Development Of Information Systems Capabilities Within An Organization Essay

Development Of Information Systems Capabilities Within An Organization Essay

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1. INTRODUCTION

Development of information systems capabilities within in the firm with supplied competitive value creates better financial performance and as well as critical and acceptable service (Hushmandi et al, 2012). Shelly et al., (2006) defined Information System as a system that combines IT, people and data to support business requirements to facilitate planning, controlling coordination and decision making within an organization. Governance is defined as the way in which something is governed and the function of governing, steering and coordinating participants based on existing regulation systems (Green et al, 2010). IT Governance defines the locus of enterprise decision-making authority for core IT activities with a goal to ensure that IT investments generate business value (Sambamurthy and Zmud, 2000). Sharp (2011) has defined how business process (defined simply as a large viable use case approach) is different from capability (model which is hierarchical description of what the business does), yet capability is indistinguishable from what they call business process.
Shleiler and Vishney (1997) define corporate governance as ways in which financial suppliers of the organization assure themselves of getting returns on their investments. According to Grant et al (2010), IT governance has a significance impact on corporate governance and as such, IT governance approaches must also be represented to satisfy corporate governance agenda to ensure clarity of, and accountability for the desired outcomes; to enable understanding of the full scope of effort; breaks down the ‘silos’ and ‘connects the dots’; manages the full economic life cycle; sense and responds to changes and deviations (ibid., 2010)
Firms are seeking to d...


... middle of paper ...


...ving the business objectives. To this point, there is a need to conceptualize a model that would show how IS capability could be realized.
The conceptual framework given in this paper suggests that the way to add business value through IT governance, IT management and corporate governance is to have integration of all elements and the aspects of capabilities to execute strategy and provide future growth. The integrating elements including, corporate vision/vision statement, company overview, company documents, strategic alignment, IT leadership, business, technology resources and human resources should be considered as key business functions to derive and deliver business value from investments in information systems and technologies. Deriving business value and delivering business service should be looked at from both IT governance and IT management perspectives.

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