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 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.
Information becomes more and more important in the Information Technology (IT). Globalisation leads to a growing exchange of information within and between organisation (their employees, customers and suppliers) and an increasing use of networks. Moreover, activities of many companies nowadays rely on IT. Much of the value of a business is concentrated in the value of its information. Information is the basis of competitive advantage. And in the not-for-profit sector, with increased public awareness of identity theft and the power of information, it is also the area of an organisation’s operations that most needs control. Without information, neither businesses nor the not-for-profit sector could function. Valuing and protecting information are crucial tasks for the modern organisation.
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