The role of IT governance in digital operating models

Authors

  • Christian Hitz University of Economics, Prague
  • Karlheinz Schwer University of Economics, Prague

DOI:

https://doi.org/10.15549/jeecar.v5i2.210

Keywords:

Corporate Governance, IT Alignment, IT governance, ISO 38500.

Abstract

Many researches have dedicated their work in IT Governance and numerous methods, techniques and tools for making decisions to align IT to a business strategy were proposed in the last decade. In the meantime new digital business models developed rapidly and aligning business with IT have become more difficult ever. Governance frameworks are widely used to reduce complexity in the decision making process and organisations tend to use several topic related governance frameworks beside IT Governance. Different governance frameworks are related, dependent and interact under each other and since they all have their own method of measurement and evaluation, the interaction suffers of a lack of data consistency or they do not take all dimensions of decision making into account. Furthermore the lack of consistency is caused by definition of governance frameworks itself and lead to concurring goals among governing bodies. This paper proposes a design goal for a method of measurement by (1) critically review the existing state of art of measurement and evaluation concepts of governance frameworks by following a comprehensive review of the normative literature dealing with the measurement aspects of IT Governance and (2) analysing a dataset (n=51) of a preliminary study done in spring 2017 with Swiss companies.

Author Biographies

Christian Hitz, University of Economics, Prague

Christian Hitz is the lead lecturer in business intelligence at the Zurich University of Applied Sciences (ZHAW). He is also the head of the IT Strategy and Management office at the institute of business information technology. He works in analytics, data warehousing, business intelligence and data science since 1994. He is responsible for the BI Course Module at the ZHAW and supervisor of the BI curriculum. Christian Hitz holds a Master’s Degree of the University of St. Gall (HSG) in Information Management and is a PhD Student at the University of Economics in Prague, VŠE.

Karlheinz Schwer, University of Economics, Prague

The co-author Karlheinz Schwer is a PhD student at the University of Economics in Prague. He works as a lecturer and management consultant at the Zurich University of Applied Sciences in Switzerland. Prior to that, he worked as a management consultant on projects in various industries.

References

Ali, Syaiful; Green, Peter (2012): Effective information technology (IT) governance mechanisms: An IT outsourcing perspective. In Information Systems Frontiers 14 (2), pp. 179–193.

Baets, Walter (1992): Aligning information systems with business strategy. In The Journal of Strategic Information Systems 1 (4), pp. 205–213.

Bashir, Makhmoor; Yousaf, Anish; Verma, Rajesh (2016): Disruptive Business Model Innovation: How a Tech Firm is Changing the Traditional Taxi Service Industry. In Indian Journal of Marketing 46 (4), pp. 49–59.

Bracken, Jeff (2014): The Important Difference between Change and Transition. Available online at http://quality-texas.org/wp-content/uploads/2014/11/The-Important-Difference-between-Change-and-Transition.pdf, checked on 4/7/2016.

Bridges, William (1991): Managing transitions: Making the most of change: Perseus Books.

Brown, Allen E.; Grant, Gerald G. (2005): Framing the frameworks. A review of IT governance research. In Communications of the Association for Information Systems 15 (1), p. 38.

Brühn, Tim; Götz, Georg; Peitz, Martin; Rebler, Adolf; Schwalbe, Ulrich; Heinrichs, Harald et al. (2014): Die Modelle Uber und Airbnb: Unlauterer Wettbewerb oder eine neue Form der Sharing Economy? In Ifo Schnelldienst 67 (21), pp. 3–27. DOI: 10.3726/978-3-653-03858-3.

Ceruzzi, Paul E. (2003): A history of modern computing: MIT press.

Chan, Yolande E.; Reich, Blaize Horner (2007): IT alignment. What have we learned? In J Inf Technol 22 (4), pp. 297–315. DOI: 10.1057/palgrave.jit.2000109.

Cooper, Harris M. (1988): Organizing knowledge syntheses. A taxonomy of literature reviews. In Knowledge in Society 1 (1), pp. 104–126. DOI: 10.1007/BF03177550.

Deming, W. Edwards; Edwards, Deming W.; Study, Massachusetts Institute of Technology Center for Advanced Engineering (1982): Quality, productivity, and competitive position: Cambridge, Mass. : Massachusetts Institute of Technology, Center for Advanced Engineering Study. Available online at http://books.google.com/books?id=XLXbAAAAMAAJ.

Detsky, Allan S.; Garber, Alan M. (2016): Uber’s Message for Health Care. In N Engl J Med 374, pp. 806–809. Available online at http://www.aahs.org/medstaff/wp-content/uploads/UberNEJM2016.pdf, checked on 4/7/2016.

Eom, Mike; Kahai, Surinder; Yayla, Ali (2015): Investigation of How IT Leadership Impacts IT-Business Alignment through Shared Domain Knowledge and Knowledge Integration. Available online at http://pilotscholars.up.edu/bus_facpubs/21/, checked on 5/10/2016.

Fink, Kerstin; Ploder, K. (2008): Decision support framework for the implementation of IT-governance. In : Hawaii International Conference on System Sciences, Proceedings of the 41st Annual. IEEE, p. 432.

Gartner Group (Ed.) (2014): Gartner Says Digital Business Economy is Resulting in Every Business Unit Becoming a Technology Startup. Available online at http://www.gartner.com/newsroom/id/2865519, checked on 5/7/2015.

Goltsche, W. (2007): COBIT kompakt und verständlich: Der Standard zur IT Governance - So gewinnen Sie Kontrolle über Ihre IT - So steuern Sie Ihre IT und erreichen Ihre Ziele: Vieweg+Teubner Verlag. Available online at https://books.google.ch/books?id=15n79z6m98wC.

Haes, Steven de; van Grembergen, Wim (2015): Enterprise governance of information technology. Achieving alignment and value, featuring COBIT 5. 2. ed. Cham: Springer (Management for professionals).

Hanschke, Inge (2010): Strategic IT management. A toolkit for enterprise architecture management. Berlin: Springer.

Hernaus, Tomislav (2008): Generic process transformation model: transition to process-based organization. In EFZG Working Paper Series/EFZG Serija ?lanaka u nastajanju 08 (07), pp. 1–16.

Hevner, A. R.; March, S. T.; Park, J.; Ram, S. (2004): Design Science in Information Systems Research. In Mis Quarterly 28 (1), pp. 75–105.

Hevner, Alan R. (2007): A three cycle view of design science research. In Scandinavian journal of information systems 19 (2), p. 4.

ISO/IEC: ISO/IEC 38500:2015, Information technology — Governance of IT for the organization, 2nd Ed. 1st Version. Available online at https://www.iso.org/obp/ui/#iso:std:iso-iec:38500:ed-2:v1:en, checked on 4/7/2016.

ISO/IEC: ISO/IEC TR 38502:2014, Information technology — Governance of IT — Framework and model, 1st Ed. 1st Version. Available online at https://www.iso.org/obp/ui/#iso:std:iso-iec:tr:38502:ed-1:v1:en, checked on 4/7/2016.

ISO/IEC (2014): ISO/IEC TR 38502:2014, Information technology — Governance of IT — Framework and model, 1st Ed. 1st Version. Available online at https://www.iso.org/obp/ui/#iso:std:iso-iec:tr:38502:ed-1:v1:en.

Johanning, Volker (2014): IT-Strategie: Optimale Ausrichtung der IT an das Business in 7 Schritten. 1st ed. Place of publication not identified: Springer Science and Business Media.

Kagermann, Henning (2011): IT-driven business models. Global case studies in transformation. Hoboken, N.J: John Wiley & Sons.

Kagermeier, Andreas; Köller, Julia; Stors, Natalie (2015): Airbnb als Share Economy Herausforderung für Berlin und die Reaktionen der Hotelbranche. In Mit Auto, Brille, Fon und Drohne. Neues Reisen im 21. DOI: 10.1515/tw-2015-0203.

Kim, W. Chan; Mauborgne, Renée (2004): Blue ocean strategy. In Harvard Business Review’s Must-Reads on Strategy, p. 71.

Kling, Rob (1996): Computerization and controversy: value conflicts and social choices: Morgan Kaufmann.

Lauer, Thomas (2014): Change Management - Grundlagen und Erfolgsfaktoren. 2nd ed.: Springer.

Likert, Rensis (1932): A technique for the measurement of attitudes. In Archives of psychology.

Lubke, Gitta H.; Muthén, Bengt O. (2004): Applying multigroup confirmatory factor models for continuous outcomes to Likert scale data complicates meaningful group comparisons. In Structural Equation Modeling 11 (4), pp. 514–534.

Maryska, Milos; Doucek, Petr; Nedomova, Lea (2015): Corporate Informatics and Strategic Management. In Procedia Economics and Finance 26, pp. 651–656. DOI: 10.1016/S2212-5671(15)00806-0.

OECD Council (2005): Growth in Services. Available online at http://www.oecd.org/general/34749412.pdf, checked on 4/7/2016.

Österle, Hubert; Otto, Boris (2010): Konsortialforschung. Eine Methode für die Zusammenarbeit von Forschung und Praxis in der gestaltungsorientierten Wirtschaftsinformatikforschung. In Wirtschaftsinformatik: WI 52 (5), pp. 273–285.

Otremba, Stefan (2016): GRC-Management als interdisziplinäre Corporate Governance : Die Integration von Revision, Risiko- und Compliance-Management in Unternehmen. Wiesbaden: Springer Gabler. Available online at http://dx.doi.org/10.1007/978-3-658-15395-3.

Peffers, Ken; Tuunanen, Tuure; Rothenberger, Marcus A.;

Chatterjee, Samir (2007): A design science research methodology for information systems research. In Journal of management information systems 24 (3), pp. 45–77.

Perroud, Thierry; Inversini, Reto (2013): Enterprise Architecture Patterns. Practical Solutions for Recurring IT-Architecture Problems. Berlin, Heidelberg, s.l.: Springer Berlin Heidelberg. Available online at http://dx.doi.org/10.1007/978-3-642-37561-3.

Pescher, Julia (2010): Change Management: Taxonomie und Erfolgsauswirkungen: Springer.

Pot??ek Martin; Veselý, Arnošt; Nekola, Martin (2004): Understanding Governance: Theory, Measurement and Practice. Measurement of Governance. In CESES Papers (1). Available online at http://www.ceses.cuni.cz/CESES-20-version1-sesit04_05_potucek.pdf.

Snyder, Mark (2014): Achieving successful IT transformation: 11 lessons from the field. Available online at http://www.kpmg-institutes.com/content/dam/kpmg/advisory-institute/pdf/2012/achieving-it-trans-11-lessons.pdf, checked on 5/10/2016.

Sonnenberg, Christian; Vom Brocke, Jan (2012): Evaluations in the Science of the Artificial – Reconsidering the Build-Evaluate Pattern in Design Science Research. In

David Hutchison, Takeo Kanade, Josef Kittler, Jon M.

Kleinberg, Friedemann Mattern, John C. Mitchell et al. (Eds.): Design Science Research in Information Systems. Advances in Theory and Practice, vol. 7286. Berlin, Heidelberg: Springer Berlin Heidelberg (Lecture Notes in Computer Science), pp. 381–397.

Stephen P. Robbins; Mary Coulter: Management. 11. ed., global ed. Boston [u.a.]: Pearson.

Sven Ruoss (2015): Digital Switzerland 2015 (abstract). Hochschule für Wirtschaft Zürich HWZ.

Venkatraman, Nils; Henderson, John C.; Oldach, Scott (1993): Continuous strategic alignment: Exploiting information technology capabilities for competitive success. In European Management Journal 11 (2), pp. 139–149.

Webb, Phyl; Pollard, Carol; Ridley, Gail (2006): Attempting to define IT governance. Wisdom or folly? In : System Sciences, 2006. HICSS’06. Proceedings of the 39th Annual Hawaii International Conference on, vol. 8. IEEE, 194a?194a.

Weill, Peter; Ross, Jeanne W. (2004a): IT governance. How top performers manage IT decision rights for superior results. Boston: Harvard Business School Press.

Weill, Peter; Ross, Jeanne W. (2004b): IT governance: How top performers manage IT decision rights for superior results: Harvard Business Press.

Westerman, George; Bonnet, Didier; McAfee, Andrew (2014): Leading digital. Turning technology into business transformation. Boston, Mass.: Harvard Business Review Press. Available online at http://lib.myilibrary.com?id=800040.

Westerman, George; Calméjane, C.; Bonnet, D.; Ferraris, P.; McAfee, A. (2011): Digital Transformation. A roadmap for billion-dollar organizations. In MIT Center for Digital Business and Capgemini Consulting, pp. 1–68.

Wu, Shelly Ping-Ju; Straub, Detmar W.; Liang, Ting-Peng (2015): How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and IT managers. In Mis Quarterly 39 (2), pp. 497–518. Available online at http://aisel.aisnet.org/cgi/viewcontent.cgi?article=3242&context=misq, checked on 9/11/2016.

Wie steht es um die digitale Fitness Schweizer Unternehmen? Available online at http://www.inside-it.ch/articles/40679, checked on 2/7/2016.

Zachman, John A. (1987): A framework for information systems architecture. In IBM systems journal 26 (3), pp. 276–292.

Published

2018-11-29

How to Cite

Hitz, C., & Schwer, K. (2018). The role of IT governance in digital operating models. Journal of Eastern European and Central Asian Research (JEECAR), 5(2), 19. https://doi.org/10.15549/jeecar.v5i2.210