Businesses of all sizes and sectors rely on technology for virtually all aspects of business operations. All technology investments must be considered carefully, to ensure they provide the most value and enable businesses to achieve their goals for growth and success.
While technology is essential, there is the potential for it to be underutilised or even abused, which can result in costly and serious consequences, such as loss of customers or stakeholders, business loss, and regulatory fines. IT governance can help to ensure organisations are benefiting from their technology investments while avoiding any potential issues.
IT governance definition
IT governance is the alignment of an effective IT strategy with business goals to improve IT management overall, resulting in greater value from digital technology in business. The decision-making and oversight processes involved in IT governance include assessing, selecting, prioritising IT investments, implementing and managing IT resources, and measuring IT’s contribution to business outcomes. Industries often employ a predefined framework to determine how these processes should be carried out, although some firms prefer a hybrid approach or customise a framework to match their unique needs and objectives.Why is IT governance important?
A lack of IT innovation and strategic planning can be to the detriment of businesses and lead to their failure. An effective governance policy will outline the roles and responsibilities of staff members, set standards for data collection and retention, outline protocols for data usage and sharing, and include data privacy and security framework. A solid governance policy will also provide a framework for an organisation to adapt to changes in the external business environment, changes in technology, and changes in staff composition.How do organisations benefit from IT governance?
An IT governance program is a structured approach to how an organisation manages its information technology assets to achieve its business objectives. It allows the company to track its assets, set policies, and monitor risk. An IT governance program will have several components including risk management, compliance, asset management, strategic procurement, vendor management, and so on. Benefits of IT governance include:- Ensuring unification of IT and business strategies and boosting existing business operations to enhance efficiency and processes.
- Promotes best practices in compliance and regulation, reassuring customers and other stakeholders of your aware business’s commitment to data protection and cyber security.
- Enables greater insight into business processes and creates opportunities for new technology to boost productivity and drive growth.
- Maximises investment return in your IT environment and ensures that no resources are wasted or offer inefficient solutions.
