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MP121 Accounting Information Systems

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MP121 Accounting Information Systems

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MP121 Accounting Information Systems

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Course Code: MP121
University: Wentworth IInstitute Of Technology

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Country: United States

Question:

IT Governance is typically used to align overall business strategy with the IT strategy. What are some of the steps that an IT organization can take to ensure that they are adding value to the organization Does IT Governance have a role in the business value in IT.

Answer:

Business IT organization is used of Information Technology (IT) in order to achieve the business objectives. It provides value to the organization by improving the financial performance and achieving a competitive advantage (Fukuyama, 2017). The steps used to add value to the IT organization are:

The IT vendors from which the organization is using the IT services are researched properly to increase the pricing.
The organization negotiates with the vendors for enhanced pricing of their IT services and purchased in huge amount to increase the savings (Duffield, 2014).
The organization determines whether their business is running overtime or not. The coordination as well as organizational skills of the employees is determined to add value to the organization.
The organization should have good IT governance which increases the company’s operations and IT services (Tricker & Tricker, 2015).
Training is provided to the employees who have lack of knowledge on IT; therefore they are trained to handle of IT services and equipments. Regular appraisal is required among the staffs to increase the level of competency into the team (Van Grembergen & De Haes, 2017). It enables the training needs to improve quality as well as quantity of the work which is carried out.
The IT organization should optimize the purchase-to-pay as well as order-to-cash procedures to achieve the cost savings.
The organization should create a good IT culture into the workplace so that the workers are satisfied with their working environment.

Role of IT governance into the business value in IT
In the IT organization, the IT governance is such a framework which provides formal structure to the organization so that the business can achieve their goals and strategies. Following are the roles of the IT governance into the business value into the IT organization such as:

IT governance aligns with the business to support of evolution into the architecture of the enterprise in order to deliver consistent business values
They help to measure the growth of IT business organization and their respective successes (Fukuyama, 2017).
They establish of chain of responsibilities, authorities as well as interaction to provide with right decisions
The IT governance understands the strategies of the business along with alignment of the technology strategies with the business strategies
They provide of simplicity among the business strategies along with IT initiatives to link among the business objectives (Van Grembergen & De Haes, 2017).
They approve of the capital funds for the IT organization
IT governance focused on the information system along with performance as well as risk management (Duffield, 2014).
Assure that IT investment generate of business values and mitigate of the risks which are associated with the IT (Tricker & Tricker, 2015).
Implementing of organizational IT infrastructure with proper flow of information, IT applications along with IT infrastructure
The IT governance includes of management as well as leadership responsibilities for the portfolio management, project risks and changes (Van Grembergen & De Haes, 2017).

References
Fukuyama, F. (2017). State building: Governance and world order in the 21st century. Profile Books.
Duffield, M. (2014). Global governance and the new wars: The merging of development and security. Zed Books Ltd..
Tricker, R. B., & Tricker, R. I. (2015). Corporate governance: Principles, policies, and practices. Oxford University Press, USA.
Van Grembergen, W., & De Haes, S. (2017, January). Introduction to IT Governance and Its Mechanisms Minitrack. In Proceedings of the 50th Hawaii International Conference on System Sciences.

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