Transforming

Enterprise IT
Speaker Name/Title
Date

1
 IT Requires Executive Oversight

With good reason:

• An apparel manufacturing company’s difficulties in installing

supply chain software cost it an estimated US $200 million

• A publicly traded company admitted that a virtual collapse of its

financial reporting system reduced its market value by one-third
in a single day

• An operational meltdown after the merger of two transportation

companies was traced to the inability to coordinate their IT
systems

 2009 ISACA All Rights reserved. 2

Oversight Can Lead to Value Creation

IT can provide significant benefits, too:

• A major airline’s supply chain transformation improved the
forecast of demand, reduced procurement costs and increased
service levels while costs fell

• A technology products and services company saved US $12

billion over two years by linking up disparate pieces of its supply
chain, thereby reducing inventory levels

 2009 ISACA All Rights reserved. 3

 IT Governance Is the Key Issue
• Enterprises are sacrificing
money, productivity and
competitive advantage by
not
implementing effective IT
governance

• Executives need a better

way to:
– Direct IT for optimal
advantage
– Measure the value provided
by IT
– Manage IT-related risks

 2009 ISACA All Rights reserved. 4

 ®
COBIT is a Road Map to Good IT Governance

• Accepted globally as a set of tools that ensures IT is working

effectively
• Functions as an overarching framework
• Provides common language to communicate goals, objectives
and expected results to all stakeholders
• Based on, and integrates, industry standards and good
practices in:
– Strategic alignment of IT with business goals
– Value delivery of services and new projects
– Risk management
– Resource management
– Performance measurement

 2009 ISACA All Rights reserved. 5

Developed by the Leader in IT Governance

Control Objectives for Information and related Technology

Professional association with 86,000 constituents.

Worldwide leader in IT governance, control, security
and assurance.
Offers the CISA, CISM and CGEIT certifications.

 2009 ISACA All Rights reserved. 6

 ®
COBIT Business Benefits

COBIT® provides guidance for executive

management to govern IT within the
enterprise

• More effective tools for IT to support business goals

• More transparent and predictable full life-cycle IT costs

• More timely and reliable information from IT

• Higher quality IT services and more successful projects

• More effective management of IT-related risks

 2009 ISACA All Rights reserved. 7

Harmonising the Elements of IT Governance

gic t De Val
a te e n liv ue
r
St ignm er
y
Al
Per surem
Mea

nt
IT

me
form en

Man Risk
Governance

age
anc t
e

Resource
Management

 2009 ISACA All Rights reserved. 8

A Closer Look at

 2009 ISACA All Rights reserved. 9

 COBIT® Answers Key Business Questions

Is
Is my
my information
information technology
technology
organisation
organisation doing
doing the
the right
right things?
things?

Are
Are we
we doing
doing them
them the
the right
right way?
way?

Are
Are we
we getting
getting them
them done
done well?
well?

Are
Are we
we getting
getting the
the benefits?
benefits? **

* Based on the “Four Ares” as described by John Thorp in his book The Information Paradox,
written jointly with Fujitsu, first published in 1998 and revised in 2003

 2009 ISACA All Rights reserved. 10

 ®
The COBIT Framework

 2009 ISACA All Rights reserved. 11

 ®
COBIT Defines Processes, Goals and Metrics
Relationship
Amongst
Process,
Goals and
Metrics
(DS5)

 2009 ISACA All Rights reserved. 12

 Defined Responsibilities for Each Process

RACI Chart
A RACI chart identifies who is Responsible,

Functions
Accountable, Consulted and/or Informed.

Activities
A/
Link business goals to IT goals. C I
R
I C

Identify critical dependencies and current A/

C C R C C C C C C
performance. R

Build an IT strategic plan. A C C R I C C C C I C

Build IT tactical plans. C I A C C C C C R I

Analyse programme portfolios and manage

C I I A R R C R C C I
project and service portfolios.

 2009 ISACA All Rights reserved. 13

 ®
COBIT Products and Their Primary Audience

COBIT, Risk IT and

Implementing and
Val IT frameworks
Continually Improving
IT Governance
COBIT User Guide for
Service Managers

COBIT and
Application Controls

 2009 ISACA All Rights reserved. 14

 ®
COBIT Harmonises Other Standards

• COBIT is often used at the highest level of IT governance

• It harmonises practices and standards such as
ITIL, ISO 27001 and 27002, and PMBOK
– Improves their alignment
to business needs
– Covers full spectrum of
IT-related activities

27001/2

 2009 ISACA All Rights reserved. 15

 Used by Organisations Worldwide
‘We continue to recommend that enterprises use [COBIT]
to challenge their established IT governance procedures
and to improve the controls they have in place.’
—Gartner

also used by Allstate, Harley-Davidson,

the Bahrain Civil Service Bureau and many others
(for complete case studies visit www.isaca.org/cobitcasestudies)

 2009 ISACA All Rights reserved. 16

 Getting Started
Visit www.isaca.org/cobit to download the COBIT® framework

 2009 ISACA All Rights reserved. 17