There are five focus areas for IT governance identified by the IT Governance Institute (ITGI, 2003): Strategic Alignment (SA), Resource Management (RM), Performance Measurement (PM), Value Delivery (VD) and Risk Management (RK). The five focus areas of IT governance are based on the stakeholders’ values. The first three (strategic alignment, resource management and performance measurement) are considered as drivers and the other two (value delivery and risk management) are outcomes. Most of the IT governance models, frameworks, standards and structures consider these five focus areas during IT implementation (ITGI, 2003) and this is the reason for this research to choose this practical approach of IT governance in reviewing and categorizing the literature. The ITGI (2003) defines each criterion as follows:
Ensures a linkage between business and IT plans, defines, maintains and validates IT value propositions and aligns IT and enterprise operations. The main concern relates to the linkage of enterprise business and IT plans with
Deals with the execution of the value propositions through the delivery cycle, makes certain that IT delivers the promised benefits vs. the strategy. The main concern is optimizing costs and proving the intrinsic value of IT throughout the delivery cycle.
Ensures risk awareness by senior officers in the organization, a clear transparency and understanding of the organization’s desire for significant risk and compliance requirements and embedding of risk management responsibilities in the organization. The main concern is to do with embedding accountability to mitigate significant risks.
Ensures optimal investment and proper management of critical IT resources: applications, information, infrastructure and people. The main concern regarding optimizing knowledge and infrastructure. The IT resource management area overlays all the other four areas.
Tracks and monitors implementation of strategies and projects. This also applies to the use of resources, performance of processes and delivery of services. An example is the use of a Balanced Score Card (BSC), which translates strategies into action for achieving goals that are measurable beyond conventional accounting. Key issues relate to setting and monitoring strategies and services.
References:
Aasi, Parisa & Rusu, Lazar & Vieru, Dragos. (2017). The Role of Culture in IT Governance Five Focus Areas: A Literature Review. International Journal of IT/Business Alignment and Governance. 8. 42-61. 10.4018/IJITBAG.2017070103.