COBIT - Control Objectives for Information and Related Technology

The Control Objectives for Information and related Technology (COBIT) is a good framework strategy to help an organization maintain standards and develop a system of IT governance. COBIT is a common methodology used by many companies in order to develop a systematic means to meet compliance laws.

Why COBIT?

COBIT consists of 34 IT processes and is a way for an organization to use in its attempts to "balance risk and control in a cost-effective manner" (Pederiva, 2003).

Situation Analysis

• Does your enterprise’s IT support the business?
• Is it aligned with the business?
• Is your IT performing to its optimal capability?
• Is your IT adding value to the business?
• Are IT risks being effectively mitigated?
• Are your IT investments being effectively managed throughout their life cycle?
• Is the importance of governance understood at all levels of your enterprise?
• Are the benefits of your IT being maximized?

If you did not answer yes to all of the above questions, your enterprise does not have an effective IT governance framework in place. Most, if not all, business activities are affected by IT, with an increasingly visible impact to end users. Successful enterprises recognize the need to maximize the value of IT-related investments and that the need for the governance of IT is greater now than ever before. The best way to ensure this is to implement an IT governance framework.

An effective IT governance framework:

• Provides clear direction to ensure that IT investments support the business
• Is an effective way to manage change.
• Creates value for the business in alignment with enterprise objectives
• Addresses the complete life cycle of IT investment

COBIT, developed by ISACA®, is a comprehensive IT governance framework.
COBIT 4.1 addresses every aspect of IT and is the only governance framework that addresses the complete life cycle of IT investment.

What Does COBIT Do?
COBIT:

• Improves IT efficiency and effectiveness
• Helps IT understand the needs of the business
• Puts practices in place to meet the business needs as efficiently as possible
• Helps executives understand and manage IT investments throughout their life cycle
• Provides a method to assess whether IT services and new initiatives are meeting business requirements and are likely to deliver the benefits expected
• Helps to develop and document the appropriate organizational structures, processes and tools for effective management of IT
• Provides an authoritative, international set of generally accepted practices that helps boards of directors, executives and managers increase the value of IT and reduce related risks

What are the Benefits of Implementing COBIT?
There is a clear difference between enterprises that manage their IT well and those that don’t, or can’t. Implementation of COBIT is a sign of a well-run enterprise, as it is a proven and internationally accepted set of tools and techniques.
The benefits of implementing COBIT include:

• A common language for executives, business and IT staff
• A view, understandable to management, of what IT does
• A better understanding of how the business and IT can work together for successful delivery of IT initiatives
• Better alignment, based on a business focus
• Better quality IT services
• Improved efficiency and optimization of cost
• Reduced operational risk
• More effective management of IT
• Clear policy development
• More efficient and successful audits
• Clear ownership and responsibilities, based on process orientation

COBIT is a Road Map to Good IT Governance 

• Accepted globally as a set of tools that ensures IT is working effectively
• Functions as an overarching framework
• Provides common language to communicate goals, objectives and expected results to all stakeholders
• Based on, and integrates, industry standards and good practices in:

• Strategic alignment of IT with business goals
• Value delivery of services and new projects
• Risk management
• Resource management
• Performance measurement

IT Governance Is the Key Issue
Enterprises are sacrificing money, productivity and competitive advantage by not implementing effective IT governance
Executives need a better way to:

• Direct IT for optimal advantage
• Measure the value provided by IT
• Manage IT-related risks