Chapter 9: The Connected Enterprise: Business Partnering and Protecting
Corporate and IT Governance
Corporate Governance: means that the leadership and management of a business are directly
accountable to its owners for proper operation and financial control of the organization.
IT Governance: distribution of it decision making rights and responsibilities among enterprise
stakeholders and the procedures and mechanism for making and monitoring strategic decisions
1-how organization will set goals, objectives and priorities for it
2-how it will integrate it with business strategies and goals
3- Which organizational members will make decisions and be responsible
Chief Information Officer (CIO)
Leads Organization IT Govern. Enforces IT Rules and Regulations. Understands both business and tech.
Communicates IT goals with stakeholders.
Creating values via IT Govern
IT Govern reduces or eliminates costs throughout its value chain. By developing IT strategies, businesses
are able to not only reduce costs but also do these things faster, smarter, better, more efficient. (global
reach through IT). Outsourcing of a process to another location or vendor that can perform the process
more efficiently and effectively is called business process outsourcing (BPO).
a) Provides worldwide access to business resources
b) IT globalization indicates that “the world is flat, borderless, cyber-connected”
c) The borderless context of IT indicates that e – commerce based on business are able to attack
customers across the globe.
Partnerships can span the globe and enable companies to go globe through the almost worldwide
usability of credit cards and their associated payment systems.
Global Sourcing: describe how businesses use partners to perform all kinds of activities including IT
functions and services in order to reduce costs, gain access to new skills and diver expertise, and focus
on value adding activities. 4 different sourcing choices: in-sourcing, onshoring, nearshoring, offshoring.
Insourcing : we do it ourselves (bmo). Bring various services or functions back in house.
On shoring: we outsource part of it to our business partner within the country.
Near shoring: outsource to business partner in a nearby country. (same geographic area)
Off shoring: outsource to business partner in a distant country
Outsourcing : IT Globalization provides opportunities to business entities to seek for a cheaper solutions
for various business problems. Ex Nokia, cisco, ibm. Outsourcing Options (global decision making)
Multinational companies (MNCs) engage in global business but are identified most strongly with a
home country. Transnational Corporations (TNCs) go beyond this model to a more borderless view of
Global Information system (GIS). It globalization means a global collection of business values provided
by the global IT resources. Global info is a system of organized collection of:
- Information tech, People, business processes
- Data (information ) exchange across cultural environments. Note: it global projects (off shoring) fail because of the lack of understanding different cultural