Monday, September 30, 2019

Information technology governance framework for improving organisational performance

CITATION
Ako-Nai, A., & Singh, A. (2019). Information technology governance framework for improving organisational performance. South African Journal of Information Management21(1), e1–e11.

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ABSTRACT
Background: Following the corporate failures of the 1990s, factors identified as evidence for these
failures extended beyond just weak or ineffective corporate governance models, codes and
legislation. Poor management and oversight of information technology (IT) systems were also
identified as sources of failure as a result of organisations’ significant utilisation and reliance on IT.
For more control and regulations, existing corporate governance codes of practice and the
development thereof were reviewed and reformed. Information technology governance reforms
were then incorporated into corporate governance codes, and IT governance established as a
board-level responsibility. Over the years, studies into board-level IT governance have been limited,
and thus the nature of board-level IT governance and its constitutional aspects are not fully known.
Objectives: The aim of this study was to identify and assess aspects of IT governance implemented
by the boards of companies listed on the Johannesburg Stock Exchange in South Africa.
Method: In-depth, semi-structured interviews were conducted. Interview data was
thematically analysed and key themes identified.
Results: Boards have been effective in terms of IT investments and budgeting, which were
identified as key factors in effecting IT oversight. Boards have delegated most aspects of their
IT governance oversight to board-level risk and audit committees, thus limiting the level and
depth of interrogation of IT oversight by the board. The oversight of board IT governance is
weak in outsourced IT arrangements.
Conclusion: The implementation of board-level IT governance goes beyond prescribed IT
governance principles within corporate governance codes. In effecting their IT governance,
boards consider IT projects that contribute to organisational sustainability and those that
positively add value to stakeholders, such as employees and consumers.


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