Vermont Teddy Bear Case: IT Governance with COBIT 2019 Analysis

This case study delves into the application of COBIT 2019 for IT governance at Vermont Teddy Bear (VTB). It begins by mapping stakeholder requirements to VTB's enterprise goals, followed by implementing the COBIT 5 Process Assessment Model alongside COBIT 2019 to evaluate process capabilities. The analysis justifies specific procedures for enhancement and highlights their significance. Tailoring these methods is achieved using the COBIT design toolkit, with targets demonstrated and justified to develop underlying processes. The study also utilizes the COBIT 5 self-analysis toolkit to record and summarize capability ratings. Key areas covered include identifying problems and issues with the COBIT 5 framework, introducing the COBIT framework, process improvement approaches, risk assessment, IT strategy development, and proposals for business and IT alignment at Vermont Teddy Bear. The report emphasizes the importance of stakeholder engagement, understanding enterprise goals, and leveraging technology platforms for improved performance and reliability.

Understanding COBIT 2019
(Case study of Vermont Teddy Bear)
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Executive Summary
In the study, the stakeholder requirements are mapped. These are linked to the goals of
the enterprise of VTB or Vermont Teddy Bear. Then the assessment model of the
CVobiT5 is implemented with CobiT 2019. It is helpful to rate the various process in
terms of the capabilities of the process. The VTB is analyzed with justification. Apart
from this, specific procedures are found out through enhancements and the significance
are crucial. After that, the chosen methods are tailored with the help of the CobiT
design tool kit’s companion tools. Next, the targets are demonstrated and are found to
be justified in the study in developing the underlying process. Next, the self-analysis
tool-kit of CobiT5 has been recording and summarizing t6he capability ratings.
Keywords: COBIT 5, COBIT 2019,
1. Introduction
COBIT provides the business process owners and management with the model of
information technology governance. Here, delivering the values from information
technology is useful. It is helpful to manage and understand the risks related to
information technology.
In the following report, the stakeholder’s needs are mapped with stated
enterprise goals. This is in the cascade that has been best meeting the VTB. Next, the
CobiT5 Process Assessment Model is applied along with CobiT 2019. This is to rate the
distinct process as process capabilities. Then the VTB is evaluated along with
justification. Next, a particular method is determined for development and justifying the
importance. Then the means chosen is tailored through the companion tool of CobiT
design tool kit. Later the targets are discussed and justified recommending to develop
the primary process. Then the CobiT5 self-analysis tool-kit to record and summaries the
ratings of capabilities.
2. Introduction of the chosen EGIT
framework:
2.1. Identification of problems and issues:
The COBIT 5 framework needs the inputs and participation from various sectors
of the organization. Further, different levels of commitment have been leading to
diverse resource allocation and priorities. Hence, one can see conflict taking place in
communications, poor quality of deliverables, poor execution and missing of deadlines.
Moreover, the requirements for the framework are highly specific.
CobiT 2019 VTB Report – 3807ICT or 7807ICT (omit one)1

2.2. Introduction of the chosen EGIT framework:
The core task of the COBIT framework has been updating the principles of
COBIT. This layout is considered as the structure of the entire frame. Here, the latest
ideas are introduced and the various terminologies are explained (Huygh et al., 2018).
Apart from this, the COBIT Core Model and its different management and governance
objectives have been providing the platforms to implement the program of governance.
Besides, the performance management system is upgraded and permitting the flexibility
in using the measurements of maturity and measurements of capabilities. Next, its focus
areas and design factors have been offering extra practical guidance over the flexible
adoption of the EGIT framework, irrespective of the particular projects and complete
deployments (Mulyanto, 2018).
2.3. Approach towards process improvement:
The areas of importance and information-technology governance for the enterprise are
listed below.
 Various trends in technology.
 Getting more upgraded with the updated standards and various methods of
working.
 Focussing on the area concepts
 To be seen as more authoritative
 Better instrument to control performances and adding the latest features of
online collaborations.
 Supporting decision making.
2.4. Assessment of risks:
The risks include the following.
 The stakeholders with a better understanding of the risk effects and present
states effect across the enterprise.
 Guidance regarding how one can control the risks to various levels. This involves
a considerable set of measurements.
 Guidance on the way to set up the proper culture of risks for the enterprise.
 Guidance on risk analysis enabling the stakeholders to consider the expense of
mitigation and needed resources against the exposure loss.
 Scopes of integrating the risk management of IT with the risk of enterprise.
 Developed communication and analysing every external and internal
stakeholder.
2.5. Steps towards IT strategy development:
 Focusing on the design and areas factors providing more clarity over developing
the system of governance of needs of the business.
 Better alignment with various worldwide standards, best practices and
frameworks for supporting the relevance of the structure.
 Constant updates are to be released by rolling.
 Additional tools for supporting the business while developing the governance
system that is the best fit. This would make the COBIT 2019 more prescriptive.
 Better tool for measuring the IT performances and aligned to the CMMI
(Gantman & Fedorowicz, 2016).
2.6. Proposal to gain the business and IT alignment in the Vermont
Teddy Bear:
The Vermont Teddy Bear is devoid of robust information systems. Through
focusing at their production, forecasting and marketing around the product lines, there
are various areas can be analyzed. Having technology platforms like Enterprise
Resource Lanning packages, VTB must consider the usage of the problems of
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Understanding COBIT 2019
information management systems (Haes & Grembergen, 2016). Decentralizing and
outsourcing of the firm consists of a distinct line of products and channels. This is of
much importance in this place. To a greater extent, the Vermont Teddy Bear has
required to consider the advantages in the long term. This is helpful to get from
utilizing the ERP packages.
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3. Application of CobiT2019 and
CobiT5:
3.1. Mapping of needs of stakeholders and related enterprise goals
for best meeting the VTB:
Updated goal cascades:
The goals of alignment are consolidated, decreased, upgraded and then clarified
as needed. They can be organized through balances scorecard point of view and
involving the instance metrics for measuring the goal achievement.
The specification of the factors of various stakeholders includes the following.
 Identifying the efficient effects over the markets
 Analysing the possibility that they can continue
 Categorizing then as per challenges and strengths.
 Ranking as per the terms of how effectively the organization can perform in
every category.
Furthermore, the internal weaknesses and strengths analysis has been helpful to
evaluate the current performances of the Vermont Teddy Bear Co. Inc as per the
development, logistics, operations, finances, marketing, information systems and human
resource management. Here, the reason behind the analysis is to deliver the data
regarding gap analysis. Further, the present performance of Vermont Teddy Bear Co.
Inc and the intended vision performance is needed to raise customer satisfaction and
market share successfully (Pereira, Ferreira & Amaral, 2017).
It is evaluated that various weaknesses and strengths of VTB can be determined
through the analysis of the internal structure. It has been coming from the core of the
organization. The method has been highly vital since VTB Co. Inc has needed to develop
the latest goals. This is helpful to maximize the position as compared to other financial
sectors. Next, regarding the opportunities, there are customer perspectives, service and
productions, greater facility of manufacturing and retail stores. However, the
competitors are the threats in this case. They have been coming in the form of business
of items like greeting cards, flowers and chocolates.
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Figure 1:“Illustrating an effective stakeholder model”
(Source: Pane et al., 2018)
It must be reminded the stakeholders are the primary constituents of Vermont
Teddy Bear. They are the primary constituents having the stake of how VTB can
operate. Vital stakeholders include the employees, owners and investors, groups,
advocacy, regulatory, competitors, suppliers and customer. The future generations and
society at large are essential elements of the stakeholder map. They have been
introducing the concerns of the sustainability and natural environments.
Moreover, top-level decisions are often made with the analysis of the extent to
which the VTB can generate the values. These are helpful to satisfy the necessities of
multiple stakeholders. For instance, the business of VTB has been producing the cost
for the customers. This is through product quality and pricing. Apart from this, the
industry can create several stakeholders for the suppliers. This is done through various
advantages of long-term relationships (Pereira, Ferreira & Amaral, 2017).
It must be reminded that for VTB, its most essential business components is its
primary stakeholders. They have highly demanded at the desires for the lesser prices,
higher quality great services and on-time delivery. Organizational stakeholders are
affected directly through the behaviour of the organization and holding the stake in the
performances. VTB has included the social liabilities in serving various interests of the
stakeholders. They involve the following.
Employees They are contractors and employees working for
VTB.
Customers The clients and consumers have been involved in
purchasing the goods and the use of services of VTB.
Suppliers This involves the economic, material, information and
human resources.
Owners They are the creditors, investors and stockholders
claiming ion the profits and resources of VTB.
Competitors They have been producing similar services and goods.
Regulators This includes the national government agencies, state and
local that have been enforcing the regulations and laws.
Interest groups This includes activists, community groups and
representing the interest of society and citizens.
Various attributes to be checked for the stakeholders and the questions to ask are listed
below.
Firstly, the ways of determination of stakeholders is to be analysed. It must be
analyzed that who are involved in paying for the project and receiving the profits and
deliverables from the projects. From VTB and its client organizations, it is to be found
out who has been implementing the plan. Further, the expert from the domain of the
projects at VTB is to be identified (Bartens et al., 2015).
Next, the interest is to be determined. The direct benefits of the stakeholders are
expected to be received from the projects. The anticipated results due to the project
changes are needed by stakeholders. Then, the conflicts of interest taking place among
the stakeholders are to be determined. Further, the influences are to be identified. The
legitimate authority for the stakeholders on the organization, controlling of resources
and project assets are to be found out (Nugroho, 2017). Next, the degree of influences
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and the power of negotiation for the stakeholders identified has been carried in the
organization. Lastly, the impacts are to be analysed. Here, impact the stakeholders
could be made on the project and the effects on the project success are to be
determined.
Understanding enterprise goals:
Through using the CDN services and Internap’s colocation, the VTB can easily
and quickly roll various storefronts and different sub-brands having minimal technology
and time investment. The traffic to VTB sites from multiple mobile devices has included
tablets and phones. This has raised from 50% every year. This consists of the capability
of optimizing the experience of contents for every complicated user device. The CDN
features of the Internap’s that are created over TCP acceleration is delivered to four
time quicker loads of page. It comprises of a higher quality of customer experiences and
less buffering over the mobile devices and PCs. The reliable IP service of Internap’s
backed through the SLA. It has assured that the websites of VTB have always been
present.
Moreover, it is seen that the retailers are present under high pressure to meet
the goals of the sales within contracted frames of time. It must be reminded for the
organizations depending on the sales of the Internet for matching the numbers, no room
is present for errors while selecting the CDN and various services of IT infrastructures.
Apart from this, the Internap has provided an overall package for the VTB. This is a
flexible platform that can support the demands of variable traffics. This is done through
delivering the performance and reliability needed to assure the satisfactory experiences
for the end users.
Discussion on justifications:
Moreover, these forward-looking statements have been including various
accounts that are related to the performance of IT Infrastructure services. This also
consists of the expected benefits to be gained from that. These type of comments has
not been guaranteeing the further performances and including uncertainties and risks
for VTB. Moreover, there is a vital factor that results differ in a material way from those
who have forward-looking statements. Here, the elements involve the real performances
of the services of IT infrastructures. This includes the capability to finish the expansion
of the data centres that are controlled under the intended timeframe. Furthermore, it
involves the ability to sell the space of the data centre. This includes the retaining and
attracting of the first talents. This also consists of the capacity to react successfully to
various technological alterations. It consists of the availability of services from the
providers of Internet network services delivering loops of network access and different
loops over favourable terms for VTB. Here, the failure of the third party suppliers has
been providing the services and products on favourable conditions. It includes the
failures of centres of network operations, network access points, computer systems and
data centres. It also includes the capability to deliver or enhance the services of IT
infrastructures to the customers. This also involves the ability to secure intellectual
property. It is also seen that provided with the uncertainties and risks, the investors
have been able to put the undue dependence on various statements that are forward-
looking as the prediction of real results.
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Figure 2: “Design Factors Are New to COBIT 2019”
(Source: Tello, Ruiz & Yoo, 2018, pp. 304-310)
4. Application of CobiT5 Process
Assessment Model and CobiT 2019:
4.1. Implementing the CobiT5 Process Assessment Model:
The Cobit 5 analysis process measures the overall extent to which the particular
method has been gaining specific attributes that are relative to that process. The
process attributes include the following.
 Constant optimization
 Process innovation
 Process control
 Process measurement
 Process deployment
 Process definition
 Work Product management
 Performance management
 Process performance
4.2 Implementing the Cobit 2019 model:
The COBIT 2019 comprises of the most updated form of the COBIT system. It
consists of the revised and latest data and developed guidance for implementing and
designing the properly sized program of governance. This is to be done by
concentrating on the advantages. This is done by checking the boxes of the schedule of
the project steps. This includes the sign of successful deployments for VTB. Apart from
this, the starting point is to be considered. It is seen that most of the enterprises consist
of governance structures in the proper place. It is created over successful efforts apart
from trying to discover the latest approach. Apart from this, the prior developments
generated through implementing the COBIT 5 and practices and standards have
required to get reworked. The COBIT 2019, can be created to undertake events due to
the efforts of an enterprise’s constant expansion.
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To rate VTB, the individual processes can be rated as per processability. This is
done from generating productivity and efficiency under process to control IT. Moreover,
it is useful to create trust and value from an information system with the help of
governance. Besides, it is helpful to set that apart from the residue of the folks that
residual un-certified. Further, it raises the ability and providing credibility. It has been
setting the benchmark to analyze the best practices of the industry.
Through deploying the COBIT 9, the capability analysis for the measuring of data
from a normal distribution for VTB can be done. Through this VTB can be rated 8 out of
10. It performs the analysis capability for the information to be assumed at a random
sample from the normal distribution. This calculates the indices like Cpk, estimating the
DPM or defects per million and help to determine the SQL or Sigma Quality level where
the process has been operating. This is able to control the two-sided limits of the
asymmetric specification, and the borders of two-sided asymmetric along with one-sided
limits. Here, the confidence limits for the standard indices of the capability is also
requested. The input of the process also consists of a minimum of one and more
measurable property used for specifying the outputs. It is analyzed in a statistical
manner and the data of the output displays the normal distribution where the process is
demonstrated through the average or mean and standard deviation. This process also
5requires to be deployed with proper process controls at the place. The control chart
analysis is helpful to find out whether the process is present under statistical control.
However, as the process is under statistical power, the ability becomes meaningless.
Thus, the process capability includes the common reason variation and not any
particular cause variation. Hence, the output of the process is intended to meet the
requirements of the customers, engineering tolerances and specifications. In this way,
the process capability study of VTB can be done to find out the extent where the process
can witness the expectations. Hence, the capability of the process in meeting the
specifications is expressed as one number through an index of process capability. This
can also be analyzed through controlling charts. At both cases, there is the necessity of
running the process to retrieve sufficient measurable output. This makes the process
stable and the process variability and mean estimated reliably.
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Figure 3: “The COBIT History”
(Source: Pane et al. 2018, p. 012051)
5. Discussion on particular methods
determined to improve and justify the
importance:
This can be done in the following ways.
Sharper clarity:
The Cobit2019 consists of transitioned to refer to the elements of the system of
governance. This is a much more precise characterization. Across this publication, the
term has been lesser academic and more applicable helpful for the users in streamlining
the timeline of adoption.
New focus of areas:
The sectors involve the DevOps, cloud computing, digital transformation,
cybersecurity, small and medium sized businesses and so on.
New design factors:
Various new factors have been influenced through the designing of the
governance system of the enterprise and positioning the success of VTB is utilizing the
technology and information. This involves the technology adoption strategy, methods of
IT implementation, sourcing model regarding IT. This also consists of the role of IT,
requirements of compliance, the landscape of threats, size of danger, risk profile,
enterprise goals and strategy of the enterprise.
Figure 4: “COBIT Design Factors”
(Source: Merhout & O’Toole, 2015, pp. 5-13)
Findings from VTB:
 It is seen that VTB has needed to venture into the latest market segments
 They should be assuring the reliability and stability for the e-commerce
platforms particularly during the peak times.
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 They should be coordinating marketing, production, forecasting around
the product lines.
 They must develop the customer relationship aiding the strategies of
marketing of VTB.
 Besides, the supply chain management must also be utilized for
enhancing the various operational capabilities.
Processes for implementing the findings:
To perform this the best breed approach much be performed. Apart from buying
any one ERP package, distinct packages are to be bought. This should be provided
nearer to the optimal functionality. It must be reminded that the reason is that VTB’S
cash reserves are limited. They are unable to afford the single ERP package.
The strategies to be adopted for the findings:
 This can be done by analyzing the functionalities of the current IT system
with the help of suitable documentation.
 The unwanted complex middleware must be eradicated.
 Lastly, the incompatible applications are to be removed.
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6. Tailoring of the process through the
CobiT design companion tool:
It is seen that for more than a couple of decades, the governance framework of
COBIT for the useful enterprise information and technology. It has been helpful for VTB
to derive much value from various information technology resources. The current
iteration of the framework of the world-renowned is developed in that legacy. It has
been updating and including multiple information. Further, it has been offering more
kind of practical guidance to tailor and deploy the proper-sized program of governance
to the distinct requirements of the enterprise (Quezada-Sarmiento et al., 2017).
Integration between the maturity model of CMMI and the present model of capability:
The performance management of COBIT 2019 has been leveraging the present
model of VTB and the maturity model of CMMI through various principles. This is easy
to use utilize and analyze. It is consistent with and supporting the conceptual model of
COBIT. It has been providing relevant repeatable and reliable outcomes. Moreover, it is
flexible and supporting various kinds of analysis (Wolden, Valverde & Talla, 2015).
The COBIT 2019 toolkit design guide:
The designing for the solution of information and technology governance is
considered significant for COBIT Framework. As there has been no such aspect as the
only-size-fitting every system of governance for the information technology of VTB, they
should be tailoring the system of governance. This is to maximize the value out of the
information technology. The guide of COBIT 2019 supplies the blueprint for the
enterprises with the use of various factors of design. In this way, the publication can
explore the implications of different coefficients of design and effects von the designing
of the solution of the governance. Next, it has been presenting a four-step flow of work
to design the solution of enterprise governance for VTB. This considers all the factors of
potential design. It is helpful to generate a system of customized governance. This fits
the distinct necessities. In this way, it has been providing guidance to use the COBIT
2019 guide of implementation under tandem, with the design guide (Nguyen Huynh Anh
et al., 2018).
Additionally, the Design Guide of COBIT 2019 has been offering the toolkit of a
companion. This is the Excel spreadsheet that has been based on the tool helping to
prioritize the particular aspects of design. This is considered for the customize program
of governance. Thus the users are able to plug in different values from their enterprises
under the tool. This tool is helpful for VTB to find out the relative significance of the
management and governance objectives for the enterprise. The guidelines of Design
consist of various instructions in step-by-step. This is to utilize the toolkit to help the
enterprise in creating a governance system that is tailored (Noor & Ghazanfar, 2016).
7. Using the self-assessment tool-kit of
Cobit5 to record and summarize the
ratings and capability:
The COBIT 5 is the stand-alone publication. This can be used by VTB in
performing the lesser rigorous analysis of the abilities of the IT processes. It is the
precursor to undertake a more evidence-based and thorough review. It is based on the
PAM or the COBIT Process Assessment Model. Through the COBIT 5 under the
assessment program of COBIT, there is no necessity of evidentiary requirements. This
never needs the usage of COBIT PAM (Percheiro et al., 2017). Here, sufficient data from
the COBIT PAM and the total self-analysis template is supplied for simplifying the
process and eradicate the necessity of reference of the additional publications. This
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takes place under the COBIT analysis program. However, the users can be encouraging
for referring the COBIT Assessor guide and COBIT PAM.
Summarizing the ratings of VTB and the capabilities of COBIT 5:
 The skills include the detailing of how to perform the primary self-analysis of the
VTB’s present IT process capability levels against the COBIT 5.
 Through the COBIT 5, there has been standalone guidance to support the
primary approach of self-assessment or rating for VTB.
 Defining the responsibilities and role to perform the analysis.
 Providing the options to scope the analysis or rate VTB.
 Defining the kinds of pieces of evidence that must be collected.
 Providing guides to find out the level of capability of the IT process.
8. Risk assessment:
Analysing the case as per the determined categories of risks and the scenarios:
Risk categories Scenarios
E-commerce
business model
The chances are present in terms of various aspects. They
include the following. It provides customer dissatisfaction,
customer deceit, service and product failure, legal liability and
theft of intellectual property. This also involves the privacy and
security breaches, website issue and Internet problems. Thus, the
scope of the model of e-commerce model of VTB is made in a
careful way. Here, every model has a clear implication as per
strategy and business planning.
Intellectual
property
This is vital to be protected since the businesses have not
realized the total benefits of the interventions. This is inclined to
focus less on development and research. Moreover, instead of
intellectual property security for VTB, the exporters have been
witnessing unfair competitions abroad. The non-exporters has
also been facing imports ate the home and the business has been
facing the safety, health and legal risks. This from the threat of
the counterfeit resources entering the chains of supply (Andry,
2016).
Privacy and
security
The security of the website of VTB includes the employee from
criminal activities, customers, suppliers, protection of the
company. This is the complicated consideration of the small
business engaged in business e-commerce. Further, the Internet
is a worldwide playground for hackers. This is less risky in
stealing the Internet (Iqbal, Widyawan & Mustika, 2016). This is
because of the anonymity over the Internet looking various
criminals under legitimate-looking identities. This has been
permitting to put the fraudulent orders along with online
merchants and then steam data through intercepting the e-mail.
9. Providing recommendations to
manage the risks on the basis of the
analysis of risk levels, risk tolerances
and risk appetite:
The premise of risk appetite:
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