Information Technology (IT) Governance Term Paper

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IT Governance lays special emphasis on the system of information technology, along with the performance and risk management of the IT infrastructure in an organizational context. The primitive focus of IT Governance is the assurance of the fact that investment in the Information technology infrastructure is contributing to generate business value and at the same time lessen the potential risks pertaining to the Information Technology. This objective is attained by adequate maintenance and implementation of an organizational configuration with properly allocated role of information technology governance. IT Governance is scrutinized in relation to how the IT model generates value that goes hands on with the overall corporate governance strategies in an organization.

IT Governance

Importance of IT Governance

IT Governance refers to a framework to enhance the efficiency of the managerial processes in an organization. It is generally regarded that the efficiency of the Information Technology in an organization is yielded by the appropriate IT tools utilized; the determination of the IT tools to be used in an organization is the basic task of the IT Governance.

Precisely the importance of IT Governance is described as a structural interaction of organizational resources complemented by occasional control and proper direction so as to ensure the attainment of organizational goals, primarily by adding value and at the same time balancing the associated risks by effective utilization of IT tools under prudent IT Governance. IT Governance further specifies the decision making authorities and the framework of accountability that induces advantageous behaviors and actions so as to encourage desired IT outcomes (Luftman null03).

Over a period of few decades IT Governance has taken a central position in organizational settings. As a matter of fact effective execution of organizational objectives cannot be accomplished without IT intervention, timely delivery of goods and services, designing new products, maintaining employee efficiency, analyzing the trends of business cycle are all dependent on the IT-based tools as regulated by the IT Governance of an organization.

Importance of IT Governance for Effective Management of Micro Environment

The micro environment of organization is the determinant of an organization success.

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Micro environment of an organization encompasses the factor that directly intervenes with the organizations chain of command; this indicates that the internal as well as the external customers of the organization makes up the micro environment. The internal customer refers to the employees and the external customers indicate the customers and consumers of the organization's product and services. Apart from these two basic entities the supplier, the competitors and the general public also constitutes to the micro environment of the organization and are the determinants of business success (Currie and Galliers iii).

The Intervention of effective IT Governance to manage the micro environment refers to the effective methods and IT related tools to process the feedback and performance of internal and external customers. Additionally the IT tools for managing the relationship with suppliers and tracking the performance of the competitors can bestow organizational performance and subsequently business success and goodwill in the micro environment of the business (Rathmell, Daman, O'brien, and Anhal null01).

Importance of IT Governance for Effective Management of Macro Environment

The micro environment of the organization has greater impact on the organizational success. In contrast to the micro environment the macro environment is not in control of the organization. The government regulations, government policies as well as the economic fluctuations are not in the direct control of the organization. But yet the degree of effect produced by the macro environmental factors is much more in intensity and effect (Williams, and Williams's iii).

The IT Governance can help an organization to overcome the negative consequence of the macro environment fluctuations by tracking the records and by maintaining the data trends of the industry so as to enable the decision makers for effectively evaluating and forecasting the future trends and taxation issues.

How IT Governance Facilitates Corporate Governance?

Corporate governance is the overall business criterion that….....

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