IT Governance in the Digital Era

Abstract

As companies progressively rely on mobile, social media, cloud and big data in their business, the very nature of IT function within an organisation changes from providing reliable and cost-effective IT support to actively searching new ways to leverage technology and create customer value. For scholars and practitioners alike, the question then arises as to which extent the well-established IT governance models still apply in the new digital context and, if they no longer do, what new models can be proposed to account for the changing demands placed on IT. Through an explorative case study, this paper provides insights on emerging IT governance models within a digital enterprise. Our findings seem to suggest that the role of IT has expanded beyond a robust infrastructure provider to the one a strategy and technology partner. In order to harness the full power of IT in this capacity, companies need to make their IT department more business-aware, incentivize lateral communication and cross-functional learning, and promote integration of previously disconnected functional units.

Keywords: Governance, Digital Transformation, Governance Structures, Governance Mechanisms

JEL Classification: M40