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Final Presentation

ACG6437, Summer B 2014, Cohort #33. How does IT Governance help organizations develop information systems that meet their information needs? BY: Rachel Johnson
by

Rachel Johnson

on 13 August 2014

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Transcript of Final Presentation

Week 4
Week 1
COURSE INTRODUCTION
Week 2

W
eek two introduced perspectives that can be adopted in relation to IT governance and the build, acquire, and implementation process.

A
PWC survey on
Digital IQ
showed that the more digital technology is integrated throughout the company, the more value is added at all levels of the company. Once companies realize that Digital IQ is a separate enterprise to be incorporated as a strategy and invested in, rather than just the periodic update of daily software, they will be on their way to a stronger
IT governance
.
IT governance directly concerns technology's pervasiveness in the data collection, storage, and usage processes, it is only logical that the more embracing of Digital IQ a company's management is, the more timely, useful, understandable, and organized the data will be. This data can then be used to engage in more
efficient
,
value added
company processes.
Change management
is the managing of people at all levels of the build, acquire, and implement process. As management recognizes the importance of a strong IT structure, they must be ready to invest the time & resources into preparing their employees for the change.
Week 3

T
he presentations in week three focused on the collection, storage, and usage of
data
deemed "clean" and "quality" by companies based on their
business intelligence
, ability to handle
big data
, and project management of new technology implementation.
Depending on the
strength
of a company's
IT governance
, the level of business intelligence will improve the ability to
analyze
data. It is not enough to simply have data and use it haphazardly; competitive
analytical advantage
is only possible with an IT structure that allows for the organization and analysis of
relevant
data.
BUILDING BLOCKS
C.O.B.I.T.
FINAL WEEK
IT GOVERNANCE
THANK YOU!
A SEMESTER'S JOURNEY


by: Rachel Johnson

4 Building Blocks
Software
is a
broad
technological platform that contains the accounting system along with other applications used within the business, such as payroll, marketing, or human resources applications.
1)
Any accounting cycles or business practices that rely on IT to achieve desired results (i.e. revenue cycle, budget process, etc.)
2)
The aspect of accounting, including the collection, storage, and usage of data, as done with digital technology.
3)
B.A.I. addresses how and when the system/software is used internally.
4)
The structure of IT that is put in place and used to achieve business strategies or goals.
1
2
3
4
E X P O U N D I N G
THE FOUR BUILDING BLOCKS
& C O N C L U S I O N
PERSPECTIVES & TECHNOLOGY
Week 2: Presentation Summary
Digital IQ

-
How well IT governance understands the value of technology and weaves it into the fabric of their organization. This is a perspective, and the correlation is as follows:

I
n the first week of the semester, we were introduced to the four building blocks of the course. Accounting systems, which are part of company software, process data that are provided by
business processes
. These processes are aided by
technology
; its overall infrastructure, several applications, and services provided externally, such as cloud storage. Information flows into the accounting system through the revenue, expenditure, and conversion cycles, making the data input process efficient, accurate, relevant, and timely.


H
owever, before such technology is used, the company must either
build or acquire
the system and
implement
it. The system implemented, of course, is not the same for all companies. Each company must decide their needs and either build a custom made technological system or acquire a system that best meets those needs.


T
he overall
IT governance
of the company determines the structure of the information technology and the extent to which it is used in daily business activities. However, this week's class has not covered exactly how IT governance helps organizations develop the most useful and efficient information system to meet its information needs.
E X P O U N D I N G
O N T H E
P E R S P E C T I V E S
Digital IQ,
Company Performance, and
Technology integration in all company processes.
Change Management

-
the task of seeing the build, acquire, and implementation process and
change
from the perspective of the
people
(i.e. later users).
It involves several management responsibilities:
Determining and devoting the necessary resources to educate and train eventual users.
Communicating clearly the goals, scope and expectations for the project.
Tracking and aiding the people as they progress.
Leading through failures and delays.
Technology
- As described above, ERP, SCM, CRM, & Cloud computing can greatly aid a company as it collects, stores and uses data. However,
only a strongly, Digital IQ-aligned IT governance can

effectively use these strategies
.
Enterprise Resource Planning (ERP)
ERP integrates all departments and functions across a company into a
single
computer system that can serve the particular needs of each separate department.
ERP works to
integrate
all financial, customer, supplier, human resource and business processes information for use at any time by any user.
ERP enhances communication between departments and can be tailored to fit the company's needs based on the products or services provided.
ERP can be the first step to increasing the IT governance in a company, as it centralizes the collection and usage point of business-wide data.
Supply Chain Management (SCM)
SCM
depends
on the supplier and inventory information already stored in ERP but provides more information specific to five business processes:
The
planning
needed to meet the demand of customers
Finding the
source
of raw materials (i.e. suppliers)
Scheduling and managing resources used to
make
the product
Efficient
delivery
of the products and services
Handle the storage or maintenance of product
returns
SCM is used to improve
how
companies find raw components for its product/service and deliver it to customers, based on their needs
Additionally, based on the structure of IT governance, SCM can aid companies meet and increase their information objectives, as this software increases the visibility and knowledge of moving inventory and suppliers, respectively.
Customer Relationship Management (CRM)
CRM is a
strategy
more than a technology, and aids the company learn more about the customer's needs and behaviors in order to build a stronger relationship.
Like SCM, CRM relies on the ERP technology, which is the collective of all company data, to analyze the behavior and needs of customers with the ultimate
goal
of better serving their customers.
CRM increases the knowledge of the company where it concerns their customers, and is especially important if management's goal for IT governance is to aid in better serving customers, the main revenue source of for-profit companies.
Cloud Computing (i.e. Cloud Services)
The Cloud is a new technology
model
in which a third party provides multiple services, hardware, or software platforms over a
network
.
The Cloud, like the world wide web, is an
abstraction
, meaning it has the ability to hide the complexities of a system from the end user while providing all the power and capabilities the user requires (i.e. storage or data program interfaces)
The Cloud strengthens the structure of IT governance by offering a model that can be implemented only as needed, storing data in a relatively safe ans separate location while providing all users with collective data simultaneously.
Week 3: Presentation Summary
E X P O U N D I N G
O N T H E N E W I D E A S
Business
Intelligence
Business Intelligence:
the ability and extent to which a company can align its technology to analyze and use data with its business strategies and goals. It is a perspective on using data. Correlation:




Big Data:
data marked specifically by its sheer
volume
,
velocity
at which it is collected, and
variety
.
If the company is unable to organize the data and determine what is necessary and what is useless or incomplete, it will become quickly overwhelmed by masses of data.

BOTH
strengthen the role of IT governance, in that their structure determines the extent to which data is collected and analyzed for later use in meeting the organization's needs.
Competitive
Advantage
Business Intelligence (BI)
"Big" Data
Project Management
Big Data is marked by
three
characteristics:
Project management
is a vital part of the build, acquire, and implement process. As a company's management begins to implement new technologies that align to the business processes as part of strengthening the IT Governance, leaders must determine and track multiple aspects (as outlined below), including:
Time:
how long the project will last, and how to continue the process when the project stumbles.
Scope:
how the project will be implemented.
Costs:
resources (monetary or otherwise) needed.
BUSINESS INTELLIGENCE & BIG DATA
BI effects on IT:
The data collected is useless without a technological structure to store, organize, & analyze the data for use within the company. Much of this data that is collected is not useful or the source is not reliable, making it "dirty data". Good BI architecture is designed to sift through and distinguish good data from bad, delivering only useful, clean data for the company's internal use. Management that aligns its IT governance with business processes with a strong business intelligence is more competitive.

Data Flow to Users
Aspects of Project Mgmt.
Variety
Velocity
Volume
This type of data can be very useful for companies, but only if they have the IT Governance and technology in place to handle it. If companies can not, they can be quickly overwhelmed by masses of data. This potential problem can be fixed with a strong business intelligence architecture as described before.
BUILD, ACQUIRE, & IMPLEMENT
IT GOVERNANCE, BAI, & APO
Week 5

T
he three presentations this week focused on three companies, SYSCO, Harley-Davidson, and Clothes 'R' Us, as they decided whether or not to build or acquire new IT systems and the steps they took for implementation. In the case of SYSCO, the company sought to deploy a company-wide business intelligence software in order to centralize very dissimilar business processes, applications, and data across multiple individual companies within SYSCO. Despite a sturdy ERP system and Data warehouse, there was a need for a software that could organize, monitor, and analyze the data. A new BI software would give users simple access to the data they most needed through ad hoc queries, connectors to databases like Microsoft Access and enterprise applications like SAP, and, predefined report creation tools. SYSCO followed the following steps after approval to externally acquire a software named Business Objects from a vendor:
Primary
Lesson: This week's presentations focused on the process of building or acquiring new technology solutions, the implementation of these projects, and how to deal with challenges along the way.
Introduced
To:
C
ontrol
Ob
jectives for
I
nformation and Related
T
echnology. It is a a framework created by ISACA for IT management & governance. While it is clearly a guideline for management and IT governance, the principles & their implications are still unclear.
3 TOP 10 TECH. INITIATIVES
Week 6
SCOPE
DESIGN
BUILD
DEPLOY
EVOLVE
Determine
requirements
Needs v. Wants
Determine the
specifics for
analytics
Configure
Create
Test System
Implement
Support
Monitor
Tweak
Fix

A
lthough the cost-benefit analysis to build or acquire is important, implementation and the subsequent monitoring is the bulk of the BAI process, the latter of which should not end. Approximately 40% of the implementation fee applied to the license while 60% applied to continuing consulting and training from the vendor. It is especially important that the company
governance
body continues to monitor and communicate with management to understand the benefits and shortcomings of the they system after the BAI process in order to continue tweaking existing applications that they may perform optimally or replace old applications that are no longer useful to better strengthen the company internally and remain competitive.
Business Needs
Evaluate
Direct
Monitor
Plan Build Run Monitor
IT Governance
(BOD)
Executive
Management
COBIT Video - Governance v. Management
It is the job of IT Governance to direct and monitor the management as they plan, build, run, and monitor the projects of the company. IT governance provides an overarching vision and leadership tor the managers that run the day to day business. The arrow leading from the pro-cesses managed by executives to the
evaluation
responsibility of the governing board represents
management feedback
. The board can not direct or monitor without regular communication with management, and strong IT governance can only exist if the governing body is aware of the technology that exists, the problems it has, and the vision to continue evolving the systems with improved technology. They provide the vision to align technology with business practices, and management makes the vision a reality.

T
he presentations this week focused on the APO roles of IT governance in the implementation process as it relates to COBIT. APO or
align
,
plan
, &
organize
, are the beginning steps to any project, all of which must be done by the governing body of the company. For example in the case of Volkswagen, the 10 separate business units that comprised the company had 40 different projects running that required $210 million. However, the project budget provided for only $60 million. Therefore, the company's
governance
had to decide which projects were most important and aligned with the business goals. In order to do this, the IT steering committee (ITSC) created a hierarchical and prioritized list of all 56 enterprise goals, among other things, to act as a blueprint in order to determine which were most important and which projects aligned to the goals the most. In connection with the ITSC, the Digital Business Council (DBC) was tasked with the difficult tasks of:
C
ategorizing each project
A
ssess the impacts of the each project on the business
D
iscern the alignment of each project with the company's goals, and
M
ake trade-off decisions based on goal alignment, project cost, and priority.


T
his process took three months, but the implementation of the projects could not begin until this necessary planning and organizing step was completed by the governing bodies and their committees. As part of the COBIT
principle 5, the governance first had to determine which projects to proceed with in the planning stage of APO before they could direct executive management to implement the projects. The BAI process starts after the
APO
stage of COBIT.
P R E S E N T A T I O N 1 - IT INVESTMENTS & SPENDING
P R E S E N T A T I O N 2 - SECURING THE IT ENVIRONMENT
P R E S E N T A T I O N 3 - ENSURING PRIVACY
E
valuate,
D
irect,
M
onitor
This is the responsibility of the IT Governance of the enterprise. They must provide leadership and a vision to the management in order to guide the use of the information of the systems. They must
evaluate
the needs of the company and cost of fulfilling those needs,
direct
management as they begin the processes, and
monitor
their project investments during and after the implementation through constant communication with management.
A
lign,
P
lan,
O
rganize
Management must prioritize the projects by business need and cost. Governance must only choose projects that align with the business, or else they can spend alot of money and time on unnecessary projects.







A tight plan must be created to keep spending on budget, and management must tell governance if the project slows, as
time = money
.
B
uild,
A
cquire,
I
mplement
D
eliver,
S
ervice,
S
upport
M
onitor,
E
valuate,
A
ssess
B U D G E T
BAI01 - Project Management
Involves the budgeting, programming, and monitoring of the project.
Following
budget
and time schedule is very important for controlling spending.






IT spending by expense type
Hardware
Software
Subscriptions
Services (i.e. consultants and advisers)
DSS01 - Manage Operations

Effective operations management helps maintain data integrity and reduces business
delays
and IT operating costs.

Management must seek governance support if delays become too expensive.

Although the project may meet business information needs, the costs of continued support or service delays can outweigh the benefits.
Management must
evaluate
the expected and actual results.
Asses
:
If the IT system does not meet standards, Why?
If the IT system cost too much to implement or continue using, What can be done to remedy.
What does the IT governance need to keep in mind or learn from the process to do better the next time.

If all went to plan, they must still learn new ways to improve process for
future
.
SECURITY
Enterprises must ensure the privacy of their data/information. IT governance must evaluate which combination of technology will best provide for the confidentiality, integrity, and availability of their sensitive data and information. There are several tools that can be put in place to do this, including physical locks to manual file storage and passwords for individual user profiles.
Authentication:
making sure the person is who they claim to be (i.e. IT director versus staff user)
Authorization:
making sure the user has limited or defined access to only relevant information.
Culture:
most importantly, IT governance sets the tone-at-the-top, meaning a that the enterprise will only practice safe data practices if they are prompted
and monitored by governance.
Leadership
Must lead organization in creating a controlled environment and secure information use.
Organizational Structure
Must define the roles and responsibilities of the company for proper authorization in IT systems, as well as create IT strategy/steering committees to implement secure, useful IT technology.
Processes
Should understand and use COBIT and "best practices" framework to align technology with business processes.
IT GOVERNANCE ROLES
The governance of Twitter
works to be
transparent
with
users where it concerns their
privacy rights and what they
are doing to secure personal
information. They must be
diligent to protect information,
as the web is privy to many
security threats.

Ensuring privacy is an increasing issue for social media sites, as their sole purpose is for users to share personal information. IT governance has an extensive role and must be diligent to deter breaches while finding a balance between
security
and
services
provided.

Preventing &
Responding to Computer Fraud
The
risks
are information theft and misappropriation
of assets. Information technology, while improving the
collection, storage, and usage of company data, can
also facilitate the perpetration of fraud.

General fraud prevention includes VPNs, passwords, firewalls, and authorization/authentication procedures.

However, the data is only as secure as the overall
environment of the company, and this culture is set by
the governance at the top. It is important that they
establish IT access restriction and defined roles
for each user profiles. Unless the IT team is
aware of the risks and how to mitigate
mitigate them, information security
could be compromised.
The
risks
increase when external parties are hired
to handle information because the enterprise must
rely on their security, confidentiality, and process integrity of the vendor.

The most important step for IT governance is to first
determine the enterprise's needs. Without this analysis, they may buy something that does not meet their business requirements.

In order to mitigate these risks and understand the
deliverables, governance should create a Service
Level Agreement that defines the service or
product, responsibilities and obligations
of each party, terms and conditions.
Managing IT
Vendor & Service Providers
IT Governance is the head of the entire
technological structure. Without out it, the enterprise
would be navigating a complicated, data driven world.
Strong guidance allows for the enterprise to create or
acquire technology to aid in the collection, storage, and
use of raw data for more efficient business processes. The
COBIT principles give IT Governance a framework to
follow when deciding the purpose and overarching
business goals, such as applying a holistic approach
when directing and monitoring management, or
keeping the stakeholder's needs in mind when
choosing the technological architecture to process
and store company information, and the
stronger their digital IQ, the more value is
added at all business levels.
Conclusion
Full transcript