1. Discussion of IT Governance Drivers of Process Maturity, by Roger Debreceny and Glen Gray 2011 UWCISA Symposium Toronto, Canada Uday Murthy University of South Florida

2. 2 Agenda Research questions Theoretical foundation Field study methodology IT governance drivers Process maturity measurement Analysis & results Contributions Unanswered questions….future directions

3. 3 Research Questions Are there attributes of IT governance that govern the level of process maturity? If so, which attributes are more or less significant? Are there domains or processes that are more influential? Are there other control variables such as size or industry that explain the relationship between IT governance and process maturity? Is process maturity evenly distributed across domain?

4. 4 Theoretical Foundation Resource Based View, Dynamic Capability Theory, Contingency Theory …provide guidance on the relationship between governance, strategy and resource acquisition… Unclear how these theories inform the relationship between IT governance and process maturity No propositions offered (as promised in intro)

5. 5 Field Study Nice cross-section of location and industry in sample of 51 organizations Developed countries more heavily represented than developing countries Europe, Canada, US, Singapore: 76% Mexico, Philipines: 24% Mainly large firms (avg. of 172 IT personnel, 194 servers)

6. 6 IT Governance Drivers Very comprehensive approach to data collection Decision rights and organization Governance framework (39!) Business/IT alignment (24 questions) Environmental volatility Size and complexity

7. 7 Process Maturity -- What Generic maturity model (Fig. 13 in COBIT 4.1) vs. Maturity attribute table (Fig. 15 in COBIT 4.1)

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10. 10 Process Maturity -- How As is rating for each of 6 maturity attributes for each of 41 processes for 51 organizations Max of 12,546 observations ( 6 x 41 x 51) Each maturity attribute rated on 1 to 5 scale, with 5 being highest maturity level

11. 11 Process Maturity – Data Issues Ratings averaged (a) across maturity attributes and (b) across respondents Some processes had more than one manager provide rating Some managers provided ratings for multiple processes For a small number of organizations, we collected only overall process maturity level data; not attribute-level data.

12. 12 Analysis & Results Process maturity levels by domain …average level of process maturity is very low… More prosaic processes have relatively high levels of maturity: 1. SecurityVirus 2. Manage Physical Environment 3. IT investmentbudgeting 4. Security – network & firewall 5. Manage data What can get me fired?

13. 13 Regressions give appearance of rigor, but… Missing data Table 8 regression (overall) is based on 2095 observations (16.7% of 12,546) Table 9 regression (by attribute) is based on 1896 observations (15.1% of 12,546) None of the three theories are relied on for logic underlying the regressions Lack of independence of observations Possible multi-collinearity issues Concerns Regarding Analysis…1

14. 14 Concerns Regarding Analysis…2 Factor analysis of Business/IT alignment 41 data points (no. of organizations, N) and 16 questions (variables, p) and N / p ratio is less than 3:1 Bare minimum is 3:1, with 5:1 or 6:1 recommended (Cattell 1978; Gorsuch 1983) Business/IT alignment becomes two factors: Strategy and Vision Only Strategy is significant in regressions

15. 15 Suggestion: Data Reporting

16. 16 Suggestion: Analysis Measures of IT governance Decision rights and organization, governance frameworks, business/IT alignment, outsourcing, environmental volatility, size and complexity Use these six measures to categorize organizations as being high, medium, or low in IT governance Then look for relationships between IT governance category (high, medium, low) and IT process maturity – overall and by domain

17. 17 First look at process maturity of COBIT processes and IT governance drivers thereof International focus, allowing comparison across firms in more and less developed countries Association between process maturity and business/IT alignment is intuitively appealing and validates a priori expectation Contributions

18. 18 Does business/IT alignment lead to process maturity or does process maturity lead to business/IT alignment? Why is process maturity lower for firms in less developed countries? What are the consequences of higher/lower process maturity? (On firm performance, internal control effectiveness, etc.) Unanswered Questions / Future Directions