IT governance covers the efficient and effective use of IT in ensuring that an organization is able to meet its goals (Weill & Ross, 2004). That may sound simple, but it is actually rather complex in that a number of issues must come into play in order to allow that to take place. Governing the IT department and the data it collects, processes, and provides to the rest of the company is no easy task, and there are many aspects -- all of which are potential problems if they are not handled correctly (Weill & Ross, 2004). When data is collected, it has to be the correct data at the right time, and it then has to quickly reach the right person for processing (Weill & Ross, 2004). An organization that is not getting the right data or that does not know what to do with the data it is getting can easily find itself with a serious problem when it comes to relating to customers and providing them with what they want and need. Proper IT governance can help avoid that possibility.
Additionally, companies very often rely on their IT department to have the correct information they need so they can provide that information to other employees or to customers (Weill & Ross, 2004). If the IT department is not being handled and managed correctly, that information is not going to be available. That can result in a loss of customer confidence, which can quickly affect the bottom line of a business. In order for the IT department to help the company meet its goals quickly and efficiently, the management of it has to be something on which the company focuses (Weill & Ross, 2004). Taking IT governance seriously can go a very long way toward the success of a company and the reaching of corporate goals that are important to everyone involved in their planning and implementation.
Weill, P. & Ross, J.W. (2004). IT governance: How top performers manage IT decision rights for superior results. Boston, MA: Harvard Business School Press.