Masters Degrees (School of Accountancy)
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Browsing Masters Degrees (School of Accountancy) by Author "Botha, David Petrus"
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- ItemBridging the Information Technology (IT) gap in South Africa through a step by step approach to IT governance(Stellenbosch : Stellenbosch University, 2014-04) Botha, David Petrus; Van Zyl, Anria; Stellenbosch University. Faculty of Economic and Management Sciences. School of Accounting..ENGLISH ABSTRACT: The focus of this research was to compile a practical, step by step approach that can be followed by those persons charged with the governance of enterprises in South Africa to successfully bridge the information technology gap. The King Code of Corporate Governance for South Africa and the King Report on Corporate Governance for South Africa (together KINGIII) was identified as a starting point for the compilation of the approach. KINGIII is the corporate governance standard in South Africa and in the introduction to KINGIII it is recommended that the principles contained in the Code should be implemented by all entities. KINGIII is the third report on governance issued by the King Committee and introduced governance principles for Information Technology (IT). The Code contains seven IT governance principles and 24 recommended practices. The application of the IT governance principles of KINGIII, as well as the related recommended practices, is a complicated endeavour. This is partly because IT in itself is complex and also partly because the governance of IT is a relatively new area of corporate governance. Through a detailed study of the seven IT governance principles of KINGIII, as well as the related recommended practices and narrative discussions, it was identified that in order to successfully implement IT governance, a company has to establish and implement an IT governance framework which includes relevant structures, processes and mechanisms to enable IT to deliver value to the business. It was also identified that the IT governance framework has to facilitate and enhance the company’s ability to reach its stated objectives by ensuring that the most appropriate decisions are made in respect of the incorporation of IT into the operations of the business. Lastly, it was identified that a company must acquire and use appropriate technology and people to support its business.To address the requirement for the establishment and implementation of relevant structures, processes and mechanisms, a framework of 33 IT governance practices was identified, mapped to the IT governance principles of KINGIII and an analysis performed. Through this analysis the IT governance practices that can be utilised to implement the IT governance principles of KINGIII were identified and discussed. To address the requirement of ensuring that the framework facilitates that the most appropriate decisions are made in respect of the incorporation of IT into the operations of the business, five key decisions that have to be made in respect of IT was identified and discussed. The five decisions were mapped to (1) the KINGIII principles to demonstrate which of the IT governance principles are addressed by each of the decisions and (2) the IT governance structures identified in the framework above to demonstrate which of the IT governance structures can be used to provide input into taking the relevant decision and which can be used to take the decision. Finally, to address the requirement that a company must acquire and use appropriate people and technology to support its business, a framework of organizational competencies required in small and medium-sized enterprises (SME’s) was identified and mapped to (1) the KING III principles to demonstrate which of the IT governance principles could be addressed by each of the relevant competencies and (2) to the five key IT decisions identified above to demonstrate which of the competencies can be utilised to make each of the five key decisions. Based on the findings of the research conducted as set out above, the practical, step by step approach was compiled.