To understand the IT Governance definition and usage. First, we have to address the concept of Corporative Governance.
Corporative Governance is the system through which societies and corporations are managed, administrated and monitored, regarding the professional relations between shareholders, administrative council, board, fiscal council and independent auditing, aiming to increase the society value, ease the access to the capital and ensure the long life of the company.
The need that organizations have to adopt Corporative Governance policies grew in the same measure in which, through time, the complexity of business processes increased. It is mainly in companies that are publicly held, since the fact that they negotiate their shares created a bigger need for organizational transparency so that shareholders and investors could be sure that their money was being well administrated.
With the technology advance, mostly informatics, the companies started to save their information (financial or not) in computer systems, and that is where the IT Governance definition enters.
IT Governance definition makes sure that transparency and credibility are valued in information and processes.
In the current corporative scenario, IT Governance is an integral part and a crucial ally to Corporative Governance. It has a highlighted paper on the elaboration of strategies and definition of organization’s goals.
IT Governance definition is about the structured association of a set of guidelines, responsibilities, competencies and abilities, all that shared and undertaken inside the companies by executives, managers, technicians and IT users. Also, it’s about aiming to control the processes, ensure the safeness of information, optimize the resource application and give support to the decision making process. All that aligned with the vision, mission and strategic goals of the organizations.
This IT Governance definition leaves clear the importance of itself, showing that it is not only a support area to the business processes but an essential part of the strategic planning context of large enterprises.
Also see: how to cut costs in the business.
The five focus areas of IT Governance in companies:
- Strategic alignment: IT Governance ensures that the business processes and the IT processes work together.
- Value deliver: important benefit from IT Governance, makes sure that the technology sector of the company efficient and efficacy.
- Risks management allows the company to visualize eventual risks to the business widely and provides ways to minimize them.
- Resource management assures that the human and technological resources management be highly optimized.
- Development measurement: using indicators that go way beyond financial resources, IT Governance definition ensures a precise and reliable measurement of the business results.
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