Information Technology Governance - Governance, Risk, and Compliance Topic for Oracle Applications - page 80

Lapses in IT governance and subsequent IT failures can lead to significant losses at
otherwise successful companies. The following are just random selection of recent
IT failures, which have hit the headlines:
• Cedar Sinai (a hospital): Decommissions 70 million dollar application after
mandating its use by all Cedar practitioners, because physicians revolt
against the unwieldy system (Source: CIO.com, http://www.cio.com/
article/29736/Health_Care_IT_A_Big_Rollout_Bust )
• Green Giant (a frozen food processor): Trucks 40 railroad car loads of fresh
produce to land fill every day for a month due to failing to adequately
implement the SAP system (Source: The CGEIT Exam IT Governance
Foundations. Tunita Group and Professional Assurance LLC.)
• Marin County: Sued its ERP Implementor for 30 million dollars for the
deployment, which is still not working four years after it initially went live
(Source: ZD Net, http://www.zdnet.com/blog/projectfailures/marin-
county-sues-deloitte-alleges-fraud-on-sap-project/9774 )
• Lumber Liquidators : Attributes a weak third quarter to a complex
SAP implementation, saying the project imposed a significant drain on
worker productivity (Source: PC World, http://www.pcworld.com/
businesscenter/article/209886/erp_woes_blamed_for_lumber_
companys_bad_quarter.html )
ISACA , the Information Systems Audit and Control Association , (the professional
institute for IT governance), defines the governance of enterprise IT in the following
domains (Source Privacy Rights.org):
• Strategic Alignment
• Value Delivery
• Risk Management
• Resource Management
• Performance Management
ISACA has put together a new governance framework and supporting publications,
addressing the governance of IT-enabled business investments called Val IT that
addresses the strategic alignment and value delivery aspects.
The Val IT Framework is supported by publications and operational tools and
provides guidance to:
• Deine the relationship between IT and the business and those functions
in the organization with governance responsibilities
• Manage an organization's portfolio of IT-enabled business investments