The CIO Enabling IT and Service Governance

The CIO Enabling IT and Service Governance

DOI: 10.4018/978-1-4666-2512-9.ch012

Abstract

In this chapter, the authors explore and propose the fundamental principles for designing a strategy-aligned service governance model, which is closely related to IT governance. Both IT governance and service governance can only be operationalized successfully by strong a C-level executive leadership. The role of a CIO has a good positional-fit with the enterprise-wide focus of the governance purpose. This chapter addresses the CIO’s enterprise-wide leadership role, including ownership and utilization of the governance process to create business value and competitive advantage.
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What Is It Governance?

IT governance can be defined as specifying decision rights and accountability framework to encourage desirable behavior in the use of IT (Weill & Ross, 2004). This is the definition we will use here.

Other definitions are for example:

  • 1.

    IT governance is the structures and processes that ensure that IT supports the organization's mission. The purpose is to align IT with the enterprise, maximize the benefits of IT, use IT resources responsibly, and manage IT risks,

  • 2.

    A structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise's goals by adding value while balancing risk versus return over IT and its processes,

  • 3.

    IT governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization's IT sustains and extends the organization's strategies and objectives, and

  • 4.

    IT governance is the system by which an organization's IT portfolio is directed and controlled. IT Governance describes

    • a.

      The distribution of decision-making rights and responsibilities among different stakeholders in the organization, and

    • b.

      The rules and procedures for making and monitoring decisions on strategic IT concerns (Peterson, 2004).

An extensive definition was presented by the IT Governance Institute (2004) as follows. It is a board or senior management responsibility in relation to IT to ensure that:

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