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07:46 16th June 2011
To implement a successful governance process chief information officers (CIOs) require both leadership and execution, according to Gartner.
The research firm said great IT leaders understand process, and they are aware that running governance programs involve process, discipline and creativity.
"Good governance is about control while great governance is about guidance and competitive advantage," Tina Nunno, vice president distinguished analyst at Gartner, said in a press release.
She went on to say that one of the key functions of governance is to provide controls that prevent "chaotic or reckless behavior" on the part of the company and its employees.
"Organizations with good IT governance enjoy benefits such as increased business value of IT-related assets. Strongly governed organizations receive 20 percent higher return on assets," she said.
But she also said controls alone do not guarantee competitive advantage, particularly if they stifle the ability to innovate.
"CIOs with great governance create competitive advantage by embracing emerging technologies, innovation and, most important, the concept of calculated risk," said Ms Nunno.
Posted by Derek Oldman
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