MEJOS, Elaine Mae M.

14-0182c
BSAccountancy IV Auditing in CIS Environment

ACTIVITY 4

I.T. GOVERNANCE

- the processes that ensure the effective and efficient use of IT

in enabling an organization to achieve its goals. IT demand governance
(ITDG—what IT should work on) is the process by which organizations
ensure the effective evaluation, selection, prioritization, and
funding of competing IT investments; oversee their implementation; and
extract (measurable) business benefits. ITDG is a business investment
decision-making and oversight process, and it is a business management
responsibility. IT supply-side governance (ITSG—how IT should do what
it does) is concerned with ensuring that the IT organization operates
in an effective, efficient and compliant fashion, and it is primarily
a CIO responsibility.

SIGNIFICANCE OF I.T. GOVERNANCE

IT governance creates clarity between business goals and IT projects.

Below are the significance of I.T. Governance in business
organizations.

1. Clearly understanding the business strategy and aligning the

technology strategy with the business strategy.
2. Providing clarity between the business strategy and the IT
initiatives – drawing the links between business objectives and
project objectives.
3. Providing clarity through the preparation of a business case for
each initiative – it is not enough just to create the links but
also to help build the case as to how the project will improve
the business capabilities.
4. Attaining agreement on priorities – as a group looking at the
entire enterprise, it is making a determination as to what
initiatives move forward.
5. Attaining agreement on which priorities should finish first.
6. Understanding the resources necessary to accomplish the
initiatives – good governance establishes priorities on resources
– both human and financial.