Information Management July 2010

IT Governance Wins You the Battle

Arthur D. Little study shows 40 per cent of CEOs and CIOs want to overhaul IT governance

IT Governance Wins You the Battle

IT Governance Wins You the Battle

39 pere cent of CEOs and 44 per cent of CIOs are not satisfied with their IT governance. This is one of the key findings of the Arthur D. Little 009 IT governance study, which shows that many large corporations want to make fundamental changes to the way they organise their business IT. The Arthur D. Little IT governance approach provides a solid basis for optimising IT governance and, in particular, for improving IT demand management.

The Arthur D. Little IT Governance Study examined IT governance at 63 large corporations. The study found that, as a result of limited satisfaction with existing IT governance, 47% of corpora­tions intend to rework their IT governance, as figure 1 shows.

IT governance: a key management lever for aligning IT and business

Why do so many companies struggle with IT governance? The fundamental complexity of the interaction between IT and business is at the heart of the problem. Business and IT rely on one another, but speak different languages. The typical mismatch of business requirements and the solutions delivered by IT illustrates this. Furthermore, sustainable alignment cannot be achieved through a single good decision, implementation project or sourcing deal, but requires a clear strategy that underpins ongoing decision-making. As one business manager puts it: “In the end, though a joint effort, we rescued our ERP project. But what comes next? There must be a better way than permanent fire-fighting mode.”

 

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