CITO juggling ICT on one foot, on a wall

Information & Communication Technology

Introduction

Information and Communication Technology (ICT) is all pervasive in our lives. Effectively used ICT delivers inconceivable benefits. With inconceivable benefits, some use of ICT goes wrong often at great cost.

Even after careful selection and design of a solution, benefits and problems emerge during implementation or in the operation. Disengaging from an ICT system can be harder than implementing the replacement. There are numerous interdependencies and a rapidly changing global environment is a given.

Australian Standard for Corporate Governance of ICT

Ramin Communication's principal consultant, Marghanita da Cruz, was instrumental in the drafting and publishing of an Australian Standard to assist organisation to improve their governance of ICT.

The Australian Standard for Corporate Governance of ICT was published in January 2005 and adopted as ISO38500 Corporate Governance of Information Technology in 2008.

The standard provides a vocabulary, principles and a model for effectively governing ICT in an organisation. The six principles and model provide a way to deal with the diverse sources of risk and uncertainty ICT introduces.

Ecologically Sustainable ICT

Energy Use and Materials use and E-Waste are financial and compliance imperatives, which need to be considered in the governance of ICT.

Risk

In Understanding and Managing Risk Attitude*, Hilson and Murray-Webster elaborate on the role of Heuristics and Emotional Intelligence in risk assessment and management. They classify Individuals as Risk averse, risk neutral or risk tolerant and discuss how this influences individual and groups behavior towards Risk identification and management. To some, inclusion in the group is important. Risk Takers may unrealistically emphasize benefits and underplay or not look for threats. Achievement focussed individuals may seek lesser but less threatening outcomes. Individuals' attitudes to Risk and their role in the group, also affect the group's attitude to Risk.

Rice, O'connor, Pierantozzi have (3) identified four broad areas of ICT project uncertainty: Technical, Market, Organisational and Resource Uncertainty.

In undertaking ICT projects and in the ongoing use of ICT by an organisation, its Directors need to be mindful of their obligations. A prudent approach requires a thorough Risk analysis of the impact the project will have on the organisation, the Risks and uncertainty inherrent in the technology and the new business processes and relationships it will create. This approach needs to continue as the project progresses circumstances may change and new information may come to light. Directors need to monitor the project and ensure it adapts to its changing environment or if it appears unlikely to succeed then its termination should be timely.

The effectiveness of Technologies in operation also needs to be monitored and new technologies may need to be considered. Directors need to ensure their management are aware of their obligation to provide the necessary information in a timely manner, to support active monitoring and evaluation and are also able to respond to new directions in a timely and cost effective manner.

References

1 Links to Audit Reports, Court Cases and Media Coverage available at www.acs.org.au/governance/#reading
2 Corporate Collapse - Accounting, Regulatory and Ethical Failure - sheds light on corporate collapse from the 1960s to the 1990s and beyond including Bond, HIH and One.Tel.
3 Implementing a plan to Counter Project Uncertainty - Rice Oconnor Pierantozzi - MIT Sloane Management Review Winter 2008

Contact for More Information

Ramin Communications provides ICT Management Services including Guidance on Governance of ICT Projects, Staff Training and Mentoring on Governance in projects and the operation of ICT, Planning and Business Analysis. Our Principal Consultant, Marghanita da Cruz, has over 30 years of experience in implementing and managing ICT in Government, Education, Corporates, Small Business and the community.

Contact: Marghanita da Cruz
E-mail: marghanita@ramin.com.au
Telephone: (+61) 0414 869 202
Post: PO Box 341 Annandale NSW Australia 2038
Website: ramin.com.au

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