Information Systems Strategy and Governance
Information Systems Strategy and Governance
Information systems (IS) strategy aligns IT investments with business goals. Governance ensures that IT delivers value, manages risk, and optimises resources. Key concepts include the strategic grid (support, factory, turnaround, strategic), which classifies the impact of IT on operations and strategy; ITIL for service management; COBIT for IT governance; and enterprise architecture frameworks like TOGAF.
Candidates should understand the difference between IT governance and IT management: governance is about decision rights and accountability; management is about executing decisions. The board is responsible for governance, often through an IT steering committee. Data governance (quality, security, privacy) is also crucial.
Traps include conflating IT strategy with IS strategy (IS strategy focuses on information and systems, while IT strategy focuses on technology infrastructure), and assuming that technology alone delivers value; benefits come from effective use and change management. Another trap is ignoring legal and regulatory requirements, such as data protection (e.g., GDPR).
Worked example / rule of thumb: When assessing an IS investment, use the IT value framework: consider benefits (efficiency, effectiveness, innovation), costs (total cost of ownership), risks (security, obsolescence), and alignment with business strategy. A simple rule: if the investment does not support a strategic objective or a critical operational need, it is likely a low priority.
Remember that IS governance structures vary: centralised, decentralised, or federal. The choice depends on organisational culture and business needs.