IT governance in the public sector: a conceptual model Tonelli, Adriano Olímpio, et al. "It governance in the public sector: a conceptual model." Information Systems Frontiers (2015): 1-18.

1. IT GOVERNANCE IN THE PUBLIC SECTOR:A CONCEPTUAL MODEL
TONELLI,ADRIANO OLÍMPIO, ET AL. "IT GOVERNANCE IN THE PUBLIC SECTOR:A CONCEPTUAL MODEL." INFORMATION
SYSTEMS FRONTIERS (2015): 1-18.
Prepared By; Riri Kusumarani
Ph.D Candidate at Global ITTP,
KAIST Spring 2017
Management Information System
Course Offered By ; Prof.Hangjung Zo
KAIST,2017

2. • IT Governance(ITG) can be defined as a set of practice consists of decision-making structures, processes and relational
mechanism which has significant effect in value delivery of IT .
• Organizations that successfully implemented ITG can benefit from a higher value from IT including increased performance such as
profitability.
• ITG in public sectors is getting more attention because Government is now moving towards Govt 2.0 or even Govt 3.0 which
includes big usage of IT to provide better IT-enabled services to the public.
• Most studies on the effect of ITG on performance focus on private sectors, however public sectors are different.
• Public sectors are not profit-oriented, and transparency is considered as central issue.Whilst private sectors are mostly profit and
financial return focus.
BACKGROUND

3. Research Gaps
• Previous studies about ITG in public sectors:
• CSF for effective ITG
• Practices implemented to provide effective ITG
• Moderating role of ITG on the relationship
between IT spending and cost-efficiency.
“What about the impacts of ITG on IT performance and also
organizational performance?”
• Focus only on single ITG practices associated with one
or more ITG mechanisms and overall effectiveness of
ITG
• Previous studies on Public Sectors are summarized in
Table 1 in which the results were conflicting one each
other.
D-M
Structures
Processes
Relational
Mechanism
IT
Performance
Organizational
Performance

4. D-M
Structure
ITG
Process
Relational
Mechanism
IT
PerformanceITM
Process
A group / individuals who has the authority and responsibilities in IT-related activities
No (+) effects between D-M Structures with ITG Effectiveness probably because of the low maturity of organizations in
making IT decisions.
A mature decision making structures : properly established & well developed
ITG Process is the systems used in an organization regarding how to make decision, how to monitor & evaluate IT concerns in line with
business priorities.
Performance measurement system is positively contributes to strategic alignment but not to business success.
A mature ITG process once documented, widely communicated and assessed can contribute to better IT
performance.
ITM Process focus on implementation of the directions set by governance.
Organizations’ capability to provide active participation of and collaborative relationships among the board, IT management and line managers.
Top management involvement with IT and enterprise communication systems has a positive correlation with effective IT governance in both private and public enterprises.
There’s also positive correlation between the effectiveness of IT governance with a set of relational mechanisms.
Once properly established, relational mechanisms can promote synergy and mutual understanding between actors involved so IT can be directed designed,
implemented and used in line with organizational priorities.
Tonelli, 2015

5. D-M
Structure
ITG
Process
Relational
Mechanism
IT
Performance
Organizational
PerformanceITM
Process
Conceptual Model as proposed by Tonelli, 2015
Relational Mechanisms are easier to implement compared to other 3 components.
Therefore, to create a context in which ITG is able to contribute result for
organization, easier implementation as the initial start can be an effective way.
Ability to direct organizational IT resources toward 4(four) evaluation criteria which are :
- Alignment between IT & Institutional demands of organization
- Proper IT actions in terms of cost and benefit
- Optimized IT resource application
- Flexibility to adapt to changes
There are conflicting opinions about IT productivity and business
outcomes
(-) IT investment growth is not followed by good returns
(+) Organizational performance showed an increase
These results were all related with private sectors.

6. • For each construct, measurement items were developed and operationalized as multi-item scales.
• To assess maturity levels, Control of Objectives for Information and relatedTechnology (COBIT ) levels of maturity were used
ranging from Level 0 to 5.
Data
• 408 Brazilian public organizations which hired training services in IT governance between June 2012 and July 2012. Out of these
number, a sample containing 311 cases were obtained.
• Questionnaire using a 6-point scale was sent to the CIOs and BoD of the organizations (Table 6)
METHODOLOGY

7. IT
Performance
Organizational
Performance
ITM
Process
IT Architecture
IT Audit
IT Security & Risk
IT Governance & Strategy
IT Projects & Portfolios
DM
Structures
ITG
Process
Relational
mechanism
Org.Strategic Planning
IT Strategic Planning
Enterprise gov.framework
IT Gov.Framework
Performance Measurement System
IT Outsourcing Mgt
IT Proj. Mgt
IT budget Control
IT Service Portfolio Mgt
IT Operational Risk Mgt
IT S.L.A
CIO Involvement
Top Mgt Involvement
Job Rotation
Org.Communication System
Cross-training
Operational Efficiency
Innovations
Transparency
Service Improvement
IT Initiatives alignment
cost-benefit of IT Initiatives
Flexibility
Resource Optimization

8. RESULT & DISCUSSION
D-M
Structure
ITG
Process
Relational
Mechanism
IT
Performance
Organizational
PerformanceITM
Process
 There’s a need for good coordination between IT staff and other members of public
organization
 Relational mechanism maybe the first step to develop adequate IT Governance

9. Bureaucracy and IT Governance
• At high level maturity, bureaucratic rationalization can be achieved based on discipline and predictability of results.
• However, applying IT resources effectively and innovatively require creativity and trial.
• Public organizations are facing challenges to adopt innovations that are caused by IT.
Bureaucracy and Public Sector
• In Public sector, bureaucracy can led to a tendency of a centralized information which can result in reduced transparency.
• It can also lead to a lack of attention to the way the work actually is performed and the excessive focus on norms.
Bureaucracy and IT Governance
• In ITG, relationship between IT and other units can become complicated when technology committees proliferate with several formal rules in such a
way that the result show that an addition in formal committees are not significant enough to bring positive IT performance.
• Bureaucratization can neutralize the positive effects brought by ITG.

10. IMPLICATIONS & LIMITATIONS
Implication
• This study consider a broader conceptual approach for ITG and extend it with maturity concept on each construct.
Comments
• Can the result be generalized into other countries public sectors?
• Why this paper doesn’t consider organizational structure or organizational size ?
• This paper will probably get many citations in the future
• The conceptual model does not have overaching theory to support, mostly using common sense knowledge
• We predict that in the early research, writers didn’t intend to include the hypothesis 5a,5b,5c.