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How is IT governance critical for organizational success?

It helps in reducing operational costs

It ensures IT investments align with business goals

IT governance is essential for organizational success primarily because it ensures that IT investments align with business goals. This alignment facilitates a strategic understanding of how technology can enable the organization to achieve its objectives more effectively. When IT investments and projects are closely linked to the overarching goals of the business, it maximizes the return on investment and helps in prioritizing resources towards initiatives that facilitate growth and innovation.

By maintaining this alignment, IT governance also promotes a clear understanding of roles and responsibilities within the IT and business domains, encourages better decision-making, and helps foster collaboration between different departments. This integrated approach not only contributes to better resource utilization but also enhances the organization's agility in responding to market changes and evolving business needs.

While reducing operational costs is beneficial and aligns with good governance practices, the primary focus of IT governance is to ensure that IT strategies support and enhance the organization's strategic objectives. Moreover, while data management is an important aspect of IT governance, it is only a part of the broader framework that encompasses alignment with business goals. Lastly, compliance is crucial and cannot be eliminated; it is a fundamental component of governance that ensures organizations operate within legal and regulatory frameworks, further reinforcing the need for strategic alignment.

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It focuses solely on data management

It eliminates the need for compliance

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