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IT Governance
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It is not surprising that a corporate or IT governance is largely debatable and dominant business topic nowadays (Weill & Ross, 2013). That is why there is such a significant number of the guidelines published on the issue. Anyway, it is highly important that these guidelines are being applied properly. The board of the organization is considered to be responsible for the implementation of these guidelines and principles (Weill & Ross, 2013). Nevertheless, the principles may vary considering the organization approaches. The application of the particular organization approach predetermines the principles a board is being guided by.
Verizon It Governance organizational model
According to the Grembergen (2004), nowadays, in order to provide the
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Both centralization and decentralization organization approaches possess advantages and disadvantages. The centralization approach is characterized by “better recruitment and training of IT specialists”, and “better control of security and databases” while decentralization approach is characterized by “closer partnership between IT and business units” and “greater flexibility” (Pearlson & Saunders, 2012). Talking about the disadvantages of centralization approach, “slow support for strategic initiatives” should be mentioned (Pearlson & Saunders, 2012). The decentralization approach suffers from the loss of …show more content…
It has to be mentioned that the federal IT Governance model is still being considered a kind of innovation (Grembergen, 2004). Due to the number of particular reasons, it is considered to be better to contemplated than implemented (Grembergen, 2004). It is considered that local business units managers struggle to “surrender control over certain business-specific IT domains”, and to “develop business-to-business and business-to-IT partnerships” (Grembergen, 2004, 47).
The federal IT Governance model is good because it “enables IT-based strategic differentiation of business” (Hakikur, 2007, 259). However, there is an opinion that federal IT Governance model “is more of a theoretical construction, than a direct practical solution” (Hakikur, 2007, 259). Though it is claimed that the practical application of the federal IT Governance model is quite doubtful, this claim is quite justifying. According to Hakikur (2007), it turns out that “local IT units tend to be `captured` by the goals of the business unit, while the central IT unit tends to become divorced from the business”
In his 2003 article ‘IT Doesn’t Matter’, Nicholas Carr charts the evolution of Information Technology from the invention of the microprocessor in 1968 to present day omnipresence of IT solutions. His bone of contention with IT is not concerned with its widespread presence, but the magnified costs involved in the upkeep of IT infrastructure. He wants to bulldoze the myth that increased IT spending will culminate in higher returns and better profits. Acknowledging that though “Information technology has become the backbone of commerce” (Carr, 2003), he notes that its omnipresence works against its strategic advantage.
Iskandar, M., & Salleh, N. A. M. (2010). IT Governance in Airline Industry: A Multiple Case Study. International Journal of Digital Society, 1(4), 308-314.
Information Technology (IT) is a foundation for conducting business today. It plays a critical role in increasing productivity of firms and entire nation. It is proven that firms who invested in IT have experienced continued growth in productivity and efficiency. Many companies' survival and even existence without use of IT is unimaginable. IT has become the largest component of capital investment for companies in the United States and many other countries.
Corporate governance implies governing a company/organization by a set of rules, principles, systems and processes. It guides the company about how to achieve its vision in a way that benefits the company and provides long-term benefits to its stakeholders. In the corporate business context, stake-holders comprise board of directors, management, employees and with the rising awareness about Corporate Social Responsibility; it includes shareholders and society as well. The principles which...
They need an IT network that could scale up to match the size of the organization it projected to become in few years. There is a problem of scalability in their system. Their IT infrastructure is further complicated by incompatible IT system it has inherited through acquisitions and as a result it is facing need of huge IT investment to get things in right place.
Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
This debate on the optimal IT regulation is due, in part, to the fact that th...
Henderson and Venkatraman proposed a model for business – IT alignment; it was intended to support the integration of information technology (IT) into business strategy by advocating alignment between and within four domains (see figure 1). The inter-domain alignment is pursued along two dimensions: strategic fit (between the external and internal domain) and functional integration (between the business domain and the IT domain). The objective of this model was to provide a way to align information technology with business objectives in order to realise value from IT investments. The authors argued that the potential strategic impact of information technology requires both an understanding of the critical components of IT strategy and its role in supporting and shaping business strategy decisions and a process of continuous adaptation and change. Hence, they presented a model that defines the range of strategic choices facing managers.
In like contrast, such occurrence carries over several divisions such small business administration (SBA), which has for the better part, integrated IT systems and architecture structures as part of the technological advancement. However its vulnerable implementation has left most operational ...
One main apprehension that they have against Information System is the high investment cost. In addition to this there is the high maintenance and upgrade costs associated with the deployment of new IT systems. In fact they prefer to outsource the heavy IT department expenditures to other companies having IT as their core activities. In return they expected to receive a full solution pack to meet their requirements and they are ready to pay these IT services as an operating cost. At the same time the risks associated with IS are being shifted to the other
Top companies need to develop a strong performance anatomy which allows them to continually pursue customer-valued innovations and differentiate from the competitors. And an increasingly important component of this strong performance anatomy is the company’s IT capability which allows a business focussed on high performance to create and act on customer and business insights in real time, create new products and services and transform business models. Likewise a strong and proactive IT governance model is also important which insures that business leaders are involved in planning and aligning IT initiatives with business priorities which is well understood by Accenture. And the company’s IT governance demands are particularly heavy as well being a heavily matrixed organization with five operating groups, 17 focused industry grou...
Perry, B., 2005, Organisational Management and Information Systems. [e-book] Oxford; Elsevier. Available at: Google Books . [Accessed 14 November 2013]
Traditional organizational Structure Is known as called a hierarchical structure is similar to a managerial pyamid where the hierarchy of decision making and authority goes from the strategic management at the top down to operational management and non-management employees. (Techrepublic, 2015) Challenges In spite the fulfilment of many Internet-based applications, health care company can look forward to face many problems as they try to apply these technologies to acquire their strategic visions. They will face obstruction to, and restrain on, organizational alter, as well as being unsure about the efficacy and effects of Internet-based applications. Opposition to alter can come from refusal of the need to alter, the lack to manage alter,
K, . N., ER, w., DAVID, K., PAUL, M., WALTER, O., & EVANS, A. (2012). Corporate governance theories and their application to boards of directors: A critical literature review . Prime Journal of Business Administration and Management (BAM), 2(12)(2251-1261), 782-787.