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Governance of the Extended Enterprise


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Table of Contents

Acknowledgments. Preface. Introduction. Managing Change as a Business Process. How Do We Get There from Here? Vision/Leadership. Value Creation and Performance Management. Governance Framework and Criteria. Governance Officer. Enterprise Architecture: Framework and Implementation. Reference Works. Looking Forward. 1. Extended Enterprises. Change Agents in the Extended Enterprise Environment. Paradigm Shift in the Business Environment/Changes in Processes. 2. Strategy: Challenge for the Extended Enterprise. Business Strategy Challenge. New Enterprise Risk Management Structures. New Regulatory Compliance Challenge. Developing Strategy with Value Innovation. Transforming Internal Governance Strategy. New Internal Governance Challenge. Governance Challenge. Bridging the Gap between the Information Technology Organization and Internal Clients. Making Strategy a Continual Process: Coevolving and Patching. Managing Knowledge for Better Communication: Knowledge Management. Sharing Knowledge through a Knowledge Portal. 3. Value Creation and Management of Performance in the Extended Enterprise. Vision and Mission. Value Creation and Strategy Implications. Necessity of a Core Repository of Knowledge Portal. Suggested Architecture for Performance Measurement. Delegate and Empower through Performance Management. Framework for Measurement. Control Objectives for Information and Related Technology. Monitoring: Measuring and Comparing Outcomes for Improvements. Ongoing Strategy Process: Operational Performance Monitoring. 4. Operational Business Activities: Value Realization for the Extended Enterprise. Value Realization. Blueprint for Knowledge Sharing in an Extended Enterprise. Objectives, Goals, and Expectations. Information and Knowledge Resources (Intangible Business Resources). Information Sharing Activities (Two-way Communication). Operational Business Activities. Tangible Business Resources. Value Creation Cycle. 5. Governance Framework for the Extended Enterprise. Governance Definition. Enterprise Governance Challenge in the Extended Enterprise. Governance Structure for the Extended Enterprise. Governance Objectives for the Extended Enterprise. Comparison with Excellence Models. Leadership: Driver for Values and Governance Implementation. Maturity Levels of Leadership. Maturity Model for Evaluating the Level of Governance of the Extended Enterprise. Tools for the Governance of the Extended Enterprise. 6. Enterprise Architecture: Governance Implementation for the Extended Enterprise. What Is Enterprise Architecture? Enterprise Architecture: New Focus for Chief Information Officers. Architecture Layers Interrelationships. Implementing and Maintaining the Enterprise Architecture. Information Technology Governance in the Extended Enterprise. Strategic Alignment of IT Strategies with the Business. IT Infrastructure to Enable Business. Maturity Model of the Enterprise Architecture/IT Architecture. Partner Ability for Networking/Information Flows and Relationships. Maturity Model for IT Governance. Establish Information Model and Data Model for Quick Implementation of a Knowledge Base. Appendices. A: Questions for the Board and Senior Management. B: Performance Reference Model. C: Organizational Structure Evolution: Core versus Central. D: Framework and Quality Awards. E: Business Reference Model. F: Knowledge Work, Knowledge Management, and Knowledge Portal. G: Enterprise Architecture Processes at Different Maturity Levels. H: Maturity Model for Business Activities in the Extended Enterprise. I: IT Governance. J: IT Governance Maturity Model. K: COBIT Information Processes. Glossary. References. Other ITGI Publications. Index.

About the Author

THE IT GOVERNANCE INSTITUTE (R) (ITGI) ( was established in 1998 to advance international thinking and standards in directing and controlling an enterprise's information technology. Effective IT governance helps ensure that IT supports business goals, optimizes business investment in IT, and appropriately manages IT-related risks and opportunities. The IT Governance Institute offers symposia, original research, and case studies to assist enterprise leaders and boards of directors in their IT governance responsibilities. INFORMATION SYSTEMS AUDIT AND CONTROL ASSOCIATION (R) (ISACA (R)) ( is a recognized worldwide leader in IT governance, control, security, and assurance with more than 35,000 members in more than 100 countries. Founded in 1969, ISACA sponsors international conferences; publishes the Information Systems Control JournalTM; develops international information systems auditing and control standards; and administers both the globally respected Certified Information System Auditor (R) (CISA (R)) designation carried by more than 35,000 professionals since its inception, and the Certified Information Security Manager (CISMTM) designation, a groundbreaking credential earned by 5,000 professionals in its first two years.


"This awaited book is a precious guide for action for companies, involved in the harsh worldwide economic competition, which consider IT as a powerful tool to address the complexity of process management outside their traditional borders. The extended environment is more demanding in innovation as well as in control and implies vision, efficiency and robustness in IT management. As part of IT governance, this book adds the necessary vision of a thorough approach" --Jean-Pierre Corniou, Senior VP Chief Information Officer, Renault Group "This book gives a lot of ideas for our new business model creation and governance dealing with our collaboration parties using internet technology. Very timely publication for practical understanding of SOX and new COSO concept." --Shuzo Sumi, CIO, Tokio Marine & Nichidou Fire Insurance Co., Ltd. Today's participation in the Extended Enterprise model may not be visible to some, however, appears inevitable for continued success as a public sized company. This book helps the executive (IT and others) frame the Governance issues and opportunities to be had as we look beyond the physical walls of our organization toward the Extended Enterprise. --Michael Calderon, V.P. Information Technology, The Hain-Celestial Group, Inc.

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