BS ISO/IEC 38506:2020 - Governance of IT Enabled Investments

In the rapidly evolving world of information technology, effective governance is crucial to ensure that IT investments align with organizational goals and deliver maximum value. The BS ISO/IEC 38506:2020 standard provides a comprehensive framework for the governance of IT-enabled investments, offering guidance on how to apply the principles of ISO/IEC 38500 to enhance decision-making processes and optimize IT resources.

Overview of BS ISO/IEC 38506:2020

This standard, officially titled Information Technology. Governance of IT. Application of ISO/IEC 38500 to the Governance of IT Enabled Investments, is a vital resource for organizations seeking to improve their IT governance practices. Released on February 25, 2020, and spanning 24 pages, it is a concise yet powerful tool for IT leaders and decision-makers.

Key Features

• Standard Number: BS ISO/IEC 38506:2020
• Pages: 24
• Release Date: 2020-02-25
• ISBN: 978 0 580 94857 2
• Status: Standard

Why Choose BS ISO/IEC 38506:2020?

Organizations today face numerous challenges in managing IT investments, from aligning them with strategic objectives to ensuring they deliver expected benefits. The BS ISO/IEC 38506:2020 standard addresses these challenges by providing a structured approach to IT governance. Here are some reasons why this standard is indispensable:

1. Alignment with Strategic Goals

BS ISO/IEC 38506:2020 helps organizations align their IT investments with their strategic goals. By applying the principles of ISO/IEC 38500, organizations can ensure that their IT initiatives support their overall business objectives, leading to more effective and efficient use of resources.

2. Enhanced Decision-Making

Effective governance requires informed decision-making. This standard provides a framework for evaluating IT investments, enabling organizations to make decisions based on comprehensive analysis and evidence. This leads to better outcomes and a higher return on investment.

3. Risk Management

IT investments come with inherent risks. BS ISO/IEC 38506:2020 offers guidance on identifying, assessing, and mitigating these risks, ensuring that organizations can manage their IT portfolios with confidence and minimize potential negative impacts.

4. Improved Accountability

With clear governance structures and processes, organizations can establish accountability for IT investments. This standard helps define roles and responsibilities, ensuring that all stakeholders understand their part in the governance process and are held accountable for their actions.

5. Optimized Resource Utilization

By applying the principles outlined in BS ISO/IEC 38506:2020, organizations can optimize their use of IT resources. This leads to cost savings, improved efficiency, and the ability to allocate resources to the most critical projects.

Who Should Use This Standard?

BS ISO/IEC 38506:2020 is designed for a wide range of stakeholders involved in IT governance, including:

• IT Leaders: CIOs, CTOs, and other IT executives who are responsible for overseeing IT investments and ensuring they align with business objectives.
• Board Members: Directors and board members who need to understand the governance of IT investments to make informed strategic decisions.
• Project Managers: Professionals managing IT projects who require a framework for evaluating and governing their initiatives.
• Risk Managers: Individuals responsible for identifying and mitigating risks associated with IT investments.

Conclusion

In today's digital age, the governance of IT-enabled investments is more critical than ever. The BS ISO/IEC 38506:2020 standard provides a robust framework for organizations to enhance their IT governance practices, ensuring that IT investments deliver value and support strategic objectives. By adopting this standard, organizations can improve decision-making, manage risks, and optimize their IT resources, ultimately leading to greater success and competitiveness in the marketplace.

Whether you are an IT leader, board member, project manager, or risk manager, BS ISO/IEC 38506:2020 is an essential tool for navigating the complexities of IT governance and maximizing the benefits of your IT investments.

BS ISO/IEC 38506:2020

This standard BS ISO/IEC 38506:2020 Information technology. Governance of IT. Application of ISO/IEC 38500 to the governance of IT enabled investments is classified in these ICS categories:

• 35.020 Information technology (IT) in general

This document provides guidance on governance of IT enabled investments to the governing body of all forms of organizations, whether private, public or government entities, and will equally apply regardless of the size of the organization or its industry or sector. The terms business and business outcome throughout this document include all forms of organization covered by this document.

The document also provides guidance to other parties interacting with governing bodies such as project personnel, accountants, management consultants, investment portfolio managers and governance support staff.

IT enabled investments within the scope of this document could be investments of any scale from acquiring businesses to any business change incorporating IT, building new business services or addressing effectiveness and efficiency gains in IT operational services to gain competitive edge, whether those services are internal or provided by external parties.

Resource allocation for strategic innovation is addressed by providing guidance to the governing body’s decision for investment resource allocation between short-, medium- and long-term innovation projects.

This document also provides guidance that can be applied in the due diligence process related to business acquisitions. This document may provide guidance on the application of the principles documented in ISO/IEC 38500 for ranking IT enabled investments including assessing the value and risks of IT elements in the context of investment banking or as performed by investment companies.

This document does not prescribe or define specific management practices required for IT enabled investments.

ISO/IEC TS 38501 contains guidance on the implementation arrangement for the effective governance of IT in general. The constructs in ISO/IEC TS 38501 can help to identify internal and external factors relating to the governance of IT and to define beneficial outcomes and identify evidence of success. ISO/IEC TR 38502 contains guidance on the integration between the governing body and management of an organization in general.

This document is written in accordance with the principles of ISO/IEC TR 38504:2016.