Relevance of IT and Software Asset Management in Corporate Governance

Corporate Governance is about principles, processes, systems and accountabilities that influence how business corporations take decisions, allocate resources/returns, execute responsibilities and undertake risk management, whether financial or otherwise, with an objective of protecting and promoting the interest of the shareholders, management, board of directors and the employees.

When we talk of accountabilities, risk management and allocation of resources from a corporate governance point of view, management of software as an asset and having a control on other IT and security related issues within an organization becomes relevant. Since the need for Software is all pervasive to any organization using computers to run its operations and that software distribution and usage is licensed (open or proprietary) and protected under IPR laws, IT governance becomes one of the integral parts of Corporate Governance.

Therefore, we can say that IT Governance is a framework for the organizational management to adopt industry standards and ethical practices to ensure a healthy, secure, productive and compliant IT infrastructure (both hardware and software), which enables an organization to achieve its business goals and objectives.

Businesses of all sizes benefit financially from IT governance. Research shows that:
• Businesses are 20 percent more profitable than similar firms with poorer governance.
• Investors pay 14 to 22 percent more for well-run, well governed companies.
• Top-rated corporate governance companies consistently return more than triple the profits to investors than that of lower-rated companies over 3, 5, and 10 years.