This approach emphasises on structures, relationships, and processes of IT organization to be used toward development and control of IT/IS resources internally (Korac-Kakabadse, 2001). This field concerns with the adoption of best practice of IT function, providing an extensive predefined process and a more uncompromising, transparent framework, referring to a set of processes that management must do (Korhonen et.al., 2009). Researchers who study IT governance as a compliance process would introduce COBIT and ITIL as the standards, providing sets of exhaustive conformance for the quality of IT in an organization (Sallé, 2004).
While COBIT provides many beneficial aspects such as a direction, as an overall checklist in an extreme audit styles, …show more content…
Yet a question of how centralised control should be exerted would still be highlighted. Moreover, internal contingencies such as IT leaderships’ understanding of business goals are necessary in order to fill the gap, which leads to an alignment initiative.
2.2 IT Governance as Strategic Alignment
This perspective of IT governance has its main goal of achieving the maximum business value of an enterprise, by using effective management of risk, performance and resource control i.e., strategic alignment. Much of the literature agrees that a clear leadership and guidance from management level are the key to strategic alignment, in which is a core of IT governance. (Van Grembergen, 2004; Webb et al., 2006).
Normally an IT strategy is compelled to focus on IT excellence and cost, in which does not translate into success by itself (Licker, 2007). Conversely, the benefits on IT and business can be achieved by involving an IT/Business strategy to the business and environmental imperatives (Weill and Ross, 2004). This approach of IT governance is studied as a practice, which in turn leads to superior IT, greater business value and enhance return on assets (Beimborn, 2009; Tallon et al., …show more content…
It implies that firms are a bundle of resources and assets. According to Bharadwaj, IT assists firm in shaping a complementary resource into capability; one that is rare, more difficult to imitate or substituted. Hence, a firm with higher IT capability can significantly impact and sustain superior performance (Bharadwaj, 2000). This aligns with IT governance strategy using the synergy of IT infrastructure, human IT resource and IT-enabled intangible via compresence. Although IT is considered intangible and strategic resources, it cannot strategically contribute without the mediate factors i.e., learning process and complementarity of resources and capabilities in the organizational context (Korac-Kakabadse,
While COBIT provides many beneficial aspects such as a direction, as an overall checklist in an extreme audit styles, …show more content…
Yet a question of how centralised control should be exerted would still be highlighted. Moreover, internal contingencies such as IT leaderships’ understanding of business goals are necessary in order to fill the gap, which leads to an alignment initiative.
2.2 IT Governance as Strategic Alignment
This perspective of IT governance has its main goal of achieving the maximum business value of an enterprise, by using effective management of risk, performance and resource control i.e., strategic alignment. Much of the literature agrees that a clear leadership and guidance from management level are the key to strategic alignment, in which is a core of IT governance. (Van Grembergen, 2004; Webb et al., 2006).
Normally an IT strategy is compelled to focus on IT excellence and cost, in which does not translate into success by itself (Licker, 2007). Conversely, the benefits on IT and business can be achieved by involving an IT/Business strategy to the business and environmental imperatives (Weill and Ross, 2004). This approach of IT governance is studied as a practice, which in turn leads to superior IT, greater business value and enhance return on assets (Beimborn, 2009; Tallon et al., …show more content…
It implies that firms are a bundle of resources and assets. According to Bharadwaj, IT assists firm in shaping a complementary resource into capability; one that is rare, more difficult to imitate or substituted. Hence, a firm with higher IT capability can significantly impact and sustain superior performance (Bharadwaj, 2000). This aligns with IT governance strategy using the synergy of IT infrastructure, human IT resource and IT-enabled intangible via compresence. Although IT is considered intangible and strategic resources, it cannot strategically contribute without the mediate factors i.e., learning process and complementarity of resources and capabilities in the organizational context (Korac-Kakabadse,