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Enterprise IT Governance in the Digital Era

Enterprise IT Governance in the Digital Era

Many modern organizations are concerned about increasing their investments in digital technologies. They are currently looking for a digital transformation journey that presents opportunities for value creation. However, Information Technology (IT) Governance has been determined to be crucial to an organization’s digital initiatives. IT Governance structure, procedures, and relational mechanisms to improve business performance have been discovered by many earlier studies.

A Quick Glimpse of IT Governance

Cited from Gartner, IT Governance can be described as the practices that guarantee the effective and efficient use of IT in assisting a company in achieving its objectives. It is a component of corporate governance that aims to enhance the management of IT as a whole and increase the return on investments made in information and technology. By using IT Governance frameworks, organizations can effectively manage their IT risks and make sure that the activities related to information and technology are in line with their overarching business goals.

More than 732 organizational leaders from around the world were surveyed by ISACA in 2017, and the results showed that 92% of them thought that better IT governance improved economic outcomes while 89% thought it increased business agility. In addition, in order to protect and benefit the organization, IT governance must undergo a substantial transformation as a result of the accelerating use of technology and the digitalization process. Moreover, better and stronger IT governance can result in leaner, more effective operations, better project prioritization, and more measurable ROI.

Therefore, Enterprise IT Governance in today's era is becoming popular in today's era.

What is Enterprise IT Governance?

Enterprise IT Governance is an emerging field of Information Technology (IT). Enterprise IT Governance is a structured decision-making framework for identifying, choosing, prioritizing, and tracking all information technology (IT) investments and activities. Enterprise IT Governance incorporates existing organizational activities, initiatives, and supporting governance boards with business-driven approaches to investment appraisal and selection. The efficiency of IT operations is significantly influenced by Enterprise IT Governance as it aims to support and optimize business objectives. To make sure that IT-enabled investments support business goals, Enterprise IT Governance aids in establishing and monitoring accountability for IT activities.

Why Is Enterprise IT Governance Important?

Beyond simply implementing a superior IT infrastructure, Enterprise IT Governance focuses on defining and establishing organizational processes and structures that will allow business and IT personnel to carry out their duties while maximizing the value generated from their IT-enabled investments.

Therefore, Enterprise IT Governance is significantly important for organizations because of the following.

1. It assists businesses in converting their mission and goals into IT objectives to improve business and IT alignment

The objective of Enterprise IT Governance is to use technology to support and optimize business needs for resource optimization, effective communication, and risk management. Enterprise IT Governance also empowers businesses, assists in establishing and monitoring accountability for IT activities, and makes sure IT-enabled investments support the organizational goals and objectives.

2. It identifies areas of inherent risk and addresses high visibility areas by using business cases and links them to problems and underlying concerns

As risk management is also part of Enterprise IT Governance, it identifies the alignment of critical business processes with supporting technology systems, including opportunities and challenges, and combines them into a company-wide, strategically aligned portfolio view.

3. It assists businesses in locating potential business disruptions to operations and makes sure that process owners control service-related risk

Organizations can establish strong Enterprise IT Governance by coordinating assurance activities including risk management, IT audit, and cyber. Assurance assists businesses in developing strategies for maximizing business objectives, establishing alignment, and lowering risk to corporate objectives.

In conclusion, Enterprise IT Governance has a significant role in assisting organizations reach their goals. Its role is to manage potential risks while ensuring that IT resources are handled responsibly and effectively. Join our training classes to know more about IT Governance!

Join our training classes to know more about IT Governance!


Business Wire. (2017, October). Survey: Strong Tech Governance Drives Improved Business Outcomes. https://www.businesswire.com/news/home/20171002006554/en/Survey-Strong-Tech-Governance-Drives-Improved-Business-Outcomes

Curtis, B. (2020). Utilize IT Governance for Stronger Enterprise Alignment. ISACA. https://www.isaca.org/resources/news-and-trends/isaca-now-blog/2020/utilize-it-governance-for-stronger-enterprise-alignment

Lainhart, J. W. (2016). Holistic IT Governance, Risk Management, Security and Privacy: Needed for Effective Implementation and Continuous Improvement. (n.d.). ISACA.

Stockholm University. (n.d.) IT Governance Influence on Digital Transformation - Stockholm University. https://www.su.se/english/research/research-projects/it-governance-influence-on-digital-transformation

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