News
ITGI: 60% of Organisations Get Significant Value From IT Activities
May 2008 by IT Governance Institute - ITGI
A new worldwide survey of 749 CEO/CIO-level executives commissioned by the non-profit, independent IT Governance Institute (ITGI) has revealed that 60 per cent of the organisations surveyed said they are convinced that the organisation is getting a lot of value out of IT activities. Some of the benefits referenced include delivering better customer relations and risk management at a lower cost or even creating higher product leadership. Innovative companies came out as five times more likely to continually optimise processes as they recognise IT as fundamental to their business and are using it as a competitive weapon. Translated this means that conservative companies are being held back by their attitude towards IT.
Speaking about the results of this research, the current International President of ITGI, Lynn Lawton, CISA, FCA, FIIA, PIIA, FBCS CITP, said “What stood out for me was the 20 per cent of respondents who do not determine their IT resource requirements based on business priorities! So what do they base them on? Also, the fact that only 54% of respondents have implemented, or are implementing now, performance measurement for IT. Improved IT governance goes hand in hand with getting better value from IT. Companies need to determine if they are getting value from what they have in their portfolio and therefore identify what they can do without. Or even be better off without. To support this, ITGI has developed a governance framework for IT-enabled investments, Val IT, to help all those with an interest in value delivery from IT.”
The primary goal of VAL IT is to enable organisations to secure optimal value at an affordable cost with an acceptable level of risk from investments in business change. This can be achieved through processes and management practices in three domains :
1. Value Governance : Setting direction and criteria to obtain optimal value from the portfolio of IT-enabled investments
2. Portfolio Management: Selecting, managing and monitoring the portfolio of IT-enabled investments to deliver optimal value
3. Investment Management: Ensuring that individual IT-enabled investments deliver optimal value
ITGI commissioned the global survey of 749 CEO-/CIO-level executives in 23 countries to determine executives’ IT governance priorities and IT-related problems their organisations have faced.
Survey Methodology
The ITGI Global Status Report is based on the findings of a worldwide survey conducted by PricewaterhouseCoopers (PwC) in 23 countries from July 2007 until October 2007. Interviews were conducted in the native language of the interviewee by telephone or mail. Researchers contacted CIOs and CEOs from contact databases of PwC and ITGI. The total number of interviews conducted was 749, of which 652 were from a random sample of organizations. The total results reported are at the 95% confidence level with a margin of error of +/ 4%.
About the IT Governance Institute
The IT Governance Institute® (ITGITM) (www.itgi.org) is a nonprofit, independent research entity that provides guidance for the global business community on issues related to the governance of IT assets. ITGI was established by the nonprofit membership association ISACA in 1998 to help ensure that IT delivers value and its risks are mitigated through alignment with enterprise objectives, IT resources are properly allocated, and IT performance is measured. ITGI developed Control Objectives for Information and related Technology (COBIT®) and Val ITTM, and offers original research and case studies to help enterprise leaders and boards of directors fulfill their IT governance responsibilities and help IT professionals deliver value-adding services.
