Researchers from the Policy Studies Institute, Addis Ababa University, and Ethiopian IT Park have presented their findings on a research project titled "IT Governance in Ethiopian Public Sectors: The Need for Policy Intervention." on August 7,2024.
The research team, comprising Fikirte Zemene, Getahun Wassie, Teshome Alemu, and Melkamu Beyene, conducted a comprehensive study to assess the state of IT governance within the Ethiopian public sector.
The research highlights the urgent need for policymakers to intervene and establish a coherent IT governance framework for the public sector," said Dr. Melkamu Beyene, the lead researcher on the project. "Without such a framework, the public sector will continue to struggle with issues related to data security, technology integration, and overall efficiency."
Henok Ahmed - Chief Executive Officer - IT Park Corporation
According to Dr. Melkamu Beyene, the motivation behind the study was to address the growing importance of IT in the public sector, as well as the ongoing digital transformation in Ethiopia."The IT revolution, the strategic importance of IT, and the digital transformation agenda in Ethiopia have all contributed to the need for this research," Dr. Melkamu explained. "As the public sector embraces new technologies, we are also facing emerging challenges in IT governance that require immediate policy intervention."
Dr. Melkamu Beyene
Dr. Melkamu said our research has shown that the lack of a coherent IT governance framework has hindered the public sector's ability to effectively leverage digital technologies and respond to emerging challenges. He added that by addressing these governance issues, we can unlock the full potential of digital technologies to improve public service delivery and enhance overall government efficiency.
Dr. Melkamu underscored that one key issue was "Governing IT by Default" - the researchers found that many government institutions were managing their IT resources without a clear and formalized governance framework in place. This led to ad-hoc and reactive decision-making around technology, rather than a strategic, proactive approach.
Additionally, the team identified "Alignment Issues", where there was a lack of clear integration between IT strategies and the overall objectives and priorities of the public sector organizations. This disconnect hindered the effective leveraging of technology to support the organization's core mission and goals.
The researchers also noted instances of "Role Conflict" within IT departments, with unclear delineation of responsibilities between IT personnel and other departmental staff. This lack of role clarity likely contributed to inefficiencies and suboptimal IT service delivery. Lastly, the study highlighted the need for "Senior Leaders' Issues" - greater involvement and support from senior leadership in driving IT governance initiatives within the public sector. Without this executive sponsorship and buy-in, efforts to improve IT governance were hampered. Addressing these preliminary challenges was a key driver behind this research, which aimed to uncover insights and recommendations to strengthen IT governance practices in public sector organizations.
Fikirte Zemene, Researcher at PSI
Dr. Melkamu expressed that the key research questions addressed in this study were: What are the key challenges, factors, and requirements that need to be addressed by an IT governance framework? How can an IT governance framework be effectively designed to suit the context of the Ethiopian public sector? What types of policy interventions would enhance the adoption of IT governance within Ethiopian public sector organizations?
The researchers observed some preliminary challenges that prompted the need for this study. These include: 1) Governing IT by Default - the researchers found that many government institutions were managing their IT resources without a clear governance framework, leading to ad-hoc and reactive decision-making; 2) Alignment Issues - the team identified a lack of alignment between IT strategies and the overall objectives of public sector organizations, hindering the effective integration of technology; 3) Role Conflict - the researchers noted instances of role conflict within IT departments, with unclear delineation of responsibilities between IT personnel and other departmental staff; and 4) Senior Leaders' Issues - the study also highlighted the need for greater involvement and support from senior leadership in driving IT governance initiatives within the public sector.
The study addresses a gap in the existing literature, which has primarily focused on IT governance in developed countries and the private sector. By examining IT governance in the context of the Ethiopian public sector, the study provides valuable insights into the unique challenges and requirements of IT governance in a developing country setting.
The researchers found that existing commercial IT governance frameworks may not be directly applicable to the Ethiopian public sector context. The study therefore aimed to develop an IT governance framework that is tailored to the specific needs and constraints of the public sector in a developing country.
The study combined different meta-governance models, such as the Corporate Governance of IT (CGIT) and the ISO/IEC 38500 frameworks, to inform the development of a comprehensive IT governance framework for the Ethiopian public sector.The researchers took into account the unique contextual factors, such as the level of digital transformation, the role of senior leadership, and the capacity of public sector employees, when designing the IT governance framework. In addition to proposing an IT governance framework, the study also provided recommendations on the implementation mechanisms and policy interventions required to effectively adopt IT governance in the Ethiopian public sector.
Dr. Melkamu also defined IT Governance from different perspectives. One perspective is that IT governance is the responsibility of the board of directors and executive management, and consists of the leadership, organizational structures, and processes that ensure that the organization's IT sustains and extends the organization's strategies and objectives.Another perspective is that IT governance is the responsibility of the executives and board of directors, and consists of the leadership, organizational structures, and processes that ensure that the enterprise's IT sustains and extends the organization's strategies and objectives.
Dr. Melkamu explained that IT governance is a multifaceted concept that aims to address several key questions for top management. Fundamentally, IT governance is about how top management can ensure that their CIO and IT organization are delivering business value, while also maintaining control and preventing misuse of resources or investment in poorly aligned projects.
Specifically, the three key questions that IT governance seeks to answer are: 1) How does top management get their CIO and IT organization to return some business value? 2) How does top management make sure that their CIO and IT organizations do not steal the capital they supply or invest in bad projects? and 3) How does top management control their CIO and IT organization? These different definitions and questions underscore the critical role that executive leadership and organizational structures play in aligning IT strategy and operations with the broader goals and objectives of the business. Effectively addressing these governance challenges is crucial for public sector organizations to fully leverage technology and achieve their desired outcomes.
Dr. Melkamu stated that the research used the Design Science Research Methodology as the research method. This is an emerging methodology in the field of Information Systems. The Design Science Research Methodology provides a rigorous framework to create and evaluate an artifact. In this case, the artifact being developed is an IT Governance Framework. There are different process models within the Design Science Research Methodology. While the specific process models may vary, there are some common processes that are included across the different models, such as those outlined by Peffers and Hevner.
By using the Design Science Research Methodology, the study was able to systematically develop and evaluate the IT Governance Framework as the key artifact produced through the research. This methodological approach helps ensure a robust and rigorous process for creating practical, real-world solutions to address important Information Systems challenges.
Numerous IT governance models were reviewed as part of the research. These include COBIT (Control Objectives for Information Technologies), ITIL (Information Technology Infrastructure Library), and ISO 38500 (Corporate governance of information technology).
COBIT emphasizes the importance of aligning IT with business goals, ensuring effective risk management, and providing control measurements. ITIL offers a set of best practices for delivering high-quality IT services. ISO 38500 focuses on top-level management responsibility, accountability, and decision-making rights.
Each of these models presents unique strengths and limitations. The choice of an appropriate model depends on the organization's specific needs and objectives. Given the context of the study, a more comprehensive framework was required.
From the literature review, six key focus areas were identified for the IT governance framework: alignment, IT leadership, IT resource utilization, IT risk, and IT performance. These areas capture the multifaceted nature of IT governance and the need to address both strategic and operational aspects.
The research found that effective IT governance and strategic alignment are critical for public sector organizations to leverage technology and achieve their organizational objectives. However, the study also highlighted several significant challenges that need to be addressed.
These challenges include a lack of standardized evaluation metrics, formal alignment processes, and consistent IT integration across the organization. Many public sector entities exhibited low levels of IT-business alignment, with IT not always considered a strategic tool. There were also implementation gaps, influenced by government policies, budget constraints, and a lack of prioritization mechanisms.
Another key issue was the limited interaction between IT and corporate governance bodies on strategic issues. There was a general lack of standardized approaches to measure and monitor IT-business alignment. To address these problems, the research recommended that public sector organizations develop comprehensive IT strategies that are well-aligned with their overall organizational goals. It also suggested enhancing the interaction between IT and institutional governance bodies, as well as implementing standardized metrics to evaluate the effectiveness of IT.
The research also found a range of perceptions regarding IT governance within the public sector organizations. There were some areas of good perception, such as top management supporting IT governance initiatives and IT leadership being proactive in addressing IT-related issues. However, there were also mixed perceptions, with less commitment to IT initiatives in some cases.
Many of the organizations were in a state of transition, with the default IT structure serving more as a support function rather than a strategic partner. Some entities were undergoing restructuring, with IT units led by a CIO but not fully integrated into the strategic decision-making team.
Challenges were also identified around IT leadership and governance structures. There were issues with high turnover, and IT leadership was not always part of the strategic team. Committees tended to be ad-hoc or project-based rather than formalized.
However, the research did find an increasing collaboration between IT and the business departments, primarily for support services. This suggests a growing recognition of the need to bridge the gap between IT and the organization's core functions.
To address these challenges, the report highlighted several crucial recommendations. First, there is a need to enhance the supporting and budgeting for IT initiatives, to increase commitment and ensure adequate resources. Second, the establishment of formalized governance structures is essential to ensure consistent oversight and effective management of IT projects.
Third, the sectors should foster greater collaboration and integration between IT and other departments through cross-functional teams and shared objectives. This will help break down silos and align IT more closely with the organization's strategic goals.
The research also identified issues with user satisfaction measurement, such as inconsistent application, lack of formalized procedures, and limited resources for continuous monitoring and improvement. Addressing these gaps, along with resistance to change and digital literacy among staff, will be crucial to enhancing the user experience and the overall effectiveness of IT initiatives.
The research emphasized the importance of implementing robust performance measurement frameworks. This includes ensuring that IT projects are completed on time and within budget, that IT performance is regularly reviewed and assessed, and that IT investments are providing value to the organization. Developing targeted metrics and KPIs to evaluate the impact of emerging technologies will also be a key priority.
"The findings of this study are crucial for driving much-needed reforms in the way the Ethiopian government manages its IT resources," said Dr.Melkamu. "By addressing these governance issues, we can unlock the full potential of digital technologies to improve public service delivery and enhance overall government efficiency."
In conclusion, this research project has shed important light on the state of IT governance within public sector organizations in Ethiopia. The findings reveal a mixed landscape, with some areas of good practice but also significant challenges that require policy intervention and concerted efforts to address