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Governance which framework to use?

July 30, 2008

In a recent study, conducted by GAO (2005) the CIOs of 20 US leading private-sector organizations were interviewed about their responsibilities and about IT governance. The results were also compared with a similar study done earlier towards federal CIOs. In summary, most of the private-sector CIOs held responsibilities for nine of the 12 defined functional domains (Figure), with the top five responsibilities being:
(1) systems acquisition,
(2) IT capital planning,
(3) information security,
(4) IT human capital,
(5) e-commerce.
Only in the areas of information dissemination and disclosure, information collection and statistical policy, fewer (half or less) CIOs held a responsibility. In most functional areas, there was little difference between the private and federal sectors. Only in the functional areas of enterprise architecture, strategic planning, information collection, and information dissemination and disclosure, the difference between the private- and federal-sector CIOs was greater; in each case, fewer CIOs in the private sector had these responsibilities.

Another interesting benchmark is obtained from the “IT governance global status report” issued by the IT governance Institute in 2006. This research was targeted to reach members of the C-suite (i.e., CEOs, CIOs, COOs, CFOs, and CTOs) to determine their sense of priority about IT governance and their needs for tools and services to help assure effective governance. Six hundred and ninety five interviews were conducted from a random sample of companies with a representative distribution according to geography, size of the organization, industry sector, and job function of the respondent.

The results, shown in Figure, are somewhat disappointing: only 17 percent of the companies have already implemented IT governance solutions or frameworks and a fairly high percentage (36 percent) of the respondents are not even considering the implementation of an IT governance solution or framework.

shows the implementation status by industry sector indicating that the financial services business is leading with 31 percent in implementing IT governance

Some mechanisms and implementations within an organization may not always be categorized as IT governance implementations, although in practice they do contribute to a good IT governance status. Figure shows an overview of the implementation status of those ‘partial’ IT governance measures. As a result, this research found that only nine percent of the responding companies are not considering implementing any (partial) IT governance solution.

displays the IT governance frameworks which are selected by the organizations that have implemented, are in the progress of implementing or are considering implementing an IT governance solution. About one-third of these companies use internally develop frameworks while the others use a variety of frameworks.

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