Governance of the Extended Enterprise: Bridging Business and IT Strategies / Edition 1

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It's been said that information is the grease that allows anenterprise to run efficiently. This statement, when related toextended enterprises, can mean the difference between success orfailure, and profit or loss. When an effective governance approachis not in place to deal with issues that reside outside thephysical walls of extended environment, disaster will strike, andit will be costly. In recent years, Cisco Systems wrote off $2.5billion in inventory, due to poor information and management ofcosourced partners and suppliers; Micron Technologies wrote down$260 million of memory, or 32% of revenue, due to problems in thevalue chain; and IBM lost 16% of its value in one day due tovarious component shortages caused by lack of adequate partner andsupplier communication and information. Governance of the ExtendedEnterprise helps readers avoid these types of costly IT losses byproviding an effective process for change and a governance modelfor an extended enterprise.

The extended enterprise is a modern-day phenomenon that allowsan organization to operate outside its traditional boundaries.Internet technology is the facilitator for workgroup collaborationwithin and beyond the enterprise. The use of Internet-enabledgroupware and workflow technologies within and betweenorganizations is a highly effective means of providing immediatesolutions to an array of transaction-processing and information-delivery needs facing businesses. Such tools enhance service in theareas of sales-force automation, customer service, technicalsupport, workgroup collaboration, forms processing, order entry,knowledge management systems, and information delivery within theenterprise.

Providing readers with an abundance of new ideas and ways tothink, Governance of the Extended Enterprise uses concepts that arefamiliar and accepted by business and governmental entities. Italso helps professionals become familiar with the critical issuesrelated to doing business with world-class excellence in the newextended enterprise environment. Governance of the ExtendedEnterprise explores:

  • Vision/leadership
  • Strategy development with value innovation
  • Performance management to ensure value creation
  • Operational business activities that lead to the realization ofvalue/benefit
  • Understanding a governance structure, its criteria, and asuggested framework
  • Enterprise architecture, its importance to the business, andhow to implement an appropriate governance structur
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What People Are Saying

From the Publisher
"This awaited book is a precious guide for action for companies,involved in the harsh worldwide economic competition, whichconsider IT as a powerful tool to address the complexity of processmanagement outside their traditional borders. The extendedenvironment is more demanding in innovation as well as in controland implies vision, efficiency and robustness in ITmanagement.  As part of IT governance, this book adds thenecessary 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 modelcreation and governance dealing with our collaboration partiesusing internet technology. Very timely publication for practicalunderstanding 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 notbe visible to some, however, appears inevitable for continuedsuccess as a public sized company. This book helps the executive(IT and others) frame the Governance issues and opportunities to behad as we look beyond the physical walls of our organization towardthe Extended Enterprise. —Michael Calderon, V.P. InformationTechnology, The Hain-Celestial Group, Inc.

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Product Details

  • ISBN-13: 9780471334439
  • Publisher: Wiley
  • Publication date: 2/3/2005
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 224
  • Product dimensions: 9.21 (w) x 6.14 (h) x 0.56 (d)

Meet the Author

THE IT GOVERNANCE INSTITUTE® (ITGI) ( wasestablished in 1998 to advance international thinking and standardsin directing and controlling an enterprise's informationtechnology. Effective IT governance helps ensure that IT supportsbusiness goals, optimizes business investment in IT, andappropriately manages IT-related risks and opportunities. The ITGovernance Institute offers symposia, original research, and casestudies to assist enterprise leaders and boards of directors intheir IT governance responsibilities.

INFORMATION SYSTEMS AUDIT AND CONTROL ASSOCIATION®(ISACA®) ( is a recognized worldwide leader inIT governance, control, security, and assurance with more than35,000 members in more than 100 countries. Founded in 1969, ISACAsponsors international conferences; publishes the InformationSystems Control JournalTM; develops international informationsystems auditing and control standards; and administers both theglobally respected Certified Information System Auditor®(CISA®) designation carried by more than 35,000 professionalssince its inception, and the Certified Information Security Manager(CISMTM) designation, a groundbreaking credential earned by 5,000professionals in its first two years.

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Table of Contents




Managing Change as a Business Process.

How Do We Get There from Here?


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 inProcesses.

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 Organizationand Internal Clients.

Making Strategy a Continual Process: Coevolving andPatching.

Managing Knowledge for Better Communication: KnowledgeManagement.

Sharing Knowledge through a Knowledge Portal.

3. Value Creation and Management of Performance in theExtended 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 forImprovements.

Ongoing Strategy Process: Operational PerformanceMonitoring.

4. Operational Business Activities: Value Realization for theExtended Enterprise.

Value Realization.

Blueprint for Knowledge Sharing in an Extended Enterprise.

Objectives, Goals, and Expectations.

Information and Knowledge Resources (Intangible BusinessResources).

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 theExtended Enterprise.

Tools for the Governance of the Extended Enterprise.

6. Enterprise Architecture: Governance Implementation for theExtended Enterprise.

What Is Enterprise Architecture?

Enterprise Architecture: New Focus for Chief InformationOfficers.

Architecture Layers Interrelationships.

Implementing and Maintaining the Enterprise Architecture.

Information Technology Governance in the ExtendedEnterprise.

Strategic Alignment of IT Strategies with the Business.

IT Infrastructure to Enable Business.

Maturity Model of the Enterprise Architecture/ITArchitecture.

Partner Ability for Networking/Information Flows andRelationships.

Maturity Model for IT Governance.

Establish Information Model and Data Model for QuickImplementation of a Knowledge Base.


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 KnowledgePortal.

G: Enterprise Architecture Processes at Different MaturityLevels.

H: Maturity Model for Business Activities in the ExtendedEnterprise.

I: IT Governance.

J: IT Governance Maturity Model.

K: COBIT Information Processes.



Other ITGI Publications.


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