IT Governance Demand/Supply Model (Gartner)

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What is the Gartner Supply and Demand Model for IT Governance?

Gartner defines IT Governance as processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals. [1]

The "IT as a Business" model envisions an IT organization as an internal supplier of IT services to the other functions of the business. Business functions need IT products and services thereby creating a demand for them, while the IT Department provides IT products and services thereby it is a supplier of these services. For the business to create value, the demand for IT services must be satisfied by their supply. An unsatisfied demand or an unneeded IT product or service, therefore, is a misalignment between business and IT.

Combining these two, Gartner proposes a model for IT Governance that splits its processes along the demand and supply side of IT services as follows:

  • IT demand governance (ITDG) concerns itself with what IT should work on or provide to the business
  • IT supply governance (ITSG) focuses on how IT should do what it does

Governance of IT Demand ensures the effective evaluation, selection, prioritization, and funding of competing IT investments; oversees their implementation, and extracts (measurable) business benefits. Governance of IT Supply ensures that the IT organization operates in an effective, efficient, and compliant fashion.

Demand-side governance's objective is the effective use of IT while that of the supply side is efficiency.

Gartner's IT Governance Demand Supply Model

See Also