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Introduction – Why IT Governance is a Top Management Issue
Governance is very fundamental in any organization and involves determining the distribution of decisions made and making responsibilities. Organization managers and leaders are not always supposed to perform all the duties but they can discharge some duties to employees as a way of improving their performances (Lainhart, 2000). Corporate governance is defined as a process used by an organization or institution in governing with the aims of achieving the set goals and objectives and solving conflicts of interest between various stakeholders. Why IT Governance is a Top Management Issue.
This implies that, governance is principally a function of the board that helps in the management of the affairs of an organization, centred on oversight of management functioning, and ensures legal, regulatory, and ethical compliance. However, the philosophy of corporate governance has been different in different regions (Mueller & Phillipson, 2007). For instance, in the United States the model is mostly centred on the interests of shareholders as well as compulsory disclosures. The European and Japanese model of corporate governance is centred on the interests of employees, suppliers, managers, and the general community while in India the philosophy is centred on the inalienable rights of the shareholders. Why IT Governance is a Top Management Issue.
Through effective information technology governance, businesses are able to address major business challenges like electronic commerce and business resource planning. Businesses are enabled to ensure the reliability, security, and integrity of their strategic information which is very imperative in their operations (Ingraham & Lynn, 2004). Information technology governance helps in the protection of the business’s investment in information technologies that include networks and systems. Businesses cannot feel motivated to invest in the information technology if their technologies are not secured and protected.
However, through effective governance organizations ensure that there is appropriate management of their information’s assets, which directly impact the success and survival of the business (Warkentin & Vaughn, 2006). As indicated earlier, it is very hard for any organization to excel in its business operation without the assurance of the security of its information technology. This is because all the strategic plans of the business in the market are accessed by the competitors. Each and every business has the responsibility of maintaining its business information safely in order to succeed and survive (Olowu & Sako, 2002).
The reason as to why many businesses especially in the international market have not been able to perform well or have failed is because they have no assurance of the security of their information technologies. However, if these strengths are not adequate for a business, there are opportunities and threats presented by information technology governance in the business environment (Brand & Boonen, 2007). The advantages of this type of governance ensure sustainable survival and success of any organization in its operations. As noted by Mueller and Phillipson (2007), effective governance of information technology enables a company to take advantages of its present opportunities and avoid the impending threats that may hinder development.
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