Rewards Of Successful It Governance

Essay by sevdaeceUniversity, Master's April 2009

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1.INTRODUCTIONAs information technology becomes more ubiquitous in both life and business activities, it becomes increasingly difficult to separate out the role of information technology in business activities from a description of the business activities themselves.

Today, most of the companies can no longer ignore the importance of Information Technology in their organization to get competitive benefit. The firms can be said that they are heavily relying on IT for processing their work because IT has a power to change the entire organization such as size, net-profit, competitively, productivity, human activity efficiency and customer satisfaction. Companies always have to search for new ideas, processes, and methods that will make their company more effective and efficient.

Investing right technology, which makes a company unique and effective, is not that easy to be decided due to measuring the process of IT is invisible in some manner. Also, it is hard to figure out its effects and future benefit to an organization.

Because the use and knowledge of IT cannot be seen at once but decision of choosing a new technology must be faster than knowing well about the technology itself to be an winner among competitors who also seek a new and unique technology. However, even if investing a new technology would have pretty much risk one the other hand it also would be able to result in a sustainable advantage. To gain competitive and sustainable advantage, it would not possible to avoid the risk of investing a new technology.

2.IT GOVERNANCE AND ITS IMPORTANCEIT governance is the system that controls the access to and management of IT by an organization. In essence, it should be fully integrated into the overall process of organizational governance. IT is just one aspect of an organization's affairs that requires governance. The same disciplines...