The implementation of a solution follows a familiar path for IT procurement.
1. Draw up in-depth business requirements;
2. Get sign-off, budget and commitment at the highest level;
3. Search for a suitable solution;
4. Narrow down to a short list of vendors or integrators depending on whether the answer is an integrated solution with best-of-breed (BOB) point solutions, frameworks or single solutions such as common-off-theshelf software (COTS) and
5. Selection of solution, including on-site product demonstrations, submission of tender documents, detailed project timelines, budgets, and further risk analysis.
Factors driving selection might include: the flexibility of the system to meet the company's current and future business needs, an ability to be implemented in a phased way, the level of customisation possible, the ease of integration with existing solutions and end-user ease-of-use and acceptance.
Driven by the strategy this may be a short-term or long-term solution. The natural project for IT governance is a large-scale, complex implementation. It seems that the larger the solution the greater the need for governance. But in reality, even smaller-scale endeavours need the rigour of an IT governance discipline. So the larger framework is applicable to almost any scenario. One view of IT Governance, which takes an optimistic slant on the overhead it represents, is that it has, at heart, the intention of maximising the value of IT to the organisation. By monitoring and managing against a risk regime, and ensuring that budgets are built around real business interests, IT is evidently beneficial. The Butler Group, in a report on IT governance, concludes that IT plays a significant role in creating value for an organisation. Without this governance, the contribution to business of IT is greatly reduced. Effective IT Governance defines a clear framework for all IT-related decisions. This last point is particularly important. The need for reference frameworks is largely a function of the complexity and scale of the way IT now underpins the financial sector.
When evolving an approach to integrating business and IT interests it makes sense to examine best practice. An IT governance framework, such as Control Objectives for Information and related Technology (COBIT) is a well-known example of such a framework. COBIT is, by intention, a comprehensive solution. It seeks to provide a set of guidelines on how best to achieve the synthesis of business and IT interests. It is systematic in approach and thinks through the scope of processes and activities that need to be addressed to achieve a working solution. It implicitly recognises a number of the issues discussed earlier; it ensures that responsibilities are recognised and allocated and accountability is built into a reporting process. Its main focus is on information systems, processes and systems of control that ensure these processes and systems are effective. It doesn't dictate how they are to be made effective, but it does indicate how this might be achieved. The final step is for the firm, or business to think through its own wellknown processes and apply the framework, thoroughly. Such application can lead to a very comprehensive portrayal of how the business operates and how IT makes that possible. How this is applied will depend on the strategy the organisation chooses to achieve its business objectives. There are three categories of strategy.
Operational excellence - This strategy has an emphasis on cost reduction using highly efficient business processes throughout the organisation and into the supply chain. IT is seen as the tool for realising process management and automation.
Customer relations - Focusing on the benefits of good customer relationships through excellence in customer service IT maximises the benefits of customisation. It extends customer reach and generates business intelligence for developing further products.
Product leadership - This sees IT as the prime instrument for product and service innovation around a strong brand image. IT delivers knowledge management and supports collaboration on product design and marketing.
Whatever strategy is chosen, a framework like COBIT is essential. The way decisions are taken will depend on the strategic approach and the risk analysis, or resulting risk profile, for the firm. The IT Governance Institute sees this balancing of interests as the business of IT governance, ensuring proper control and governance over information and the systems that create, store, manipulate and retrieve it.
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