Changes in IT Governance for Business Transformation in Banking Industry: Case of PT XYZ in Indonesia
Aristides Fariz1, Ruth Magdalena2, Theresia Nathania A. P.3, Muhamad Yasil F.4, M. Rifki Shihab5
1Aristides Fariz, Faculty of Computer Science, University of Indonesia, Jakarta, Indonesia.
2Theresia Nathania A. P., Faculty of Computer Science, University of Indonesia, Jakarta, Indonesia.
3Ruth Magdalena, Faculty of Computer Science, University of Indonesia, Jakarta, Indonesia.
4Muhamad Yasil F., Faculty of Computer Science, University of Indonesia, Jakarta, Indonesia.
5M. Rifki Shihab, Faculty of Computer Science, University of Indonesia, Jakarta, Indonesia.
Manuscript received on 09 January 2020 | Revised Manuscript received on 05 February 2020 | Manuscript Published on 20 February 2020 | PP: 137-142 | Volume-9 Issue-3S January 2020 | Retrieval Number: C10310193S20/2020©BEIESP | DOI: 10.35940/ijitee.C1031.0193S20
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Changes in IT governance is urgently needed to support the business transformation. PT XYZ is a bank that transformed its business model to compete optimally in today’s digital era. The reasons are to modernize legacy systems and existing work units, develop more customer-centric products, and expand banking service coverage. This research’s objectives were to look at elements of IT governance by De Haes & Grembergen which are structures, processes, and relational mechanisms. The analysis was carried out by looking at the condition of the bank before and after the transformation that happened because of changes in the governance of IT decision making that will be seen using theory from Weill & Ross. Data were collected from annual and internal reports, also interviews with parties related to IT governance at PT XYZ. The results of this research showed that transformation happened in all elements of IT governance. Changes in organizational structure and alignment processes between business and IT, as well as product development methods such as the application of bi-modal governance, which uses both waterfall and agile, occurred after the transformation. Recommendations are given to PT XYZ to restructure the organization and schedule regular meetings to affiliate IT project development.
Keywords: Banking Industry, Business Transformation, IT Governance.
Scope of the Article: Aggregation, Integration, and Transformation