IT GOVERNANCESantika Hayam Wuruk – 19 Nopember 2015

2

Does IT Matter?“When a resource become essential to competition but inconsequential to strategy, the risks it creates become more important than the advantages it provides.”“Worrying about what might go wrong may not be as glamorous a job as speculating about the future, but it is more essential job right now.”

“The key to success, is no longer to seek advantage aggressively but to manage costs and risk meticulously.”

Nicholas G. Carr – IT Doesn’t Matter

3

Characteristics of Top-Performing Enterprises MIT/CISR research has shown returns up to

40% greater than competitors by firms that Clarify business strategies and the role of IT in

achieving them Measure and manage the amount spent on, and

the value received from, IT Assign accountability for the organizational

changes required to benefit from new IT capabilities

Learn from each implementation, becoming more adept at sharing and reusing IT assets.

4

Characteristics of Top-Performing Enterprises Successful enterprises understand the risks and

exploit the benefits of IT, and find ways to deal with Aligning IT strategy with the business strategy Cascading IT strategy and goals down into the enterprise Providing organizational structures that facilitate the

implementation of strategy and goals Creating constructive relationships and effective

communications between the business and IT, and with external partners

Insisting that an IT control framework be adopted and implemented

Measuring IT’s performance

5

IT Governance Maturity Model

Industri di IndonesiaK/L

6

Corporate Governance & IT Governance

Corporate Strategy,

Activity, Culture and Behavior

Finance Governanc

e

HRGovernanc

e

IT Governanc

e

Market and Customers, Regulation,

Stakeholders, Resources,

Competitors, Technology

Risk & Opportuni

ty

Create

Manage Risks

Realize Opportunity

Corporate Governance

Realize Opportuni

tyManage

Risks

Drive and Set

Implement usingImplement using

Driver

Sales & Marketing

Governance

7

IT Governance It is a board or senior management responsibility in

relation to IT to ensure that: IT is aligned with the business strategy, or in other

words, IT delivers the functionality and services in line with the organisation’s needs, so the organisation can do what it wants to do.

IT and new technologies enable the organisation to do new things that were never possible before.

IT-related services and functionality are delivered at the maximum economical value or in the most efficient manner. In other words, resources are used responsibly.

All risks related to IT are known and managed and IT resources are secured.

8

Value delivery

Focuses on ensuring the linkage of business and IT plans; on defining, maintaining and validating the IT value proposition; and on aligning IT operations with enterprise operationsIs about executing the value proposition throughout the delivery cycle, ensuring that IT delivers the promised benefits against the strategy, concentrating on optimising costs and proving the intrinsic value of ITIs about the optimal investment in, and the proper management of, critical IT resources: applications, information, infrastructure and people. Key issues relate to the optimisation of knowledge and infrastructure.

Requires risk awareness by senior corporate officers, a clear understanding of the enterprise’s appetite for risk, understanding of compliance requirements, transparency about the significant risks to the enterprise, and embedding of risk management responsibilities in the organisation

Tracks and monitors strategy implementation, project completion, resource usage, process performance and service delivery, using, for example, balanced scorecards that translate strategy into action to achieve goals measurable beyond conventional accounting

Performance measurement

Risk management

Resource management

Strategic alignment

IT Governance Focus Areas