“Four stages of IT governance” in the enterprise informatization life cycle

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There are many famous enterprise life cycle theories in strategic management, which describe the whole process of an enterprise from birth to maturity and decline, and propose core strategic ideas for each stage. This theory can also be applied to enterprise informatization. Enterprise informatization also has its own life cycle, and it also needs to go through such links as demand proposal, scheme selection determination, development and implementation, operation and maintenance, and service. Each stage of this process will involve IT informatization governance issues.

1. Demand project initiation stage

There are generally two kinds of IT requirements click in group enterprises: one is the requirements in the annual IT planning, and the other is the temporary and unplanned requirements. Generally, group enterprises will make IT plans for the second year in the fourth quarter of the first year, collect information needs from various branches and departments, and agree to review them. The feasible ones will be included in the second year’s annual plan, and have a unified budget, which is the main part of IT needs. The other part of the demand is beyond the annual plan, that is, it is proposed and approved temporarily. However, no matter where the process is, there should be a review and approval process for the rationality of requirements, which is the governance process of IT requirements.

2. Scheme selection stage

At present, in the process of informatization, the software, hardware or consulting activities are generally not completed by Party A itself, but with the help of external forces, which involves the selection of solutions and suppliers. Who can participate in supplier selection, what are the selection criteria, and what are the decision-making processes. These are the contents of scheme selection governance.

3. Project implementation stage

Project implementation is a complex and risky process. There are a few, a dozen, dozens, and hundreds of large and small projects implemented every year in a group. How to control these projects, to what extent, what kind of decisions, and who will make the final decision are all very confusing problems. If the project is not handled well, it will be dangerous, bring huge economic losses, and cause serious consequences. These problems are to be solved in the project governance phase.

4. Operation and maintenance and service stage

The operation, maintenance and service stage plays an important role in informatization, and it is crucial whether a successful system can provide appropriate services for users. However, the most critical change phase in the operation and maintenance process will affect the normal operation of the business and have a huge impact on the enterprise if it is not handled properly. In this process, who decides to change, how the change approval process is, and who finally decides to make changes and publish them, these are issues that should be focused on in the operation and maintenance and service phase governance.

The above are the four stages of IT governance, which are indispensable. Only by ensuring that each stage is normal, can possible risks be reduced and enterprise projects be truly implemented.

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