Chapter 1: Introduction
1.1 Enterprise Governance of IT
➔ Firms are increasingly using digital technologies for strategic purposes,
accompanied by fundamentally reshaped (digital) business strategies
◆ Organisational decision-makers are increasingly facing important IT-
related decisions at all managerial levels
➔ Achievement of IT business value relies heavily on good IT governance
◆ “Effective IT governance is the single most important predictor of the
value an organisation generates from IT”
◆ However absence of IT governance can cause many problems, such
as information security breaches
◆ Organisations have clear incentives to strive for effective IT
governance, as this enables the creation and protection of IT
business value
Enterprise Governance of IT (EGIT): the issues related to ensuring appropriate
control over IT to enable the creation and protection of IT business value
➔ It enables the creation and protection of IT business value through the
mediating mechanism of business/IT alignment
➔ There is a clear relationship between these three core concepts
➔ The conceptual model:
Definition: Enterprise Governance of IT (EGIT) is an integral part of corporate
governance for which, as such, the board is accountable. It involves the definition
and implementation of processes, structures, and relational mechanisms that enable
both business and IT stakeholders to execute their responsibilities in support of
business/IT alignment, and the creation and protection of IT business value.
Enterprise Governance of IT (EGIT) is the process of establishing a framework for
the use of technology in an organisation. It involves defining policies, procedures,
and standards for the management and use of IT assets to align with the
organisation's goals and objectives. EGIT aims to ensure that IT resources are used
effectively and efficiently to support and enhance the organisation's operations. It
involves the participation of multiple stakeholders and may involve the use of
governance frameworks or models.
, Due to the focus on “IT” in the naming of the concept, the IT governance discussion
mainly remained within the IT area. For instance when you contact the CEO for an
interview on IT governance you get immediately referred to the CIO.
➔ It is clear that IT business value cannot be realised by IT, but will always be
created at the business side
◆ For example: if IT delivers a CRM system on time and within a budget,
there wouldn't be any business value creation if business side is not
integrating this new information system into its business operations
◆ ⇒ integration & standardisation
➔ Therefore the name Enterprise Governance of IT (EGIT), which implies the
involvement of the business
◆ This change in the naming implies a crucial shift in mindset of business
stakeholders
1.2 Business/IT alignment
The outcome of EGIT is the alignment of information technology with the business.
Business/IT alignment: the fit and integration among business strategy, IT strategy,
business structures, and IT structures.
Two major questions:
● How is IT aligned with the business?
● How is the business aligned with IT?
Strategic Alignment Model (SAM)
1.1 Enterprise Governance of IT
➔ Firms are increasingly using digital technologies for strategic purposes,
accompanied by fundamentally reshaped (digital) business strategies
◆ Organisational decision-makers are increasingly facing important IT-
related decisions at all managerial levels
➔ Achievement of IT business value relies heavily on good IT governance
◆ “Effective IT governance is the single most important predictor of the
value an organisation generates from IT”
◆ However absence of IT governance can cause many problems, such
as information security breaches
◆ Organisations have clear incentives to strive for effective IT
governance, as this enables the creation and protection of IT
business value
Enterprise Governance of IT (EGIT): the issues related to ensuring appropriate
control over IT to enable the creation and protection of IT business value
➔ It enables the creation and protection of IT business value through the
mediating mechanism of business/IT alignment
➔ There is a clear relationship between these three core concepts
➔ The conceptual model:
Definition: Enterprise Governance of IT (EGIT) is an integral part of corporate
governance for which, as such, the board is accountable. It involves the definition
and implementation of processes, structures, and relational mechanisms that enable
both business and IT stakeholders to execute their responsibilities in support of
business/IT alignment, and the creation and protection of IT business value.
Enterprise Governance of IT (EGIT) is the process of establishing a framework for
the use of technology in an organisation. It involves defining policies, procedures,
and standards for the management and use of IT assets to align with the
organisation's goals and objectives. EGIT aims to ensure that IT resources are used
effectively and efficiently to support and enhance the organisation's operations. It
involves the participation of multiple stakeholders and may involve the use of
governance frameworks or models.
, Due to the focus on “IT” in the naming of the concept, the IT governance discussion
mainly remained within the IT area. For instance when you contact the CEO for an
interview on IT governance you get immediately referred to the CIO.
➔ It is clear that IT business value cannot be realised by IT, but will always be
created at the business side
◆ For example: if IT delivers a CRM system on time and within a budget,
there wouldn't be any business value creation if business side is not
integrating this new information system into its business operations
◆ ⇒ integration & standardisation
➔ Therefore the name Enterprise Governance of IT (EGIT), which implies the
involvement of the business
◆ This change in the naming implies a crucial shift in mindset of business
stakeholders
1.2 Business/IT alignment
The outcome of EGIT is the alignment of information technology with the business.
Business/IT alignment: the fit and integration among business strategy, IT strategy,
business structures, and IT structures.
Two major questions:
● How is IT aligned with the business?
● How is the business aligned with IT?
Strategic Alignment Model (SAM)
