3 min read • Information management
Arthur D. Little: Putting IT governance at the top of the agenda
<p>Now is the time for corporations to make fundamental changes to the way they organise business IT, with 40 per cent of CEOs and CIOs pointing towards an overhaul in IT governance. This is the key finding of a study of 63 large corporations by global management consultancy Arthur D. Little. The consultancy has developed an approach to provide companies with the means for optimising IT governance.</p>
Over recent years, corporate governance has become mandatory. As a subset of corporate governance, IT governance has made its way up the corporate agenda. With many IT organizations in survival mode due to the economic crisis, Arthur D. Little believes this is the time to align IT with business to overcome a period of hibernation and in preparation for economic growth.
Successfully aligning IT and business can only be achieved by a clear governance that underpins all decision-making processes. As Arthur D. Little’s study shows, corporations must first opt for different strategic approaches depending on their specific economic position:
- Centralized IT model: for companies less complex in terms of product diversity, such as a no-frills air carrier, standardization and cost focus are the guiding principles
- Decentralized IT model: heterogeneous or holding companies with multiple IT divisions, such as a finance holding, support a differentiation or focus strategy approach
- Demand/supply split: large and complex organisations, such as a large car manufacturer, should create a decentralized IT demand management organization to reflect the nature of the separate business divisions
Another key for success is the right distribution of power and responsibilities between the business and IT as well as between central and subsidiary units.
“The “one size fits all” approach to the organization of IT is a myth and therefore IT governance should become a top management priority,” comments Dr Fabian Dömer, Head of the Information Management Practice at Arthur D. Little. “We are all aware that we have a long road ahead before economic stability. Companies therefore need to maintain their cost focus but must also secure future growth opportunities. IT governance is key to mastering that challenge and sustainably aligning IT with business. Special attention should be drawn to demand management.”
To access the full report, please visit:
www.adl.com/IT_Governance
3 min read • Information management
Arthur D. Little: Putting IT governance at the top of the agenda
<p>Now is the time for corporations to make fundamental changes to the way they organise business IT, with 40 per cent of CEOs and CIOs pointing towards an overhaul in IT governance. This is the key finding of a study of 63 large corporations by global management consultancy Arthur D. Little. The consultancy has developed an approach to provide companies with the means for optimising IT governance.</p>
Over recent years, corporate governance has become mandatory. As a subset of corporate governance, IT governance has made its way up the corporate agenda. With many IT organizations in survival mode due to the economic crisis, Arthur D. Little believes this is the time to align IT with business to overcome a period of hibernation and in preparation for economic growth.
Successfully aligning IT and business can only be achieved by a clear governance that underpins all decision-making processes. As Arthur D. Little’s study shows, corporations must first opt for different strategic approaches depending on their specific economic position:
- Centralized IT model: for companies less complex in terms of product diversity, such as a no-frills air carrier, standardization and cost focus are the guiding principles
- Decentralized IT model: heterogeneous or holding companies with multiple IT divisions, such as a finance holding, support a differentiation or focus strategy approach
- Demand/supply split: large and complex organisations, such as a large car manufacturer, should create a decentralized IT demand management organization to reflect the nature of the separate business divisions
Another key for success is the right distribution of power and responsibilities between the business and IT as well as between central and subsidiary units.
“The “one size fits all” approach to the organization of IT is a myth and therefore IT governance should become a top management priority,” comments Dr Fabian Dömer, Head of the Information Management Practice at Arthur D. Little. “We are all aware that we have a long road ahead before economic stability. Companies therefore need to maintain their cost focus but must also secure future growth opportunities. IT governance is key to mastering that challenge and sustainably aligning IT with business. Special attention should be drawn to demand management.”
To access the full report, please visit:
www.adl.com/IT_Governance