Report: Governance and Change Management in Digital Business and VALIT

This report delves into the critical aspects of governance and change within digital business environments, examining the application of the Val IT framework and Kotter's change management model. The report begins by providing a background on governance practices and their influence on business performance, particularly in the context of Information and Communication Technology (ICT) investments within the Victorian Government. It explores the Val IT framework, its principles, and its alignment with ITGI’s COBIT, emphasizing the importance of value governance, portfolio management, and IT investment strategies. A critical analysis of Val IT highlights challenges such as a lack of structured approaches to IT investment decisions and communication gaps. The report then applies Kotter's model of change management to implement Val IT, outlining the steps from creating a sense of urgency to integrating changes into the organizational culture. The application of Kotter's model is discussed in detail, illustrating how it facilitates value creation, manages accountability, and addresses issues like poor technical capabilities and unclear business functions. The report emphasizes the importance of stakeholder engagement, monitoring key metrics, and adapting to changes to achieve business goals. The conclusion summarizes the key findings and the significance of effective governance and change management in maximizing the benefits of IT investments and enhancing overall business performance.

Running head: GOVERNANCE AND CHANGE IN DIGITAL BUSINESS
Governance and change in digital business
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Table of Contents
Introduction................................................................................................................................3
Case background........................................................................................................................3
VALIT overview........................................................................................................................3
Critical analysis of VALIT.........................................................................................................4
Kotter’s model of change management......................................................................................5
Application of Kotter’s model for implementing VALIT..........................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................6

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Introduction
The report is prepared to discuss about the governance within the organisations and
how it has influenced the management of changes for the betterment of business performance
and functioning. The application of Kotter’s change model will also for implementing the
VALIT and at the same time, understand the advantages that have been drawn from the
investments on Information and communication technology or ICT within the Victorian
Government. With the IT investments, there will be better value creation, which can further
assist the business organisations to align the Val IT framework into the ITGI’s COBIT. This
shall help in the delivery of good quality information and communication technology based
services and conduct good practices required to measure, monitor as well as manage
optimisation of value created in business by making investments in Information technology
(Zhu and Li 2014). It can also be understood that the Val IT framework consists of various
procedures and approaches for the management of change based on value governance,
management of portfolio and managing good investments in IT too. The main issue or
shortfall in governance practice is the lack of a structured approach required to make IT
investment decisions and communication gaps between the IT functions and business , which
has affected the technical capabilities and created difficulties in delivering the best quality
technology based services to the clients. The topic will highlight the change intervention
possible through management of value governance, furthermore implement the Kotter’s
change model to ensure smooth business functioning (Lombardi et al. 2016).
Case background
From the case study, it can be understood that the main focus has been on the change
interventions integrated in the governance practice required to manage value creation and
implement Val IT framework properly too. The Information and communication technology

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or ICT has been considered as a trendsetter for managing good amounts of information and
deliver programs and services to meeting the demands and expectations of clients. There are
a number of investments that have been done for ICT management and to ensure improving
the effectiveness of transparency, openness and better management of resources, both human
resources and financial resources effectively (Rubino and Vitolla 2014). The case also
illustrates about the IT Governance Institute’s Val IT framework, which is required to allow
the enterprise manage optimisation of value based on the investments done for IT. The
Governance framework includes various principles and processes that influence the
development of management practices, which has also helped in keeping the Val IT
framework aligned with the ITGI’s COBIT (De Haes et al. 2013). From the case, it could be
understood that there had been several challenges associated with the Val IT and IT
governance mechanisms such as the lack of a proper structured approach, which needs
investment decisions for IT to ensure value creation. Another major challenge has been the
poor understanding ability while beginning with the IT functions and governance framework.
Due to this also, there is need for Information and communication technology investments in
the Victorian Government that can not only manage value creation, but will also create a
better way or approach to understand how to begin (Poorebrahimi, Razavi and Razavi 2016).
This would also engage the managers, leaders and employees together to make decisions and
work on a shared vision and goal for the purpose of designing, implementation and
sustenance of value management practices to meet the expectations and demands in the
marketplace.
VALIT overview
Considering the case study, The Val IT initiative or framework has been used to
address the increased demands and expectations for the IT investments and to manage value

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creation at a reasonable cost, furthermore reduce the scopes of risks and create convenience
for the managers, leaders and executive management of the organisations to understand the
need for value creation based on the IT investments. There are various principles of Val IT
including the IT enabled investments required to be managed as a portfolio of investments
and even including the various activities in IT enabled investments to ensure value creation
all throughout (Ali, Green and Robb 2015). The IT enabled investments should be done with
the management of an economic life cycle, while the procedures associated with the delivery
of value based services must be able to identify the various areas where investments should
be done. The other principles included in the Val IT framework have been based on the value
creation and delivery practices that are mostly associated with the monitoring of key metrics
to respond to changes quickly, enable engagement of stakeholders and understanding the
benefits of IT enabled investments while keeping all these practices under close monitoring
to ensure making any changes or improvements (Ningsih et al. 2013). All these principles are
managed to ensure value creation all throughout and for the management of investments on
IT, furthermore ensure good governance and delivery of technology based services efficiently
too.
Therefore, these principles should allow for identifying the scopes and opportunities
in the economic life cycle to create value and at the same time, identify the various categories
or areas where investments should be done for facilitating the IT. This would also allow for
responding to changes and make necessary improvements for the achievement of business
goals and objectives with much ease and effectiveness. Not only these are the benefits, but
also the involvement of all stakeholders is essential for managing accountability and manage
practices for creation of value and delivery of technology based solutions much more
comprehensively (Worley and Mohrman 2014). It could also allow for spreading awareness

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about the value management practices, furthermore reduce the gaps between the attitudes,
behaviour and practices.
Critical analysis of VALIT
Based on the case study, there are several issues and challenges associated with the
utilisation of Val IT such as the lack of ability to deliver the best quality technical
capabilities, not being able to understanding the expenses that might be incurred while
implementing an effective IT system. Due to the lack of skills, competencies and knowledge,
often the technical capabilities are not delivered properly, which further needs management
of proper IT governance and management processes required to ensure implementation of
value management practices effectively. Lack of knowledge in the assessment of budget and
expenses to be incurred could be a major challenge and often the costs associated with the
services, assets and management of resources are left out, thus, created more complexities
like duplication of data and information and conflicts related to the management of demands
and expectations for resources, both human resources and financial resources (Hornstein
2015). To manage effective decision making regarding the IT functions to be implemented at
the organisations, managerial skills are necessary and thus the manager or leader often lack of
the understanding of their roles and responsibilities properly. With the unclear business
functions, it also becomes difficult for the managers to understand which investments for IT
should be done and the areas, which could also affect the decision making process efficiency.
There are communication gaps often experienced between the business and IT functions,
which also questions the ability of manager or leader, thereby, resulted in poor
communication, failed synergy, lack of partnership working and inappropriate culture too
(Wilkin et al. 2016). Thus, the value and benefits of IT by using Val IT framework have been
questioned, as it could be seen from the case study, furthermore lead to a major constraint of

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understating the value derived from the investments for IT enabled governance procedures. It
might also affect the organisational capability to respond to changes and deteriorate the
business performance too. The IT investment failures also resulted from poor management of
CRM or Customer Relationship management system and Enterprise resource planning or
ERP, which also has been considered as a major challenge experienced while using Val IT
framework (Ramlaoui and Semma 2014).
Kotter’s model of change management
The Kotter’s model of change management has been a major approach adopted by the
organisations for the purpose of creating a sense of urgency, develop coalition among groups
and vision to empower the actions undertaken. This kind of model has been used to manage
transformational changes, furthermore manage necessary changes integrated in the culture of
the organisation to improve the business performance, furthermore create scopes and
opportunities or the betterment of revenue generation capability and for attaining competitive
advantage in business (Pollack and Pollack 2015).
The first step of the change model has enabled creating a sense of urgency, which also
allowed for engaging the organisational memebrs together and discuss about the present
situation as well as the situation of the organisation to be achieved in the future. For example,
if a company faces issues like loss and lack of ability to gain competitive edge over its
competitors, the first step to be undertaken by the company would be to develop a state of
urgency and make the staffs provide their ideas, views and opinions to be considered for
making changes and how it could bring longevity of business and higher revenue generation
capability. The guiding coalition should make the staffs understand the need for change,
furthermore the manager should be careful enough to assess the development needs of
employees and provide necessary training sessions to the staffs (Kazmi et al. 2013). The

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vision for change should be communicated among the organisational memebrs so that they
could understand what the change is all about, which would be possible by applying the
vision to various operational aspects such as by training sessions and through performance
assessment and review programs. The barriers should be checked regularly and removed by
taking immediate actions related to recruitment and selection of new staffs, handing over the
responsibility to a change model, who should be well knowledgeable and skilled to maintain
a good organisational structure (Parker et al. 2013). This could also facilitate job descriptions
to staffs, delegate tasks according to their areas of interest, and provide rewards and
incentives to people, who might be resistant to change. Therefore, it would keep the entire
workforce motivated an empowered to achieve the short term wins and also build on the
change by engaging key change agents to bring change coalition. The changes should be
integrated in the corporate culture, furthermore, result in putting continuous efforts for
transforming the business functioning on a positive note as well (Gorran Farkas 2013).
Application of Kotter’s model for implementing VALIT
The Kotter’s model for change has allowed for managing the drivers of change
responsibly to make a major shift in revenue generation and at the same time, adopt the value
management practices, required to develop the economy and manage accountability and
reliability on the future as well. For the implementation of Val IT framework, the application
is Kotter’s model for change management is arguably quite effective considering the
management of change required to promote value creation and excellence in terms of services
and solutions’ delivery. Firstly, the sense of urgency has been created for making investments
on IT (Hornstein 2015). During this step, the organisational memebrs are engaged together to
discuss about the challenges faced such as the lack of understanding of IT expenditure, poor
technical skills and capabilities, etc., which should be overcome. The coalition has been

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created by creating awareness among people and by assigning the right roles and
responsibilities to individuals for the management of accountability and fulfilling the
responsibilities effectively too. The vision of change has been communicated to make
everyone share their individuals opinions, furthermore helped in aligning the change
perspectives with the goals and objectives achieved (Ningsih et al. 2013). The manager or
leader made sure to maintain a good organisational structure and at the same time, created
short term wins through management of organisational policies, principles and automation
processes too. The needs for development of individuals were assessed, based on which,
training programs had been arranged by making investments, which further created
convenience in encouraging the staffs to empower themselves towards the achievement of
organisational goals and ejectives (Parker et al. 2013). Lastly, the IT investments and
integration of corporate culture into the Portfolio management further helped in allocation
and management of both human and financial resources effectively, thus, improved the
organisational performance and ensured optimisation of investment portfolio performance
aligned with changes effectively.
Conclusion
The report was presented to discuss about the aspects of governance and change
management in digital business. The rationale was actually the problems faced such as the
issues related to organisational structure, communication gaps along with the poor decision
making, poor value creation of IT and most importantly, investment failures. Based on the
case study, the benefits that could be derived from ICT investments were understood, which
enabled bringing change with the application of Val IT framework required to manage the
budgetary aspects and at the same time, manage the resources and assets properly to
overcome he barriers. The investments for IT enabled Governance further had been supported

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by the Kotter’s model for change management, which also helped in bringing change
coalition, furthermore contributed to the transformation of business and ensured proper
optimisation of investment portfolio performance aligned with the corporate changes to be
done.
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