Information System Report: IT Governance, Business Value, & Strategies

This report delves into the significance of Information Technology (IT) within organizations, focusing on the strategies to enhance its value and the role of IT governance. It outlines the steps IT organizations can take to add value, such as optimizing vendor relationships, assessing employee skills, implementing robust IT governance, providing training, and streamlining financial procedures. The report also examines the crucial role of IT governance in aligning IT with business objectives, ensuring effective decision-making, and managing risks. It highlights how IT governance supports enterprise architecture, measures business growth, and facilitates the strategic integration of technology to drive business value. References from Fukuyama, Duffield, Tricker & Tricker, and Van Grembergen & De Haes are included to support the analysis.

Running head: INFORMATION SYSTEM
Information System
Name of the Student:
Name of the University:

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1. Steps that IT organization takes to ensure of adding value to the
organization
Business IT organization is used of Information Technology (IT) in order to achieve the
business objectives. It provides value to the organization by improving the financial performance
and achieving a competitive advantage (Fukuyama, 2017). The steps used to add value to the IT
organization are:
i. The IT vendors from which the organization is using the IT services are researched
properly to increase the pricing.
ii. The organization negotiates with the vendors for enhanced pricing of their IT services
and purchased in huge amount to increase the savings (Duffield, 2014).
iii. The organization determines whether their business is running overtime or not. The
coordination as well as organizational skills of the employees is determined to add value
to the organization.
iv. The organization should have good IT governance which increases the company’s
operations and IT services (Tricker & Tricker, 2015).
v. Training is provided to the employees who have lack of knowledge on IT; therefore they
are trained to handle of IT services and equipments. Regular appraisal is required among
the staffs to increase the level of competency into the team (Van Grembergen & De Haes,
2017). It enables the training needs to improve quality as well as quantity of the work
which is carried out.
vi. The IT organization should optimize the purchase-to-pay as well as order-to-cash
procedures to achieve the cost savings.

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vii. The organization should create a good IT culture into the workplace so that the workers
are satisfied with their working environment.
2. Role of IT governance into the business value in IT
In the IT organization, the IT governance is such a framework which provides formal
structure to the organization so that the business can achieve their goals and strategies. Following
are the roles of the IT governance into the business value into the IT organization such as:
i. IT governance aligns with the business to support of evolution into the
architecture of the enterprise in order to deliver consistent business values
ii. They help to measure the growth of IT business organization and their respective
successes (Fukuyama, 2017).
iii. They establish of chain of responsibilities, authorities as well as interaction to
provide with right decisions
iv. The IT governance understands the strategies of the business along with
alignment of the technology strategies with the business strategies
v. They provide of simplicity among the business strategies along with IT initiatives
to link among the business objectives (Van Grembergen & De Haes, 2017).
vi. They approve of the capital funds for the IT organization
vii. IT governance focused on the information system along with performance as well
as risk management (Duffield, 2014).
viii. Assure that IT investment generate of business values and mitigate of the risks
which are associated with the IT (Tricker & Tricker, 2015).

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ix. Implementing of organizational IT infrastructure with proper flow of information,
IT applications along with IT infrastructure
x. The IT governance includes of management as well as leadership responsibilities
for the portfolio management, project risks and changes (Van Grembergen & De
Haes, 2017).

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References
Fukuyama, F. (2017). State building: Governance and world order in the 21st century. Profile
Books.
Duffield, M. (2014). Global governance and the new wars: The merging of development and
security. Zed Books Ltd..
Tricker, R. B., & Tricker, R. I. (2015). Corporate governance: Principles, policies, and
practices. Oxford University Press, USA.
Van Grembergen, W., & De Haes, S. (2017, January). Introduction to IT Governance and Its
Mechanisms Minitrack. In Proceedings of the 50th Hawaii International Conference on
System Sciences.