A Methodology for IT Governance by Viable System Modeling (VSM): an Action Research in Designing a Data Center

Abstract

This paper attempts to introduce a methodology as a tool for designing and diagnosing IT governance by the VSM approach. The viable IT governance can guarantee a dynamic alignment of the business strategy with IT business value in today’s complex situations. Organizations are becoming more and more dependent on IT and capital investment in IT has been increased in recent years. To create business value from IT, business and IT should be aligned. On the other hand, because of the complexity of the business environment, organizations should be adaptable to this uncertainty to guarantee their viability. Dynamic business and IT alignment can be achieved by viable IT governance in the ever-changing environment by the VSM approach. A methodology as a tool for the design and diagnosis (IT projects and IT operations) of viable IT governance has been proposed and action research in the real environment did in this study. Systematic action research did in the private sector in Iran which is responsible for designing and implementing data centers. A methodology for designing and diagnosing the viable IT governance is proposed based on VIPLAN method that was customized for IT governance. A methodology for designing and implementing IT governance by VSM is proposed. Dynamic alignment of business and IT is achieved by this approach. Action research did for designing and implementing the data center project by VSM. In a complex and dynamic environment, organizations should be adaptable and flexible in business strategies and operational structures. VSM is a cybernetics approach that can be used for organizational systems to overcome these complexities. At the same time, VSM can be used for IT governance and management to create a dynamic alignment of business and IT. Dynamic alignment can guarantee to achieve business value from IT.