What is the ultimate purpose of IT governance?

The ultimate purpose of IT governance is to encourage optimal use of IT within an organization. IT governance establishes a framework that aligns IT strategies with business goals, ensuring that IT investments deliver value and support the overall mission of the organization. By fostering optimal use of resources, processes, and technologies, IT governance enables organizations to leverage IT capabilities effectively to drive performance, innovation, and competitive advantage.

In addition to enhancing strategic alignment, effective IT governance increases accountability and promotes transparent decision-making regarding IT expenditures and initiatives. This holistic approach ensures that the organization not only utilizes its IT assets wisely but also manages risks and maintains compliance with relevant regulations and standards, ultimately supporting its objectives.

While reducing IT costs, decentralizing IT resources, or centralizing control can be aspects or outcomes of specific governance arrangements, they do not encapsulate the overarching goal of IT governance itself. The focus is primarily on maximizing value and ensuring that the IT strategy is cohesive with the broader organizational strategy.