Research Of SMEs’ IT Governance

With the rapid development of information technology(IT), small and mediumenterprises(SMEs) have been continuously improving their production, operation,management, efficiency and level of decision-making, and consequently haveincreased their profits and competitiveness. IT has become an indispensable engine todrive SMEs. Therefore, a growing number of SMEs have become aware of thesignificance and the increasingly important role that IT plays and are more willing toinvest in IT construction. However, with the advancement of IT in SMEs, the"information paradox" phenomenon has emerged.Based on the intensive analysis of the current situation of SMEs’ IT constructionand the existing problems, the thesis points out that the key problems for SMEs’ ITconstruction do not lie in the technology, nor in funding, but in the lack of scientificand advanced IT management philosophy and approaches. To solve those problemsadvanced IT governance notions must be introduced. IT governance can ensure theconsistency between SMEs’ goals and IT construction, and, from a strategicperspective, making better planning and integration of existing IT resources toachieve the reasonable allocation of its maximum efficiency, help SMEs promotetheir operational management level and core competitiveness.Referring to Nolan model, IT life-cycle theory and IT governance theory, thisthesis explains how to implement IT governance in SMEs. Enterprise informationconstruction is a complicated systematic project, which could not be completedsimply with one step. Instead, it should be phased. Information construction phrasesvary from SME to SME. Therefore, during the information construction, SMEsshould first of all clarify their respective growth stage according to the Nolan model,and then, under the guidance of the characteristics of the construction phase, ITgovernance notions should be introduced into the SMEs’ IT construction. I believethat IT governance can be divided into six major vertical workflow in the process ofSMEs’ IT construction: planning IT strategies; establishing IT organization model;clarifying five IT decision-making keys; making IT governance arrangements andimplementation mechanisms; implementing IT governance; assessing IT governance.The workflow is accessed again and again and repeated and stressed each time withdifferent focus and intense throughout the life cycle (planning, implementation,operation and maintenance) of the IT construction.Finally, with the approach of case study, the thesis takes company A’s informationtechnology implementation as an example, analyzing the application of IT governancein the process of IT construction, providing scientific approaches to SMEs’ ITconstruction, and facilitating SMEs obtain competitive advantage with ITconstruction.