The two main objectives of IT governance are: adding value to the business through information technologies and mitigating the risks associated with them. How does strategic alignment, value delivery, resource management, and performance measurement change when considering different global environments?
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1, In the prevailing environment, an organization’s success relies on the methodology and approach they use for addressing varied global backgrounds that affect business operations. The global environment in which an organization operates affects the decision-making abilities, such as the usage of resources. Various factors affect how an organization operates in different global environments, such as competition, socio-political influence, regulations, economic factors, and consumer patterns (Ebert et al., 2020). Organizations that operate in the global economy develop and deploy varied strategies. For instance, the organizations can adopt a global, regional or local strategy. A local strategy is where the organization’s operations are employed to fit its countries. An organization that operates in India and China will have different strategies to tailor to the situations in both countries. For multinational organizations, deploying a global strategy is a vital solution for handling and managing operations on a large scale. Organizations should focus on value delivery, resource management, strategic alignment of business strategy with objectives, and performance measurement when working in the global economy, which is possible with IT governance. Organizations that operate in the global environment are confronted with environmental changes. They should adjust the organizational structure for attaining a trans-national strategy and organize the IT function to encourage co-progression with the entire business. The organizations should also modify the IT governance operations to be compatible with the re-configuration modification to attain the transnational strategy, resulting in operational excellence (Chou & Liao, 2017). Adopting a feedback cycle will help in bolstering strategic operations. In organizations that function in different global environments, the developed organizational strategy emerges from the external environment and the modifications made to the internal contingency elements. It will result in changes made to the organizational structure for developing transnational strategy. The next step entails developing IT decision rights to be compatible with the transnational approach, which helps attain organizational agility and learning in the global environment.Organizations operating in different global environments must adopt transnational strategies, resulting in changes to strategic alignment, resource management, performance management, and value delivery. The use of IT helps bolster market share as organizations adopt different strategic positions when operating in different global environments. For instance, if an organization changes its strategic position from a ’differentiator’ to a ‘cost leader,’ it has to make decisions on new IT investments, budget plans, and project approvals (Ebert et al., 2020). In global environments, organizations use IT strategy to support the marketing strategy. Organizations must also allocate resources to different projects based on locally available resources when operating in other global markets. IT governance helps in the proper allocation of resources while adjusting project priorities.
2. Connecting IT and corporate structures and ensuring that both are part of a synchronized strategy and strive for the same goal of business success is not easy. In helping you act as an integral part of governance and deploy IT governance at its best level, its objectives will be successful. Also, the present platforms help the engineering managers oversee their engineering team’s performance The need to facilitate better Governance of Information Technology has led to the creation and adoption of specific frameworks, for example, related technology and information objectives.Strategic alignment with business focuses on connecting business strategies and information technology operation services. Information technology governance ensures the value of constant prepositions that align with enterprise operations. The value of delivery is a primary objective of information technology governance that follows the preposition across the software delivery. These are vital pillars of optimizing the values and showing how valuable the IT efforts are. Also, risk management focuses on optimizing investments and resources. Engineering executions find knowledge and understanding on optimizing team dynamics to improve software quality and delivery.Risk management firms are responsible for managing and accessing the risks. Also, specific departments and roles take accountability for security and procedures for mitigating risks. However, this approach requires transparent governance. Lastly, performance management is well-established governance that helps engineering managers measure the velocity and generate reports with actionable insights for their teams. IT governance is the process or series of processes that ensure technical teams manage risks and operate in alliance with the organization’s business objectives, thus providing value to stakeholders and generating a return on investment.