Yudho Giri Sucahyo, Ph.

D, CISA, CISM, CEP-PM, CSRS

yudho@cs.ui.ac.id
Faculty of Computer Science
Universitas Indonesia 1
¡ Key IT Governance Decisions
¡ IT Governance Archetypes
¡ Key Players
¡ How Enterprises Govern IT
¡ Typical Governance Arrangements
¡ Differences in IT Governance

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¡ Enterprises implement governance arrangements through
a set of governance mechanisms – structure, process,
communication.
¡ Good mechanisms promote desirable IT behaviors.
¡ Effective governance deploys three different types of
mechanisms:
§ Decision-making structures
▪ Organizational units for making IT decisions
§ Alignment processes
▪ Formal processes to ensure that daily behaviors are consistent with IT
policies
§ Communication approaches
▪ Announcements, advocates, channels, and education that disseminate IT
governance principles and policies 3
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Sumber: P. Weill and
J. Ross, IT
Governance: How Top
Performers Manage IT
Decision Rights for
Superior Results,
Harvard Business
School Press, 2004.

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¡ Org. Structure locates decision making
responsibilities according to intended archetypes
¡ Decision-making structures are the natural
approach to generating commitment.

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 Archetype Form Note
Business Executive Including CIO as a member enhanced
Monarchy Committee the ability to understand the role of IT
in business strategy.

Federal Executive - Balance enterprise and BU

Committee, priorities
Strategic - Shared data and IT infrastructures
Investment - Protect BU autonomy while
Committee developing standards for integrated
(chaired by CEO, business capabilities
includes the - Decision makers’ combined
CFO, CIO and expertise provides a holistic view of
business heads) the enterprise

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Archetype Form Note
IT Leadership Challenge: Resolving the
Team (IT different needs of BUs that
functional heads vary markedly in size and thus
or BU CIOs) power
IT
Monarchy Architecture - Defining standards and in
Committee some cases granting
(made up of exceptions
technical - To advise the IT Leadership
experts) Team on architectural issues

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 Archetype Form Note
IT Council The mix enables the team to
(representatives from align business strategy and IT in
both IT and business) making architecture,
infrastructure, and business app
decisions.
Process Team (made - Focus on process governance
up of process owners mechanisms
working with IT - Facilitate management of
Duopoly executives to make cross-functional and redirect
business app decisions) management focus from BU
to enterprise objectives.
Business/IT The managers play an important
Relationship role in communicating
Manager mandates and their implications
and supporting the needs of NU
managers to see benefits rather
than inconveniences. 9
¡ IT management techniques for securing
widespread involvement in the effective
management and use of IT.
¡ Key alignment processes:
§ IT Investment Approval Process
§ Architectural Exception Process
§ Service Level Agreement
§ Chargeback
§ Project Tracking
§ Formal Tracking of Business Value from IT

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¡ To ensure that IT investments generate
significant returns to the enterprise relative to
alternative investment opportunities.
¡ Formalize IT investment proposal process
¡ Uses metrics such as ROI, NPV, and risk.
¡ Standardized project proposals expose the
relative benefits and risks of individual projects,
but they are less effective in establishing how a
proposed project contributes to an enterprise’s
strategic objectives.

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¡ Organizing the investment process around its
core processes.
¡ Four cross-functional process teams.
¡ Process teams submit formal project charters
to the IT Steering Committee
¡ IT Steering Committee assesses the strategic
impact of IT investment opportunities.

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¡ Technology standards are critical to IT –and business- efficiency
¡ But occasional exceptions are not only appropriate; they are
necessary
¡ Exception process is used to meet unique business needs and to
gauge when existing standards are becoming obsolete.
¡ Without a viable process, BUs ignore the standards and
implement exceptions with no approval.
¡ Architecture committees have responsibility for establishing
standards. In many cases, also takes responsibility for granting
exceptions to standards.
¡ Some issues must be resolved at the project team level à put an
IT architect on every project team.
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¡ SLAs list available services, alternative quality
levels and related costs.
¡ Articulation of the services IT offers and the
costs of the services.
¡ Encourage comparisons with external providers
à decision to outsource or not some services.
¡ Encourage BUs to be conscientious in their IT
requests. Quicker à more cost.
¡ Force IT units to think like external providers
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¡ An accounting mechanism for allocating
central IT costs to BUs.
¡ Can be used to align decisions on
infrastructure, business app needs, and IT
investment with business objectives.
¡ To allocate costs so that BU IT costs reflect
use of shared services.
¡ May work with SLA as the charging
mechanism for services delivered.
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¡ Track the progress of individual IT projects
¡ As an element of a standard project
management methodology.
¡ A way to alert management to potential
problems early and enable actions to forestall
delays or cost overruns.
¡ Some enterprises rely on the CMM for certifying
organizational project management.
¡ Other enterprises apply an internally developed
project management methodology.

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¡ How to assess the value of IT?
¡ Understanding the value of IT à better decision
¡ Includes determining whether expectations for a
project’s cost ê or revenue é actually
materialized.
¡ Helps both business and IT executives to
understand the sources of and obstacles to
generating value from IT investments.

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¡ IT Governance, Weill and Ross, Chapter 4

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