IT Governance & Quality Management 

Lekture 1Introduction

1IT-University of Copenhagen10/04/23

After the course the student should be able to: • Describe IT governance control structures and mechanisms in a company • Describe quality management structures and mechanisms in a company • Explain the value of IT governance and quality management • Describe industry standards for IT process models (e.g. CoBIT and ITIL) and development and test of IT systems (e.g. Agile, V-model) • Analyze the contents of quality related standards and compliance requirements. Reflect on the significance of quality standards and compliance requirements. • Recommend an IT governance setup for a given situation • Recommend an quality management approach in a given situation 

2IT-University of Copenhagen10/04/23

IT-Governance in a context

Six key assets

• Human

• Financial

• Physical

• Intellectual property

• IT

• RelationshipsRoss & Weill

3IT-University of Copenhagen10/04/23

IT-Governance in a context• 5 Key assets

• People, Portfolios and Processes:

• The 3P Model of IT Governance 

• http://www.isaca.org/Journal/Past-Issues/2008/Volume-2/Pages/People-Portfolios-and-Processes-The-3P-Model-of-IT-Governance1.aspx

4IT-University of Copenhagen10/04/23

One definition of IT architecture

” The fundamental organization of a system

represented by its components,their relationships to each other and to the environment,

and the principles that govern the systemdesign and development. "

ANSI/IEEE Std 1471-2000 superseded by ISO/IEC/IEEE 42010:2011,Systems and software engineering — Architecture description.

” The fundamental organization of a system

represented by its components,their relationships to each other and to the environment,

and the principles that govern the systemdesign and development. "

ANSI/IEEE Std 1471-2000 superseded by ISO/IEC/IEEE 42010:2011,Systems and software engineering — Architecture description.

5IT-University of Copenhagen10/04/23

BusinessIT

6

Strategy

6IT-University of Copenhagen10/04/23

Conant-Ashby Theorem • ”every good regulator of a system has to have a model

of that system” • Our ability to control a system depends on

understanding that system• This means that we need to understand all facets of

The systems - not only the technical

In conclusion

10/04/23 · 7

“Now! …. That should clear up a few things around here!”10/04/23 8IT-University of Copenhagen

10/04/23 IT-University of Copenhagen 9

•What is IT-Governance•For who by who•The Goals of IT-Governance•The importens of IT-Governance

What is IT-Governance• Information technology governance is a subset discipline of corporate governance

focused on information technology (IT) systems and their performance and risk management. The rising interest in IT governance is partly due to compliance initiatives, for instance Sarbanes-Oxley in the USA and Basel II in Europe, but more so because of the need for greater accountability for decision-making around the use of IT in the best interest of all stakeholders.

10IT-University of Copenhagen10/04/23

Definitions• Specifying the decision rights and accountability framework to encourage desirable

behavior in the use of IT.“ Weill and Ross

• "… the leadership and organizational structures and processes that ensure that the organization's IT sustains and extends the organization's strategies and objectives.” The IT Governance Institute

• "an integral part of corporate governance and addresses the definition and implementation of processes, structures and relational mechanisms in the organization that enable both business and IT people to execute their responsibilities in support of business/IT alignment and the creation of business value from IT enabled investments". Van Grembergen and De Haes (2009)

• "The system by which the current and future use of ICT is directed and controlled. It involves evaluating and directing the plans for the use of ICT to support the organization and monitoring this use to achieve plans. It includes the strategy and policies for using ICT within an organization.” the Australian Standard for Corporate Governance of Information and Communication Technology

11IT-University of Copenhagen10/04/23

Key Players Involved with IT Governance

IT governance occurs at different layers. Project Managers and Team leaders report to and receive direction from their managers; managers’ report up to the CIO’s; and the CIO’s report to executives, who report to the board of directors. Reporting includes descriptions of any activities that show signs of deviating from targeted objectives. Each level, when reporting these deviations, includes recommendations for action that must be endorsed by the governing bodies above.

Stakeholders play a part in IT governance. At the heart of the governance responsibilities of setting strategy, managing risks, allocating resources, delivering value and measuring performance, are the stakeholder values, which drive the enterprise and IT strategy. Sustaining the current business and growing into new business models are certainly stakeholder expectations and are achieved with adequate governance of the IT infrastructure.

12IT-University of Copenhagen10/04/23

The goals of IT-Governance

• The primary goals for information technology governance are to (1) assure that the investments in IT generate business value, and (2) mitigate the risks that are associated with IT. This can be done by implementing an organizational structure with well-defined roles for the responsibility of information, business processes, applications, ICT infrastructure, etc.

• Accountability is the key concern of IT governance.

13IT-University of Copenhagen10/04/23

Desirable behaviors

Embody the:• Beliefs• CultureDefined and enacted though:• Strategy• Corporate value statements• Mission statements• Business principles• Rituals• structures

04/10/23 14IT University of Copenhagen

Mechanisms for governance of the key assets

• Structures

• Processes

• Committee

• Procedures

• audits

• And more

04/10/23 15IT University of Copenhagen

IT Governance

Effective IT governance must address three questions:

• What decisions must be made to ensure effective management of IT?

• Who should make these decisions?

• How will these decisions be made and monitored?

But before that - Why

04/10/23 IT University of Copenhagen 16

Why is IT Governance important?

• New information technologies bombard enterprises with new business opportunities

• IT is Pervasive• IT is Expensive• Looking ahead, the influence of IT on enterprise

performance will continue to grow• Leading Enterprises Govern IT differently - Find the right

balance• Senior Management has limited bandwidth

04/10/23 IT University of Copenhagen 17

Why is IT-Governance important?

"IT-Governance is the most important factor in generating business value from IT”

“IT-Governance can actually deliver on the longtime management paradox of encouraging and leveraging the ingenuity of all the enterprises people while ensuring compliance with the overall vision and principles”

04/10/23 IT University of Copenhagen 18

Framework for the key IT Governance decisions

04/10/23 IT University of Copenhagen 19

04/10/23 20IT University of Copenhagen

Four IT Architecture Stages

Define Your Operating Model