1. IT Governance, Managing IT

2. ADMN645 - IT Governance, Managing IT2 The Investing Community Public Corporations Stockholders (shareholders) Stock exchanges U.S. Securities and Exchange Commission (SEC) Auditors

3. ADMN645 - IT Governance, Managing IT3 How it Works Corporation issues shares, purchased by investors Investors receive returns Share appreciation (realized when sold) Dividends Other ways to invest Derivatives Bonds Mutual funds

4. ADMN645 - IT Governance, Managing IT4 How it Works (continued) Investors buy and sell shares, based on: Evaluation of the corporation Perspectives on how others evaluate the corporation Other criteria?

5. ADMN645 - IT Governance, Managing IT5 Evaluating the Corporation Annual Report to Shareholders Form 10-K report – official, more detailed report to SEC Detailed financial reports Business summary Properties Legal proceedings Role of the auditor

6. ADMN645 - IT Governance, Managing IT6 System Built on Trust Corporation reports results... Accurately Completely Financial and non-financial Auditor’s opinion unbiased SEC and stock exchanges are watchdogs

7. ADMN645 - IT Governance, Managing IT7 Breakdowns Tyco International WorldCom (now MCI) Enron Effects Enriched (now imprisoned) executives Shafted shareholders Diminished (or extinct) companies

8. ADMN645 - IT Governance, Managing IT8 Sarbanes-Oxley Act –Provisions Related to IT Section 302 - Personal certification of financial reports and effective controls by CEO/CFO Section 404 – Annual evaluation and certification of financial controls Effects: Higher visibility of IT to executive leadership IT governance on a higher level

9. ADMN645 - IT Governance, Managing IT9 What is IT Governance? How the organization makes decisions about the use of information technology Enterprise architecture Project priorities Reporting metrics Cost allocation Sourcing Who has the authority? Who has input?

10. ADMN645 - IT Governance, Managing IT10 Signs of Dysfunction (Luftman) Diffuse, uncoordinated decisions Business units not accountable to IT No unifying enterprise architecture Spending too much (or don’t know) Few or no measures of IT effectiveness

11. ADMN645 - IT Governance, Managing IT11 Governance Decisions CIO reporting relationships – to CEO, COO, or CFO Level of centralization of IT organization The players and relative influence IT staff and managers Business managers Executive leadership

12. ADMN645 - IT Governance, Managing IT12 Governance Drivers Organizational form – centralized, decentralized, multi-national Centrality of IT to organizational mission IT-enabled products IT-enhanced operations Organizational environment – competitive, regulatory

13. ADMN645 - IT Governance, Managing IT13 Managing IT – An Oxymoron? No...but it’s close Gap (chasm?) between business and IT Different languages between business and IT Business – sales, growth, ROI, market share, cost control, etc. IT – XML, Ajax, JavaScript,.Net, etc.

14. ADMN645 - IT Governance, Managing IT14 Bridging the Gap Help senior management to understand IT issues Speak their language CIO briefing an exercise

15. ADMN645 - IT Governance, Managing IT15 Working With Senior Management Not willing to understand your problems Asking for the moon without paying for it “Work smarter, not harder” “Doing more with less” “Be creative” Vendors willing to bypass CIO, sell to senior business managers Other problems?

16. ADMN645 - IT Governance, Managing IT16 Lessons Learned in Managing IT (from Jack Crosby) Have a vision and a plan for IT Form an IT steering committee Never tell other unit heads that they don’t understand IT Break down large projects Have a systems development methodology Measured investments in new technology

17. ADMN645 - IT Governance, Managing IT17 Lessons Learned (continued) Be cautious with vendors and their concept of “partnering” Organizational politics matter Measurements matter – what doesn’t get measured, doesn’t get done

18. ADMN645 - IT Governance, Managing IT18 Catatech Industries Case - Questions With respect to the question of electronic commerce, what are the motivators, drivers, issues for: Marisa Rivera? Carlos Fernandez? How much and in what ways are their motivations in conflict, and congruence?