A study of using information technology governance as a tool for achieving business objectives: a case study.

Abstract

The objective of this research is to establish how Information Technology (IT) Governance supports business objectives in an organization. The relationship between IT Governance and organization business objectives continues to interest academics and practitioners (IT Governance Institute, 2003). Like governance generally, IT governance is about the decision rights and accountabilities that encourage desirable behavior in the use of IT. A major challenge of IT governance is resolving boundaries and scope between the organization and its business units. Investment in IT has in recent years become a strategic organizational choice, yet there exists little understanding of IT governance's contribution to business objectives (IT Governance Institute, 2003). A case study research approach was used to get an in-depth understanding of IT governance in a single organization with many business units. The organization that was selected for this purpose is RioZim Limited (formerly Rio Tinto Zimbabwe), a mining company situated in Zimbabwe. Using a field survey of business and IT executives, this study examined how IT governance is contributing towards business objectives. Data was collected from all business units on various IT issues and business objectives. The questions that were asked centered on IT governance practices based on responsibility and authority for IT decision making. Some IT governance issues explored in the study include stakeholder involvement in decision making on major IT domains. The research examined how IT Governance is supporting the business objectives. The results suggest that RioZim's IT governance does not adequately support business objectives. The study revealed that business objectives should drive IT governance. IT governance should be the responsibility of executives and all business units. The results of the study wi II add to the literature in demonstrating the importance of IT governance in supporting business objectives. It provides an assessment tool to business executives for evaluating their IT governance and it also provides guidelines for developing effective IT governance that supports business objectives.