Corporate governance encompasses the processes and oversight by which organizations are structured, current actions are measured and future strategy is guided. Daily technology use demands management govern information technology (IT), especially in the utility industry where IT supports most critical business functions and a vital community resource is provided.
IT governance relates to the structures and processes for maintaining oversight, transparency and control over IT activities. Integral to strategic planning and enterprise governance, IT governance keeps a pulse on account stakeholder and customer interests as well as staff needs and processes. Implementing a formal IT governance framework can produce measurable results toward achieving enterprise-wide strategies and goals.
Challenges and benefits
Utilities that have not established effective IT governance are more likely to deal with issues. Discord between IT initiatives and organizational strategy prevents an entity from running at peak efficiency for the lowest cost. Strategically lacking, unsound IT governance hinders effective succession planning and IT performance. It also leads to higher than expected ownership costs and mediocre service or unavailability of operational support systems.
Top benefits from implementing IT governance include better collaboration and insightful decision making, improved data sharing and data security, enhanced project management, increased value throughout information life cycle, reduced costs and more effective risk management.
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