Cloud Computing and governance issues Data Digital assets

Cloud Computing and governance issues Data, Digital assets and Platforms for innovation The World Conference on Intellectual Capital for Communities UNESCO, July 12&13 Presented by: Sabine Khalil 1

Introduction • Cloud defined by NIST “a model for enabling convenient, ondemand network access to a shared pool of configurable computing resources (e. g. , networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction” (Mell and Grance, 2011) • New form of IS outsourcing – Harnesses virtualization and Internet, flexible and scalable while traditional is manual and more expensive (resources) • Falls under the virtualization and servicization trends in IS • Raises a broad range of organizational issues

Outline Cloud Boosters and Inhibitors IT Governance and Business Transformation Research Design Exhaustive Literature Review Twenty interviews with professionals Results Governance issues Discussion and Conclusion

Cloud Boosters • Total cost reduction – – Economies of scale (offers of several CSPs) Trading Cap. Ex with Op. Ex Easy entrance of start-ups Ecological • Agility – Rapidly and cost efficiently adapting to changes – Increases performance and efficiency of organization • Scalability • Ubitiquitous characteristic – Anywhere, Anytime, Anyway

Cloud Inhibitors • Security, privacy, confidentiality – Storing sensitive data and information – Loss of data – Multi-tenancy • Reversibility – Contractual – Technological (interoperability) • Reliability – Untrusted providers – Congestion

IT Governance and Business Transformation • Link between cloud, IT governance and business transformation • IT governance definition “the organizational capacity exercised by the board, executive management and IT management in formulating and implementing IT strategy” (Van Grembergen, 2004) – Vital to have proper and adequate capacities and structures to align business and IT strategy • To welcome the cloud, capacities and structures dedicated to it are needed

Continued • Large 2016 survey (1, 061 IT professionals), the lack of resources and expertise was listed as a top problem of the cloud • Prasad et al. (2014), Oredo and Njihia (2012), Rajendran (2013), Joha and Janssen (2012), Guo et al. (2010) also agreed on the need of an internal policy specific to the cloud • Additional capabilities made to the current organizational structures to satisfy cloud needs (Joha and Janssen, 2012) – Cloud strategy, demand relationship management, data security, IT network, cloud procurement, etc. • Prasad et al. (2014) affirmed need the presence of – Chief Cloud Officer (CCO), Cloud Management Committee (CCM), Cloud Service Facilitation (CSF), and Cloud Relationship Center (CRC).

Research Design • Cloud services affect the organization – management (information access, protection, control, etc. ) – organizational restructuring and governance – risks (security, performance, reliability, etc. ) • Researchers did not tackle the effects on different aspects of IT governance specifically • Fifteen interviews with professionals to validate exhaustive literature review

Qualitative Research Fifteen interviews with professionals from large organizations in France CIOs, CEOs, IT professionals Semi-structured Banking, Entertainment, Energy, Transportation, etc. Recorded and fully transcribed Analyzed with NVi. Vo

Results • The thematic coding in NVi. Vo led to – Impact on the technical aspect of IT governance – Impact on the strategic aspect of IT governance – Impact on the Business transformation

Impact on the technical aspect of IT governance Security switching from technical to contractual With legacy: check if security is well established (conducting several security tests) With cloud: check if security aspects mentioned in contract with the CSP are clear and answer the organization’s requirements Reversibility and legal issues Shadow IT

Impact on the strategic aspect of IT governance Different business departments and IT department contribution to cloud implementation Business-IT strategic alignment (via more discussions and coordination) Switch of the type of services from customization to standardization Change strategy to differentiate from competitors

Impact on the Business transformation IT department not only formed of IT professionals but mixed with business-oriented profiles Lack of correct competences and expertise to fit in today’s competitive market Effect on current employees whose jobs might be obsolete

Discussion and Conclusion • Even with its enormous advantages, cloud still has massive drawbacks • Neither the academic nor the professional literature tackled the role cloud solutions play on IT governance in organizations • Qualitative approach – Effects on technological aspects of IT governance, (security, reversibility, shadow IT) – Effects on strategic aspects of IT governance (strategic alignment, synergies, discussion) – Effects on business transformation (new competencies and expertise) • Limitation: Limited number of interviews

Thank you for your attention

References P. Mell and T. Grance, (20011). “The NIST definition of cloud computing, ” National Institute of Standards and Technology, vol. 53, 2011. Available on: http: //nvlpubs. nist. gov/nistpubs/Legacy/SP/nistspecialpublication 800145. pdf. K. Weins, “Cloud Computing trends: 2016 state of the cloud survey, ” Right Scale, February 9, 2016. Available on: http: //www. rightscale. com/blog/cloud-industry-insights/cloud-computing-trends-2016 -state-cloud-survey Z. Guo, M. Song, and J. Song, “A governance model for cloud computing, ” Management and Service Science (MASS), IEEE, pp. 1 -6, 2010. A. Joha and M. Janssen, “Transformation to cloud services sourcing: required it governance capabilities, ” ICST Transactions on e-Business, vol. 12, 2012. S. Rajendran, “Organizational challenges in cloud adoption and enablers of cloud transition program, ” Massachusetts Institute of Technology, Massachusetts, 2013. A. Prasad, P. Green, and J. Heales, “On governance structures for the cloud computing services and assessing their effectiveness”, International Journal of Accounting Information Systems, vol. 15, pp. 335 -356, 2014. J. O. Oredo and J. Njihia, “Challenges of cloud computing in business: towards new organizational competencies, ” International Journal of Business and Social Science, vol. 5, pp. 150 -160, 2014.