answer the following questions – concise responses

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CASE 2: Improving Enterprise Governance of IT in a Major Airline – Steven De

Haes; Wim Van Grembergen

1. Discuss how KLM embarked on the journey towards improved enterprise

governance of IT. If you would be a business consultant, what approach

would you take to launch such an improvement program?

2. In the beginning of the text, Enterprise governance of IT is defined as an

integral part of enterprise governance addressing the definition and

implementation of the processes, structures and relational mechanisms in the

organization that enables both business and IT people to execute their

responsibilities in support of business/IT alignment and the creation of

business value.

Structures include organizational units and roles responsible for making IT

decisions and for enabling contacts between business and IT management

decision-making functions (e.g. IT steering committees). This can be seen as

a form of blueprint for how the governance framework will be structurally

organized.

processes refers to the formalization and institutionalization of strategic IT

decision making and IT monitoring procedures, to ensure that day to day

outcomes are consistent with policies and provide input back to decisions

(e.g. IT balanced scorecard).

relational mechanisms are ultimately about the active participation of, and

collaborative relationship among, the board, senior corporate executives, IT

management, and business management. They include mechanisms such as

announcements, advocates and educational efforts.

Revisit the case and identify the structures, processes and relational

mechanisms applied in this case. Make sure you can clearly explain each of

these practices and its role in the context of enterprise governance of IT.

3. Discuss the motivation and criteria behind the “staying on the surfboard

principle”. Explain how you think this framework could / should evolve over

time.

4. The case describes the portfolio management process which begins with

an identification off the business drivers. Explain why KLM developed a

specific approach for capturing business drivers. What could be a point of

critique in this process?

5. The journey towards better enterprise governance of IT has been, and

continues to be an enriching one for KLM, and many challenges have been

overcome. However, as with any journey, there are still more challenges

ahead which must also be overcome to ensure that the journey will be

continued in a positive way. What according to you are the important areas

that needs to be improved in the coming period?

6. Although all organizations, including KLM, face some unique challenges,

concerns around effective governance of IT, and the realization of real

business value from today’s significant and increasingly complex

investments in IT are a universal concern. Other organizations can certainly

benefit from the experiences and lessons learned by KLM in this area. After

reading the case, what according to you the factors that have been key to

KLM’s success to-date, and could as such be recommended to other

organizations with an interest in improving their governance of IT?

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