WHY CORPORATIONS ARE ASKING FOR an INFORMATION SYSTEMS GOVERNANCE ? ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 1 Almiro de Oliveira 4. IS Governance.

WHY CORPORATIONS WHY CORPORATIONS ARE ASKING FOR ARE ASKING FOR an INFORMATION SYSTEMS GOVERNANCE ?an INFORMATION SYSTEMS GOVERNANCE ?

ISGecISGecBrussels 2011Brussels 2011Lisbon/Geneve 2010 Lisbon/Geneve 2010 Madrid 2009Madrid 2009

11

Almiro de OliveiraAlmiro de Oliveira

4. IS Governance vs IT Governance

1. Modern Corporations are IBO

2. IS Politics

5. Information Governance

(5 arguments)

3. IS Governance

Top Management must assume the IS Governance since it is a very critical and strategic issue for Management and for Organizations

22



1. Companies are Information Based Organizations (IBO)

– because Organizations are becoming IBOs

Top Management must explicit IS Politics, because the objectives and goals of IS investments

are critical for the future of the Organizations

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33

ISGecISGecBrussels 2011Brussels 2011Lisbon/Geneve 2010Lisbon/Geneve 2010

Madrid 2009Madrid 2009


2. IS Politics

Politics concerns with the use of powerInformation is the support for the use of power

IS investments

44



2. IS Politics (cont.)

- Domain

Centralization, Decentralization, Empowerment Human Resources IS partnerships operations Integration level Innovation, Research & Development Differentiation & Competitiveness Internal marketing of available solutions Distribution & Information access Paperless office Security Economics: costs, overheads, charge back

Top Management must assume and must be committed with Information Systems Governance.

Why?

55



3. Information Systems Governance

Because:

1) Of it’s phenomenological complexity,

2) Of the variety of resources involved in the IS solutions,

3) Of the great impact it can have on Organizations Competitiveness and Sustainability.

66

Range of activities related to decision-making, regarding the definition of objectives, politics and strategies

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3. Information Systems Governance (cont.)


IS Objectives, IS Politics and IS Strategies must be compatible/integrated with the Corporate Governance’s objectives, politics and strategies.

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1. Selection and clarification of the objectives to be achieved with Information Systems investments

3. Information Systems Governance (cont.)

Main areas & Contents:

2. Definition of IS Organization models and its integration with the Institution’s Macro-Structure

3. Characterization of the model and of the practices of IS Governance, namely the:

- IS Urbanism- IS Architecture- IS Planning- IT Products Acquisition - IT Products Utilization

- IT Organization Models (resources deployment)

- IT Operations & Processes Model

- IT Performances Monitoring

88

IS is a System

IS Governance is not the same as IT Governance

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4. Information Systems Governance vs IT Governance

IT Governance is a part of IS Governance

IT is a tool (an element of the system)

99

Set of activities which intent to reduce operational risks created by IT environment, through internal control and auditability solutions, which intend to ensure the integrity, the completeness and the Information traceability



Integrity: Totality, entirety

4. IT Governance (cont.)

Completeness: Complete, whole, entire

Traceability: Detectable, localizable, follow the trail, path

Sarbanes-Oxley (30/07/2002) from USA Congress, contains 66 articles and

only 4 have connections to IT departments:

302 – Financial Reporting Responsibility 404 – Evaluation of internal Management controls 409 – Real time Management of Information flows 1102 – documents falsification/fraud

1010



4. IT Governance (cont.)

1111

Top Management must be concerned with Informationas a Corporate resource, as an Asset and as aCompetitive advantage critical factor



5. Information Governance

“How Information gives you competitive advantage”, (Porter & Millar, 1985)

Information Governance should be a responsibility of theInstitution’s President---------------------------------------------------------------

CEO must be the cIo

cIo is not the same as cITo ...

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5. INFORMATION GOVERNANCE (CONT.)Main Areas – job description

Information Supply & Information StocksInformation Supply & Information Stocks

Tools & Resources Tools & Resources

Information Production Process Activities & Information Information Production Process Activities & Information Production Models Production Models

Information Quality Information Quality

Access/reach & End Use of InformationAccess/reach & End Use of Information

Economic ApproachEconomic Approach

Information Governance ModelsInformation Governance Models

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CATEGORY1 Managing IT services 2 Working with non-IT colleagues3 Working with customers 4 Managing enterprise processes

TOTAL



CIO … or… cITo ??

IT Savvy : “What Top Executives Must Know to Go from Pain to Gain”, pg 143Weill, P. & Ross, J.W.HBP, 2009

CIO - time assigned

44%36%10%10%

100%

1414


CATEGORY1 Managing IT services

2 Working with non-IT colleagues

3 Working with customers

4 Managing enterprise processes

TOTAL


Almiro de Oliveira

Proposal

2010

CIO - time assigned44%36%10%10%100%

cIo … for the XXI Century …

CIO - time assigned

44% → 20%

36% → 20%

10% → 30%10% → 30%

100% 100%

WHY CORPORATIONS ARE ASKING FOR an INFORMATION SYSTEMS GOVERNANCE ? ISGec Brussels 2011 Lisbon/Geneve 2010 Madrid 2009 1 Almiro de Oliveira 4. IS Governance.

Documents

information governance

governance slide

oliveira isgec brussels

politics politics concerns

use of power information

ibos slide

use of power slide

organizations competitiveness