It Governance Is An Essential Component Of Modern Business Essay

1180 Words Mar 7th, 2016 5 Pages
IT Governance is an essential component of modern business. With increasing spending on technology and growing security risks, the effective deployment of IT resources can help give a business a competitive advantage over other businesses in the same market. IT governance can be composed of several components. There are several ways to approach IT governance in an organization as well as several best practices a company can undertake. A study by the IT Policy Compliance Group found that companies with the most mature IT governance practices were found to have constantly higher revenue, profits and customer retention, while also having lower risks and loss of customer data. This shows that IT governance is an essential practice for modern companies. IT governance can cover a wide scope of practices and components. Some key components of IT governance include data protection, developing standardized IT procedures, frequent monitoring of IT processes, proper training of employees and mapping processes and frameworks for IT governance. (Musthaler) One understanding breaks the concept of IT governance in to five domains, an IT framework, strategic management, benefits realization, risk optimization and resource optimization. IT framework focuses on using industry best practices to formalize IT management as an aligned strategic long term business goals of the company. Strategic management in IT governance is used to continually monitor the IT framework to keep it aligned with…

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