by Nico / Yuwan Zhang
IT can facilitate the world to be flattened ,improve the organizational performance ,create business value , improve customer experience ,achieve customer expectation and catalyze the diffusion of information ,data and knowledge inside organization .
IT governance (ITG) is the responsibility of an organization’s top management and board of directors; these groups, though, have different governance responsibilities and practices, which are often at odds (Fama & Jensen, 1983).
In my working experiences , I have participated several different companies which focus on the development of SaaS software , Web-based system and App , as a product manager my responsibilities varies because nearly every company has their own way to manage the product and team and their maturity of IT and digital varies also.
Nonetheless ,fewer studies have been devoted to the board’s involvement with ITG and how it might influence organizational capabilities and performance outcomes (Jewer & McKay, 2012; Turel & Bart, 2014).
ITG-IT Governance is accountable for using IT in the organization ,such as set the formal strategies and policies , make right decision in response to changes and uncertainties in the external environment ,in charge the information system functions and so on .
IT has became one major part of business processes
The basic idea of the RBV-Resourced based view is that organizations hold organizational resources and capabilities, which allow them to achieve competitive advantage and potentially improve organizational performance (Barney, 2001);The RBV literature also includes the idea of dynamic capabilities as a means to explain how organizations deal with the rapid changes in organizational environments and customer needs (Winter, 2003) .
Apparently , IT has became one important part of business processes ,IT can help business to achieve its objective and it spans every business function and department .
ITG can be an important predictor of the business value an organization can derive from IT (Weill & Ross, 2004), ITG is the responsibility of an organization’s top management and board of directors. Top management’s responsibilities include strategizing, budgeting, executing, controlling, and reporting on IT projects and operations; top management is therefore often involved in the generation of IT strategies, decides on and manages IT projects and daily operations (Weill & Ross, 2004). However ,fewer studies have been devoted to the board’s involvement with ITG, even though this involvement has been shown to be very fruitful for organizations (Jewer & McKay, 2012; Turel & Bart, 2014)
Board-level ITG refers to “the board’s actions to ensure that the organization’s IT sustains and extends the organization’s strategies and objectives” (Turel & Bart, 2014, p. 224).These actions include monitoring, planning, advising, and providing access to external resources and knowledge related to IT initiatives (Bart & Turel, 2009, 2010).
Board-level ITG can change, update, and remix low-level organizational capabilities in response to changes and uncertainties in the business environment. Board members are often involved with many organizations (as consultants, board members, or executives) and hence are typically highly familiar with the environment. Consequently, they can sense changes and absorb uncertainties in the environment, and often have better reach to and “sensors” in the information system management environment than executives do. As such, board members can help organizations seize opportunities and mitigate risks by discussing and making major decisions on IT strategic issues, IT internal control issues, IT risk issues, and corporate IT policies (Bart & Turel, 2010).
Especially , the coivd-19 pandemic has accelerate the change and uncertainties in the business environment and external environment such as politics , economy,social,technology and so on . How the business seize oppotunites and mitigate risks in the intense change environment is highly crucial , in which case ITG plays an essential role in this phase .
There are two major ways in which IT can facilitate and catalyze the processes of business , include .
(a)IT increase effeciency of existing business processes ,such as IT enables faster decision making and increases span of control and increase effeciency through replacing manual tasks to automation
(b)IT enable new business processes ,such as supporting new business models by adpoting new IT technology which can change the flow of information and replace sequential steps with parallel steps so that can eleminate deplays in decision making and
There are four major ways in which IT can enable organizational change, include .
(a)Automation , adopting automation to substitute manual and traditional tasks can result in correctness and efficiency .This is low rish and return is low also .
(b)Rationalization of procedures , Streamlines standard operating procedures , eliminate obrious bottlenecks and make quality improvement .
(c)Business process redesign , through IT to analyze , simplify and redesign business processes such as reorganize workflow , eliminate repetition and so on ,
(d)Paradigm shifts , Rethink nature of business , deign new business model and change the culture , the way how organizaiton work and collaborate .This can bring highest rish and highest return.
Reference
Ofir Turel, Peng Liu & Chris Bart (2017) Board-Level Information Technology Governance Effects on Organizational Performance: The Roles of Strategic Alignment and Authoritarian Governance Style, Information Systems Management, 34:2, 117-136, DOI: 10.1080/10580530.2017.1288523
Dr. Aleš Popovič (2021) Building Information Systems ,Information Systems Management ,available from https://elearning.novaims.unl.pt/pluginfile.php/107494/mod_resource/content/1/ISM_2122-12-Building_Information_Systems.pdf
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