Information Technology Governance for Emerging Digital Technologies

RMIT School of Accounting, Information Systems, and Supply Chain

INTE2412 Assignment Submission Sheet – Sem 1 2021

Family Name, Personal Name(s) Zhang, Sirui

Student Number S3751340

Telephone Number 0474482831

E-mail Address [email protected]

Tutor Dr Jim McGovern

Course Coordinator Karlheinz Kautz

Assignment Title Assessment Task 2: IT Governance and Change Management Proposal

Date Due 07/05/2021

Date Submitted 07/05/2011

Submission Check (Tick)

Citations and reference list All necessary evidence has been referenced and all citations comply with the preferred style guide.

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Page margins, paragraph and line spacing Submission conforms to the formatting requirements set out in the course guide or the assignment submission specifications.

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Electronic submission Using appropriate file naming conventions set out in the course guide or the assignment submission specifications.

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Turnitin corrections If necessary, have made adjustments in response to Turnitin reports. ( )

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1. Introduction 3

2. Background to the case 3

3. Overview of COBIT 2019 and its application in designing governance system 5

3.1 Overview of COBIT 2019 5 3.2 Application in designing governance system 6

4. Change model for COBIT-based governance system implementation 7

5. Challenges involved 10

6. Conclusion 11

7. Reference list 12

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1. Introduction

This assessment aims to address shortfalls in IT governance in Queensland Government

through a change intervention based on the COBIT19 framework. More specifically, a

better governance framework would be initiated to improve the investment performance

of ICT projects in Queensland, given current issues and problems identified. This report

would first outline the background of the case, identifying the problem and the need to

improve IT investment benefits in Queensland Government. Following that, COBIT2019

would be over-viewed and its application to design an appropriate governance system to

address case issue would be analyzed. In the following, a change model to help

implement a COBIT2019-based governance system and how it would satisfy

Queensland’s desire for improved benefits management of ICT projects would be drawn.

Finally, a critical analysis of COBIT2019 challenges and problems overall and in this

case would be analyzed. A conclusion shall be drawn on the rationale of proposed change

management plans in the end.

2. Background to the case

There is a need to improve the realization of benefits from ICT investment in the

Queensland government given the following background facts.

Queensland government has implemented ICT dashboard in the year of 2013 to monitor

and communicate the progress and performance of ICT projects implemented under the

background of reported failure of ICT projects and financial challenges in public

administration (Queensland Audit Office, 2019, p. 4). The financial context is that the

Queensland Government plans to spend $2.6 billion on ICT projects over the next four

years and that estimated project costs currently underway and reported on the Queensland

ICT dashboard is $1.3 billion, but the real scenario is that ‘$5.4 billion is wasted in

Australia alone on projects that don’t deliver a benefit’(INTHEBLACK, 1 November

2016). More specifically, QAO (2019) uncovered the problems in the current ICT projects

governance: with regards to ICT dashboard information reliability, there are problems of

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completeness ( identified 32 projects, with a total planned expenditure of $161.4 million,

that were not on the dashboard, but met the QGCIO guidelines), relevance and accuracy

(60 of the 161 projects currently on the dashboard did not have enough explanatory notes

about key decisions and major changes occurring in project lifecycle); timeliness and

comparability (most departments publish their data based on QGCIO guidelines, with an

average time delay of 42 days).; concerning whole-of-government assurance processes,

the investment review process, as well as assurance review process, is driven by

problems; concerning departments monitoring and managing ICT programs and projects,

HRIS and MyDAS ( three iterations of the project spanned 3.5 years, costing around $14

million, as excluding ongoing support costs) are two programs mentioned not well

governed to assure timely decisions and to maintain high productivity throughout the ICT

project lifespan.

According to Victorian Auditor General's Office (VAGO) report (2018, p.37), among

1,479 reported projects, only 1/4 had a benefits realisation plan; and among the benefits

plan reviewed, only 1/3 set down the expected benefits and identified measures and

related targets. It is concluded by VAGO report (2018, p.7) that, “agencies involved in the

2015 audit were not able to assure Parliament and the Victorian community that their ICT

investments had resulted in sufficient public value to justify the significant expenditure of

taxpayers’ money”.

Thus, the fundamental problem is considerable weakness in ICT project benefits reporting

and the governance of economic value in the long term. In the Queensland government,

ICT projects reporting and governance are not well carried out in a regular and consistent

manner to meet the needs of stakeholders although short term reporting is improved to

some extent, and that deeper analysis about benefits management and value creation of IT

projects are absent. Given the current problems and weaknesses, it is crucial to improve

benefits realization from ICT investment in Queensland Government to justify taxpayers

money and to turn ICT investment into long term value for citizen in Queensland.

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Figure 1 (QAO, 2019, P.6)

3. Overview of COBIT 2019 and its application in designing

governance system

3.1 Overview of COBIT 2019

COBIT 2019 could help guide ICT projects implementation and governance, centred on

optimizing value and benefits of resources invested and minimizing risks in IT projects

(Yasin et al., 2020, p.2). According to Mulgund, Pahwa and Chaudhari (2019, p.352),

key principles for COBIT 2019 include stakeholder value provision, holistic approach,

dynamic governance system, governance distinct from management, tailored to enterprise

needs and end-end governance system. More specifically, stakeholder value provision

focus on key benefits brought to stakeholders in long term; holistic approach focus more

on the whole impact of ICT in a holistic manner; dynamic governance system enables

internal and external changes to be taken into consideration in a flexible manner;

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governance distinct from management allows directing and monitoring mechanisms to be

adopted over ICT governance whereas enabling ICT management and implementation

activities at the same time to better identify risks and areas for improvement; tailored to

enterprise needs focus on specific circumstances and businesses for enterprise in adopting

ICT whereas end-end governance system allows better interaction in an intime fashion

(Wilkin et al. 2016, p.7).

In COBIT 2019, it shall be reckoned that performance management is based on CMMI

Performance Management Scheme, where capability and maturity are measured on a

scale between 0 to 5 (De Haes, Van Grembergen & Huygh, 2020).

In COBIT 2019, nine design factors are to be taken into account, including enterprise

strategy, enterprise goals, risk profiles, IT-related issues, threat landscape, compliance

requirements, the role of IT, sourcing model of IT, IT implementation methods,

technology adoption strategy and enterprise size (De Haes, Van Grembergen & Huygh,

2020). Generally, in COBIT 2019, the governance system would follow workflow from

understanding the enterprise context and strategy, to determine the initial scope of

governance systems, refining the governance systems and concluding the government

system design (De Haes, Van Grembergen & Huygh, 2020).

3.2 Application in designing governance system

COBIT 2019 shall be used to design the appropriate governance system for the case.

Overall, COBIT 2019 would help design a governance system for ICT in Queensland

Government to maximize value creation and minimizing risks in line with above

mentioned six principles. For instance, stakeholder value (especially taxpayers money that

is previously disregarded would be focused on) would be considered in new governance

system; a holistic approach would be adopted to focus on long term value rather than

short term project finish; governance distinct from management would grant more power

to better govern potential risks and pitfalls in current ICT management system; dynamic

governance system could enable the changing ICT environment and government needs

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internally to be focused on in ICT adoption, implementation and governance to take a

mobile approach; tailored to enterprise needs would consider how ICT could help

Queensland department at all levels better enhance efficiency in delivering benefits to

citizens.

Besides that, using COBIT 2019, the performance could be better rated in 0-5 on the

dimension of capability and maturity, allowing government officials to identify if changes

and improvement are needed in a more simple and relevant manner in the short, medium

and long term, with the fundamental goal to enhance value and minimize risks.

Using COBIT-2019, the Queensland government’s strategy in adopting ICT projects to

allow long term value creation for citizens would be analyzed whereas the current issues

in ICT governance such as lacking report and governance of economic value in the long

term would be analyzed in detail. Then, the initial scope of governance systems would be

determined in line with the previously mentioned 6 principles and 9 design factors, which

shall demand participation from professional consulting companies, the Queensland

department at all levels, taxpayers and others. Finally, the COBIT-2019 based governance

system shall be refined and concluded in a strategic manner, based on the above 6

principles and design factors, assuring it would be simple, effective yet holistic to adopt.

4. Change model for COBIT-based governance system

implementation

To implement the COBIT 2019-based governance system to satisfy Queensland’s demand

to improve benefits management in ICT projects, the change model to be used would be

the ADKAR model. ADKAR model has long been used as a change management model

in businesses, governments and communities from the group up based on awareness,

desire, knowledge and ability (Balluck, Asturi & Brockman, 2020). More specifically, the

first step is to generate awareness for change by enabling individuals to understand what

change is, the necessity of change and the risk of not changing; the second step is to

kindle the desire for change through influencing individuals and enhancing their

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willingness to support change; the third step is to build employees with skills, knowledge,

tools and processes to change; and the final step is to translate knowledge into action via

practical application support of training, coaching and support (Balluck, Asturi &

Brockman, 2020).

To better implement COBIT 2019-based governance system, the Queensland government

could use the ADKAR model to implement the change. First of all, the Queensland

government must first communicate to all the employees in the 23 departments about

what is COBIT 2019-based governance system in governing ICT projects, as well as the

necessity to implement the government system given its urgency. According to

Cummings, Bridgman and Brown (2016, p.35), the initiating stage to successful change

management is shaping a climate for change by communicating the necessity and urgency

of change. More specifically, the heads of the departments shall be educated about what is

involved in the COBIT 2019-based governance system, how it shall implementing the

COBIT 2019-based governance system allow the government to better maximize return

on investment and to reduce governance risks on a positive front as well as how the

negative circumstances such as IT projects failures would occur if the current system is to

be adopted. This shall be done before the COBIT 2019-based governance system is to be

implemented. Then, it is highly necessary for the Queensland government to further

enhance employees desire to change through enhancing the motivators and reducing

possible barriers. According to Cummings, Bridgman and Brown (2016, p.36), change

projects could be prone to the risk of failures if the support from participants is not gained

and in cases, barriers are not well addressed with support. Queensland government shall

mention how this governance framework renewed could allow the ICT projects to be

better governed to maximize the value and benefits of expenditure from taxpayers.

Queensland government shall also mention how this governance framework would

facilitate them to better govern ICT projects on value maximization in a long term

perspective. On the other hand, the Queensland government shall also be open to

addressing any barriers from individuals concerning not changing and shall provide solid

proof to persuade them into change. It is also relevant for the Queensland government to

link the change efforts and outcomes with awards and punishments to better motivate staff

at all government department levels to engage in positive action to support the change.

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This stage remains critical as enhancing motivation and reducing barriers is core to

securing success in IT change. Then, departmental wide training and tests in terms of

skills, knowledge, tools and processes of the COBIT 2019-based governance system shall

be rolled out. According to Cummings, Bridgman and Brown (2016, p.37), training and

support are necessary both prior to and during the change process as the participants

would encounter problems that are beyond their skills and knowledge gap and may be

distressed, hindering the change results to a negative manner. In this process, it is

relevant to sort for training from IT consulting firms who have considerable expertise and

to arrange the training through both online and offline practical courses, take the available

time of the government staff into consideration in a holistic manner. Offering training of

skills and knowledge shall not only empower participants with crucial knowledge but

could also make them more prepared and confident prior to and during the change to the

renewed COBIT-2019 based governance system. Finally, department employees would

turn their knowledge into future change circumstances. This is also relevant as the

COBIT-2019 based governance system is dynamic and open in nature and would involve

a change of practices, considering the external environmental factors and internal

environmental factors. Constant coaching, training and support shall be offered by the

Queensland government to better anchor a culture of change given the dynamic nature of

the COBIT-2019 based governance system.

It shall be summed that the above change model and processes shall help the Queensland

government better move to the renewed COBIT-2019 based governance system. Through

enhancing awareness, participants would be created with the urgency of change; through

enhancing desire, participants would be motivated to dedicate efforts; through enhancing

knowledge, the competence for COBIT-2019 based governance system would be

established to help smooth change and through elevating ability, dynamic change incurred

in COBIT-2019 based governance system would be better assured given the anchored

culture of change.

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5. Challenges involved

It shall be noted that adopting renewed COBIT 2019-based governance system would

incur critical challenges. First of all, the problem lies in that the renewed system would be

highly contradictory to the current system and practices. According to Brown, Rose &

Gordon (2016, p.795), change management in ICT system implementation and

governance could be complex and could disrupt normal business if not well managed.

Thus, the abrupt change to the new governance system may lead to a high degree of

pressures for staff, having to keep track of the IT projects governance whereas having to

move it to a new system for management, especially for the short term. The abrupt change

to new governance system may also cause conflicts at the beginning stage as the staff

would be confused about ways to implement and govern IT projects given differed

principles between old and new system. The abrupt change would also lead to loss of

critical information and data with regards to ICT projects if not well planned as well.

Consequently, the above analysis indicates that the top challenge for change management

is the transition from the old governance system to a new governance system, with

requires smart planning in advance, in support of the stakeholders.

Besides, another problem lies in potential barriers and conflict of interests from

government staff, IT vendors and other stakeholders. According to Hechanova,

Caringal-Go and Magsaysay (2018, p,916), barriers to change has long been an issue

threatening the change process and could halt the change process if not well managed.

With a new governance system, employees may be opposed as a huge amount of change

is demanded. Besides, with the new governance system, IT vendors may also be opposed

given conflict of interest, which may further bring challenge to the implementation of the

new governance system.

Finally, it shall be reckoned that the change to the COBIT-2019 based governance system

may also be confronted by sudden changes internally and externally. Although this system

is dynamic in nature and would consider internal and external factors into consideration,

some changes and challenges such as unavailability of funding and others may be

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catastrophic (Rosenbaum, More & Steane 2018, p.287). All in all, the above analysis

indicate that change to COBIT-2019 based governance system is not without problems

and smart tactics shall be taken into account.

6. Conclusion

All in all, this essay argues that COBIT-2019 based governance system shall be

introduced to help maximize value on investment of ICT projects in the Queensland

government. Through exploring current issues, it is drawn that poor reporting and

governance on value outcomes is a problem in the current governance system. Then,

through exploring principles and design frameworks, it is indicated that COBIT-2019

based governance system could help address the current issue for the Queensland

government, especially with regards to benefits on investment in ICT projects. Based on

the ADKAR model, it is suggested that change shall focus on awareness, drive,

knowledge and ability. Finally, three critical challenges with the change to COBIT-2019

based governance system is outlined at the end, including the abrupt change to the new

system, barriers from stakeholders as well as sudden environmental change that is beyond

grip. Thus, the report all adds to the point that COBIT-2019 based governance system

shall be planned and changed in a smart manner to better address current weaknesses in

ICT governance for the Queensland government.

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7. Reference list

Balluck, J., Asturi, E., & Brockman, V. 2020.Use of the ADKAR® and CLARC ®

Change Models to Navigate Staffing Model Changes During the COVID-19

Pandemic. Nurse Leader, 18(6), pp.539–546.

https://doi.org/10.1016/j.mnl.2020.08.006

Brown, D., Rose, D., & Gordon, R. 2016. De-commoditizing change management: A

call for the re-positioning of change management on IT projects. Journal of

Organizational Change Management, 29(5), PP. 793–803.

https://doi.org/10.1108/JOCM-07-2015-0116

Cummings, S., Bridgman, T., & Brown, K. 2016. Unfreezing change as three steps:

Rethinking Kurt Lewin’s legacy for change management. Human Relations

(New York), 69(1), pp.33–60. https://doi.org/10.1177/0018726715577707

De Haes, S., Van Grembergen, W., Joshi, A. and Huygh, T., 2020. COBIT as a

Framework for Enterprise Governance of IT. In Enterprise governance of

information technology (pp. 125-162). Springer, Cham.

Hechanova, M., Caringal-Go, J., & Magsaysay, J. 2018. Implicit change leadership,

change management, and affective commitment to change: Comparing

academic institutions vs business enterprises. Leadership & Organization

Development Journal, 39(7), pp. 914–925.

https://doi.org/10.1108/LODJ-01-2018-0013

QAO, 2019. Monitoring and managing ICT projects. Pp. 1-128.

Mulgund, P., Pahwa, P. and Chaudhari, G., 2019. Strengthening IT Governance and

Controls Using COBIT: A Systematic Literature Review. International Journal

of Risk and Contingency Management (IJRCM), 8(4), pp.66-90.

Rosenbaum, D., More, E., & Steane, P. 2018 Planned organisational change

management: Forward to the past? An exploratory literature review. Journal of

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Organizational Change Management, 31(2), pp.286–303.

https://doi.org/10.1108/JOCM-06-2015-0089

VAGO. 2018. The Victorian Government ICT Dashboard. Victorian Government,

Australia.

Wilkin, C.L., Couchman, P.K., Sohal, A. and Zutshi, A., 2016. Exploring differences

between smaller and large organizations' corporate governance of information

technology. International Journal of Accounting Information Systems, 22,

pp.6-25.

Yasin, M., Akhmad Arman, A., Edward, I., & Shalannanda, W. 2020. Designing

Information Security Governance Recommendations and Roadmap Using

COBIT 2019 Framework and ISO 27001:2013 (Case Study Ditreskrimsus

Polda XYZ). 2020 14th International Conference on Telecommunication

Systems, Services, and Applications (TSSA, 1–5.

https://doi.org/10.1109/TSSA51342.2020.9310875

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