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IT Governance

IT governance ensures that an organization's IT investments support its business objectives, manage risks effectively, and deliver measurable value. For MBA students, understanding governance is essential — it is how organizations make decisions about technology, who makes those decisions, and how they are held accountable.

Topics in This Section

Topic What You'll Learn
Governance Frameworks COBIT, ITIL, and ISO/IEC 38500 — the major frameworks that organizations use to structure IT decision-making
C-Suite IT Roles The CIO, CISO, CTO, and CDO — what each role does, how they interact, and why they matter to business leaders
IT-Business Alignment How the CIO negotiates with lines of business, strategic alignment models, and the politics of IT priority-setting
IT Budgeting & Finance Total cost of ownership, CapEx vs. OpEx, chargeback models, and making the financial case for technology
IT Spending Economics Global IT spending trends, benchmarking, and how organizations allocate technology budgets
Platform Economics Network effects, multi-sided markets, and the economic principles that drive platform business models

Suggested Reading Order

These pages are self-contained, but if you're reading the full section, this sequence builds concepts progressively:

  1. Governance Frameworks — Establishes the foundational vocabulary (COBIT, ITIL, ISO 38500)
  2. C-Suite IT Roles — Who makes governance decisions and how they interact
  3. IT-Business Alignment — How IT strategy connects to business strategy
  4. IT Budgeting & Finance — The financial mechanics of IT investment decisions
  5. IT Spending Economics — Macro-level trends and benchmarking for IT budgets
  6. Platform Economics — Advanced topic: how platform business models reshape IT economics

Why Governance Matters

Every technology decision in an organization — from which cloud provider to use, to whether to build or buy a system, to how much to spend on cybersecurity — is ultimately a governance decision. Poor governance leads to wasted budgets, security breaches, failed projects, and misalignment between IT and business goals.

As a future business leader, you will participate in these decisions whether you lead the IT function or not. Understanding governance gives you the language and frameworks to contribute effectively.