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Digital governance: shared understanding of IT, knowledge sharing between IT and business executives, and a shared language for describing IT opportunities and threatsFirm strategic orientation: the more aggressive the business strategy, the more IT is explicitly viewed as a strategic toolMarket turbulence/dynamism: alignment more challenging with faster time to market speed, greater rivalry, possibility of disruptive technology9
Exam 3Size of firm: smaller and larger tended to be more aligned (smaller due to level of connectedness, larger due to level of resources committed to strategy development and execution) Knowledge challenge: alignment is not possible if the business strategy is unknown or in processDynamism challenge: alignment is not desirable as an end in itself since the business must always changeGovernance challenge: IT can disrupt conventional business models, and therefore the ITleaders should challenge business leaders and not just follow them Why would a firm choose one of the three approaches to digital governance over the others?Internal IT organizational models: centralized, decentralized, federalist (hybrid) Centralized IT organization: (not the most agile)oIT CIO decides on actions- central controloCould be biased – one perspective oDecisions made by upper levels in the organizationDecentralized IT organization: (not enterprise wide agile)oMany CIOs – many solutions/perspectivesoMultiple perspectives- need of organizational learningoMany different data repositories – could lead to data redundancyoMight get contradictory answers to problems Federalist (hybrid) IT organization: oRecognition that central and decentral have drawbacksoCreated a medium with some centralized governance and have extensive unit representation10
Exam 3oHave an executive function (CIO for strategic decisions) as well as advisory comities for guidanceoIf there is a lot diversity there might be many moving parts at the same timeNot just a centralized CIO responsible for driving centralization and standardization (e.g.,improving metadata definitions in data dictionaries, driving business process ownership efforts)But also another layer of IT professionals and business-oriented coordinators that facilitatebusiness and IT collaboration, business-to-business collaboration, and collaboration withexternal parties…all under one IT governance decision-making and accountability umbrella. What are IT sourcing options and why choose one approach over another?IT sourcing optionsPhilips: outsourcingbecause it is less expensive for them and outsources IT tasksaddressed more general IT which was time consuming for the other groups. Partneringif needed to employ and maintain sophisticated technology and theywere looking for flexible partners who could address problems and IT needs on shortnotice.