IT Governance focuses specifically on information technology systems, their performance and risk management. The main goals of IT Governance are to assure that the investments in IT result into business value, and to mitigate the risks that are associated with IT. This can be done by implementing an organizational structure with well-defined roles for the responsibility of information, business processes, applications, and infrastructure.
IT Governance should be viewed as how IT creates value that fits in the overall Corporate Governance Strategy of the organization, and never be seen as a discipline on its own. According to this approach, all stakeholders would be required to participate in the decision-making process. This creates a shared acceptance of responsibility for critical systems and makes sure that IT-related decisions are made and driven by the business and not the other way around.
Why IT Governance?
Why is IT Governance necessary? The answer is simple: IT Governance is needed to ensure that the investments in IT generate value-reward and mitigate the risks that are associated with IT (avoiding failure). IT is central to organizational success especially when the IT is designing to bring about change in an organization. This change process is now the prime enabler of the new business models, both in the private and public sectors. Business transformation offers my risks, which may disrupt operations and have unintended consequences. The dilemma becomes how to balance risk and rewards when using IT to enable organizational change.