Traditional IT governance frameworkaddresses governance and regulation aspects of applications, such as EnterpriseResource Planning (ERP) and Customer Relationship Management (CRM) which aremostly based on system of record. The main goal of IT governance is toalign technology to support the attainment of business goals (Ferguson et al.,2013; Luftman et al., 2010).
IT governance ismore related to the company’s internal and backend systems whereas digitalgovernance is external-facing which interact directly with customers andpartners (Nidumolu and Chakravarti, 2017). (IT Governance Institute, 2003) indicatesthat IT governance is the responsibility of the board andexecutives and is integral to enterprise governance. (Selig, 2016) further adds that IT governance is a journeytowards continuous improvement and that it involves both a top-down and bottom-up implementation approachas well as leadership to achieve success.
The digital technologies and applicationsare fluid, real time, and dynamic in nature. The digital applications aretransformational and are based on systems of engagement and experience, such asmobile-based, cloud based, 3-D printing, robotics, wearable computing and analytics.This implies an essential need for digital governance that covers all theaspects and dimensions of digital applications. Digitalgovernance framework need to support a unified framework to enhance and governboth legacy and digital applications in a standardized manner. Digitalgovernance helps digital initiatives towards successful implementation throughquantifiable results, and data driven decision-making.
Digital governance needsinnovation and its approach reflects a shift from traditional IT governance’smanagerial direction and power to worker empowerment and engagement (Dykes, 2012). (Nidumolu and Chakravarti, 2017) definescorporate digital governance as a framework for establishing accountability,roles and decision-making authority for an organisation and monitoring andmanagement of changes is an important aspect of corporate digital governance.