DANONE CORPORATE GOVERNANCE
Analyze DANONE’S corporate governance strategy in the three major areas of “effective IT governance mechanisms”
Mechanisms that facilitate decision making: First of all, Information Technology (IT) governance means the decision rights and accountability framework for encouraging desirable behavior in the use of IT. In recent times, IT governance has become critical for ensuring that IT-related decisions match company-wide objectives; particularly with the development of various tools in the IT area. Good IT governance makes companies more successful by establishing coordinated mechanisms that link objectives to measurable goals. According to the article “Recipe for Good IT Governance”, there are five types of decisions companies can go through:
IT principles decisions dictating the role of IT in the enterprise 2.
IT architecture decisions on technical choices and directions 3.
IT infrastructure decisions on the delivery of shared IT services 4.
Business application requirements decisions for each project 5.
IT investment and prioritization decisions
Before Analyzing Danone’s corporate governance strategy, one should look on to the “Effective IT Governance Mechanisms” which are categorized into three areas and scored on a 1 to 5 scale, 1 being highly ineffective and 5 being highly effective:
Effective IT Governance Mechanisms
To have good governance in terms of information, a company needs to: first, limit the number of decision-making structures and give clear responsibilities for each type of IT decision to individuals who can accept accountability for the outcomes of those decisions. Second, they should create overlapping responsibilities for IT decisions to ensure cross-coordination. Finally, senior management should be involved in major IT decisions since they establish strategic direction and define desirable behavior for the management and use of IT.
To look at DANONE as a company, it has a unique...
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