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IT Governance: the challenges of IT and business leadership in the era of digital transformation
Improving the performance of IT as a business area is a continuous expectation from company management. In a world of digital transformation, business leaders are constantly faced with the challenge of implementing and using new IT (Information technology) and OT (Operational technology) tools with unknown opportunities and risks before making business decisions. Without clear, professionally based guidance and recommendations, decisions can have unforeseen consequences. Choosing the wrong technology, even a missed opportunity, can have a significant impact on the performance of a company's senior management.
This means that senior IT managers in all segments in general, but especially in large corporate or holding company environments, have to deal with a highly diversified, attention-demanding and high-risk organisational structure and set of tasks. Meanwhile, they are subject to a wide range of government, holding or business expectations.
The role of effective IT Governance: a guide to making the right decisions
Managing these expectations requires a well-designed, flexible IT governance strategy and framework that responds appropriately to the risks involved and effectively implements EU, national and corporate directives.
At the same time, it avoids excessive bureaucracy and facilitates the achievement of the company's business objectives, while being able to anticipate and mitigate emerging risks as necessary.
The mandate of IT managers: why is proper empowerment important?
Although critical, the reality is that IT governance strategies are ineffective due to their limited mandate, scope or cumbersome management practices. It is therefore vital for IT leaders to continually review their approach to IT governance policies to adapt to rapid changes and make new practices available across the enterprise.
In turn, corporate leadership must ensure that IT managers - and the decision-making teams that support them - are given the mandate and authority they need to manage continuous change to a high standard.
At the same time, IT leaders must leverage their authority to drive the development of a service-oriented IT organization within the framework of enterprise-wide risk management.
This includes focusing on the integration, design, and harmonization of:
IT governance functions (regulations, policies, processes, standards, and guidelines),
newly introduced methodologies,
technologies.
The business impact of IT Governance: efficiency and competitive advantage
The development of business-oriented IT is therefore a common interest at company level, whose main objective is no longer primarily to provide IT services to the business areas, but to be an active participant in the achievement of business objectives, from strategy building, through data asset management, to the measurement of daily activities.
Ultimately, in this new role for IT, a well-functioning IT governance framework will support the core business activities of the company, significantly increasing its efficiency.
About author
As a Senior Consultant, Gyula Bach has been a valuable member of the Stratis team for six years, currently working as an IT and OT expert in the energy sector. He has contributed to numerous projects within the energy industry, including the establishment and organization of BI entities, the implementation of data warehouses, and the auditing, reorganization planning, and modernization of production control organizations and IT-OT systems. Additionally, he plays an active role in the research conducted by Stratis, focusing on the application of IT changes in the energy sector.
