistakes must you avoid during IT governance in digital transformation?
When you’re implementing IT governance, companies have to follow best practices. Mistakes must also be avoided because they can impact governance. Let’s now check the mistakes you must avoid committing.
Failing to evolve in the future
Many organizations, currently, perceive IT governance as a static process. But, as business goals keep changing, the framework must also evolve. Once professionals go through the governance protocols, they can be aligned with business goals.
Introducing IT governance later
As companies plan for risks, IT governance must be considered at an early phase. This is because the framework offers various policies to manage IT-related risks. Operational inefficiencies can thereby be prevented after incorporating IT governance. Ultimately, companies can ensure compliance with certain standards and enhance security practices.
Lack of IT operations visibility
When professionals fail to observe IT operations closely, it can prevent business leaders from seeking wasted resources. The leaders will also not be able to identify inefficiencies across various departments. But, with a framework, stakeholders can know more about the operational activities.
Not aligning IT governance with the company’s GRC teams
To ensure consistency, Governance, Risk, and Compliance (GRC) functions should be properly aligned with IT governance. Way ahead, collaborations along with alignment will help maintain a unified approach. Professionals will then be able to find appropriate solutions for risks across the company.
Keeping track of lagging indicators
When teams rely on lagging indicators, companies may not get a clear idea of the potential risks. Instead, if the team focuses on leading indicators, then professionals can act proactively. In contrast, maintaining a balance between both the indicators can help track progress. Professionals can also address issues before they face consequences.
Conclusion
Finally, if you wish to learn more about IT governance in innovation, then why not join the program by IMET Worldwide? While designing the program, we have included some modules that can help develop practical skills. The accelerated program can also help you comprehend more about management strategies and frameworks. Once you complete the course, you will be able to manage IT resources effectively.
