Governance is essential for all companies' daily operations, especially IT. This is because IT will guide key business decisions and ensure that expected technology-related objectives are achieved within the expected timeframe .
The IT sector is one of the largest within Brazilian companies (both in terms of employees and demand) and is responsible for all the technology available in the market. When poorly structured and lacking in governance, this area can end up collapsing, which can bring countless problems to the company .
Knowing what they are and how they can be avoided is the most effective way to understand how good management makes all the difference in a business.
If you want to know the main unforeseen events that can arise in a company's day-to-day operations and what impact they can have on its results, then continue reading this content.
5 major problems caused by a lack of governance in IT
When a company experiences governance failures, some errors stand out more than others, making up the majority of all businesses with management problems.
These factors can turn into irreversible situations, which tend to bring negativity to the results.
When it comes to IT, there are some situations that occur more frequently and all of them present a risk to a business , regardless of its sector of activity in the market.
The main ones are:
1- Problems with team productivity
Productivity is one of the factors most affected in a company when there is a failure in governance.
This is because with the lack of productivity, professionals become unmotivated , as they are unable to visualize the goals and objectives to bring positive results to the company.
In addition, there are technical issues, such as slow equipment and software, which arise on a daily basis and, without leadership to address them, end up delaying the work of those involved, consequently hindering productivity on the part of professionals.
2- Unnecessary expenses
A company that has IT governance problems ends up incurring numerous expenses that are not necessary in its day-to-day operations.
This occurs because there isn't a dedicated team member dedicated to resolving issues in a shorter timeframe than usual. This results in delayed deliveries and even missed customer deadlines.
It is also possible to mention that good management of this area also contributes to equipment costs
This is because leaders now have a better understanding of whether it makes sense to invest in certain types of equipment and when it is necessary to replace them.
This behavior prevents the company from purchasing more materials than necessary or replacing parts that could still be useful to its employees.
3- Compliance issues
The IT department needs to be consistently compliant within a company, as it can directly affect all areas of the business, from operations to management.
When there is no governance, technology ends up being neglected, and this brings countless problems to the company, causing a completely unfavorable domino effect.
All of this ends up generating a huge reduction in the positive results that should be delivered by IT , causing other areas to lose control and start to face worrying crises in their routine.
4- Lack of communication between the main areas
Business governance is responsible for maintaining communication between customers, managers, and employees, ensuring everyone is working toward a common goal.
If there is a failure in this area, everyone involved in the project ends up suffering from gaps in their decision-making.
All of this can end up causing major disruption to the company, which, if not reversed, can have very negative repercussions for the business.
5- Leakage of confidential information and data
When there is no effective leadership at the helm of IT, all of the company's confidential information and data are vulnerable to potential leaks and even system or database hacks.
A company that is not secure online becomes an easy target for people looking to find vulnerabilities.
The leak of this information can be very costly for a business , as it is data that allows it to remain in the market and achieve positive results.
Furthermore, all customers present in the company's database also end up being vulnerable to attacks, as the business also loses control over the material of each of its contractors.
A company's security breach can snowball, and everyone involved, whether managers or employees, can end up being exposed online. This situation is unlikely to be completely reversed.
The importance of IT governance for a company
From the examples cited above, it is possible to see that IT governance is essential for a company to be successful.
Without IT governance, the business may be at risk of collapse, causing numerous problems and even causing bankruptcy.
Want to learn more about IT governance and its importance for a company? Then watch the following video:
Based on this information, it's now possible to clearly understand how IT governance is necessary for a company seeking the best results for its customers.
How do you know if IT governance is being executed well?
There are some factors that can be observed in a company, which ensure that its IT governance is being well executed.
This is because this area is capable of offering different benefits to a business , all of which are of great importance when it comes to maintaining the good work of a team.
The main signs are:
- Good risk management .
- Effective strategic alignment
- Resource management ;
- Quality of service ;
- Cost reduction ;
- Innovation.
Companies that have these factors present in their daily operations will hardly need to worry about future problems with their IT area.
Conduct a brief analysis of your company's IT department and identify whether problems like the ones mentioned above exist . Perhaps with small changes, you can implement good IT governance and avoid several problems in your company.
Until later!
