1. IT ALIGNMENT: IT Governance
LIS 4776 Advanced Health Informatics
Week 3-2
Instructor: Dr. Sanghee Oh
College of Communication & Information, Florida State University

2. Building Strong Governance for Health IT

3. Presentation Information
IT Governance
Definition: Specifying the ______________ and _________________ to encourage ___________________ in using IT
IT Governance is not about making specific IT decisions – management does that
IT Governance is about determining _________ systematically makes and contributes to those decisions
IT Governance is about encouraging and leveraging the ingenuity of the enterprise’s people in IT usage and __________________ with the enterprise’s overall vision and values
CONFIDENTIAL

4. Presentation Information
IT Governance Needs
Need for Strategic Planning (V/M/G)
Sharing data among departments, among facilities, and among enterprises
Systems have to be:
____________ (DO SOMETHING)
____________ (GROW)
____________ (ADAPT to new things)
What do those mean?
CONFIDENTIAL

5. Presentation Information
IT Governance
All organizations have IT governance but few are effective
Effective IT governance means
An ______________________________________________that encourage behaviors consistent with the organization’s mission, strategy, values, norms, and culture
Effective IT governance does not mean…IT governance by default (tactical governance)
Good governance design allows enterprises to deliver superior results on their IT investments
CONFIDENTIAL

6. Presentation Information
IT Governance
Specifically, IT Governance is:
the manner in which ____________________________ for the IT portfolio are organized and integrated
describes the differentiation and integration of _________________________
specifies the ____________________________ that provide direction to strategic IT decision-making
plots a path for achieving business objectives
describes coordination mechanisms to be applied to decisions
CONFIDENTIAL

7. Presentation Information
IT Governance
ANOTHER WAY: IT Governance is:
How things are _______________
________________ are made (Centralized vs. decentralized)
Includes:
Strategic alignment
Risk management
Resource management
Performance management
Value delivery
Records management/compliance
Control Objectives for Information and Related Technology (COBIT) is a framework created by ISACA for information technology (IT) management and IT governance. It is a supporting toolset that allows[citation needed] managers to bridge the gap between control requirements, technical issues and business risks. From:
CONFIDENTIAL

8. Presentation Information
IT Governance
Delivering Value:
_______________
Costs decreases
Revenue increased
More productivity [which means more revenue relative to cost?]
Adherence to standards
Better outcomes
Stakeholder [what’s that?] satisfaction
Risk reduction
CONFIDENTIAL

9. Presentation Information
IT Governance
Effective IT governance is the single most important predictor of the value an organization generates from IT
Must address three questions:
_____________ must be made to ensure effective management and use of IT?
________ should make these decisions?
________ will these decisions be made and monitored?
Borrowed from Abell**
CONFIDENTIAL

10. IT Governance Arrangements Matrix
Nokia NEBIC & IT Governance Program 2005
IT Governance Arrangements Matrix
Evidence to date shows that there are typical IT governance input and decision rights patterns. The federal style dominates, with IT making infrastructure and architecture decisions
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
Monarchy IT
Feudal
Federal
Duopoly
Anarchy
Don’t Know
Domain
Style
Source: MIT Sloan CISR
Dr. Brad Wheeler, Indiana University & JOKO Executive Education Oy

11. Presentation Information
IT Governance
IT Principles
Clarifying the business role of IT
IT Architecture
Defining integration and standardization requirements
IT Infrastructure
Determining shared and enabling services
Business Application Needs
Specifying the business need for IT applications (either purchased or internally developed)
IT Investment and Prioritization
Choosing which initiatives to fund and how much to spend
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

12. Presentation Information
Domain
Style
IT Styles
Business
Monarchy
Business Monarchy - Top management makes decisions - the CXOs
IT Monarchy - IT specialists make decisions
Feudal - Each business unit makes independent choices
Federal - Combination of the corporate center and the business units with or without IT people involved
IT Duopoly - IT group and one other group (i.e. top management or business unit leaders)
Anarchy - Isolated individual or small group decision making IT
Monarchy
Feudal
Federal
Duopoly
Anarchy
Don’t Know
CONFIDENTIAL

13. Presentation Information
IT Principles
A related set of high-level statements about _____________________________
They can be used as a tool for educating executives about technology strategy and investment decisions
The hallmark of an effective set is a clear trail of evidence from the business to the IT management principles
Detailed IT principles should clarify at least three expectations for IT in the enterprise:
What is the enterprise’s desired operating model?
How will IT support the desired operation model?
How will IT be funded?
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

14. IT Principle Example: U.S. General Service Administration
Key IT Principles:
Platform Reuse First
Open Source First
Cloud First
Open, Shared Data
Single/Seamless Sign-on
Digital Services Improvements
Records Management
Cyber Security
Effective Vendor/Partner Engagement

15. Presentation Information
IT Architecture
The organizing logic for ______________________________ , captured in a set of policies, relationships, and technical choices to achieve desired business and technical standardization and integration
________________________ are the defining characteristics of enterprise architecture
Enterprise architecture defines data and infrastructure as a stable platform supporting faster-changing (flexible/agile) applications
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

16. Enterprise Architecture

17. Presentation Information
IT Architecture
What are the _______________________ of the enterprise? How are they related?
________________ these core processes? How must this data be integrated?
What ________________ should be standardized enterprise-wide to support IT efficiencies and facilitate process standardization and integration?
________________ must be standardized enterprise-wide to support data integration?
________________ will guide the enterprise’s approach to IT initiatives?
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

18. IT Architecture Example: Burton Group (merged to Gartner Inc.)
Source:

19. Presentation Information
IT Infrastructure
The ________________(both technical and human) available throughout the business as shared and reliable services and used by multiple applications
In the typical enterprise, infrastructure accounts for about 55% of the total IT investment
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

20. Presentation Information
IT Infrastructure
________________ are most critical to achieving the enterprise’s strategic objectives?
For each capability cluster what infrastructure services should be implemented enterprise-wide and what are the service-level requirements of those services?
How should infrastructure services be __________?
What is the plan for ________________?
What infrastructure services should ________________?
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

21. Business Application Needs
Presentation Information
Business Application Needs
Defining and delivering value through business applications remains a significant organizational challenge.
________________ ________________ often has two conflicting objectives – creativity and discipline.
Finite resources an investment test or strategic purpose.
Identifying business experiments that have the potential to become strategically important may be more of an art than a science.
Successful enterprises consistently demonstrate a willingness to sacrifice functionality to sustain architectural integrity.
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

22. Business Application Needs
Presentation Information
Business Application Needs
What are ________________ for new business applications?
How are experiments designed to assess whether they are successful?
How can business needs be addressed within architectural standards? When does a business need justify an exception to standard?
________________ the outcomes of each project and institute organizational changes to ensure the value?
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

23. Presentation Information
IT Investments
You must make a decent return or you go bust.
It just happens faster with IT!
How much do you spend? On What?
Three basic dilemmas exist:
________________ to spend?
________________ to spend it on?
________________ to reconcile the needs of different constituencies?
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

24. Presentation Information
IT Investments
What process changes or enhancements are strategically ________________ to the enterprise?
What is the distribution in the current IT portfolio? Is this portfolio consistent with the enterprise’s strategic objectives?
What is the relative importance of enterprise-wide versus business unit investments?
Do actual investment practices reflect their relative importance?
Domain
Style
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
CONFIDENTIAL

26. It Governance At Carlson Companies
Carlson Companies allocates IT decision making to encourage business unit autonomy while ensuring strategic use of corporate IT funds. Five decision-making mechanisms implement this objective. The IT investment committee, a subset of the senior executive committee, makes IT investment decisions.
Source:

27. Nokia NEBIC & IT Governance Program 2005
IT Principles
IT Architecture
IT Infra- structure
Strategies
Business
Application Needs
IT Investment
Monarchy IT
Feudal
Federal
Duopoly
Anarchy
Don’t Know
Over 70% relied on IT monarchies
to choose IT architecture
Domain
Style
Evidence to date shows that there are typical IT governance input and decision rights patterns. The federal style dominates, with IT making infrastructure and architecture decisions
Over one-third of the 256 enterprises in the MIT/CISR study used a duopoly in the three less technical IT decision domains
IT principles
Business application needs
IT investment
Also frequently used to provide input into architecture and infrastructure decisions
Source: MIT Sloan CISR
Dr. Brad Wheeler, Indiana University & JOKO Executive Education Oy