IT Governance and Why it’s Important

  • August 28, 2020
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IT governance (ITG) serves as a framework that helps companies align their business strategies with their IT strategies. By adhering to established guidelines and best practices, organizations can achieve their goals, enhance business value, and optimize returns for stakeholders. The main objectives of ITG include:

  • Alignment: Ensuring that all IT services and development activities are aligned with the strategic goals of the organization.
  • Value Delivery: Focusing on improving IT systems to deliver measurable business value.
  • Risk Management: Controlling and mitigating all IT-related risks, including those associated with investments and operations.
  • Resource Management: Acquiring new IT resources and efficiently utilizing existing ones to meet current and future business objectives.

Importance of IT Governance

Here are key reasons why ITG is crucial for organizations:

  • Alignment and Responsiveness: Coordinating IT governance with portfolio management enhances the organization’s ability to respond to challenges and manage present and future IT investments effectively.
  • Objective Decision-Making: Effective governance enables leadership to better manage and oversee IT activities within the company.
  • Resource Allocation: Managing critical resources ensures effective planning and execution of IT initiatives, ensuring sufficient IT support for current and future investments.
  • Organizational Risk Management: Proactively managing risks ensures that IT managers and leaders understand and mitigate risks associated with IT initiatives, laying the foundation for implementing risk reduction strategies.
  • Execution and Oversight: Providing a structured framework enables managers to centrally organize and manage all IT initiatives and requirements, facilitating informed decision-making.
  • Accountability: Good governance promotes accountability, empowering managers to enforce IT program management responsibilities effectively.

Implementing IT governance enables organizations to align IT strategies with business objectives, enhance value delivery, manage risks, and optimize resource utilization effectively.

source: https://in.indeed.com/career-advice/career-development/what-is-it-governance