Updated on 2025-05-22 GMT+08:00

COST01-02 Designing a Structured IT Governance System to Optimize Management Efficiency

  • Risk level

    High

  • Key strategies

    An IT governance structure that aligns with your organization helps manage costs across the entire organization. As business operations scale, establishing subsidiaries and branches, and breaking down large departments into smaller ones become common, resulting in a more complex organizational hierarchy. The IT governance framework of a company is also influenced by its organizational structure. It is important to align the framework with the enterprise management model to help manage people, finances, and resources in a multi-level organizational manner, ensuring accountability for all resources. In this way, the company can easily allocate costs to business teams—holding each team accountable for the services they consume.

  • Related services and tools

    If you are a large-sized enterprise or corporate group, you are advised to create a hierarchical organization with multiple accounts for unified accounting management. For details, see Enterprise Management and Organizations. With Enterprise Center enabled, you can isolate resources and costs on an account-by-account basis, helping you quickly expand business.

    If you are a small- or medium-sized enterprise or you are using a standalone account, you can enable Enterprise Project Management Service (EPS) to group costs based on the organizational structure. If you have other multi-dimensional and fine-grained planning requirements, you can use cost tags as a supplement to organization planning. For example, you can use a specific tag to identify the team, application, and owner of a specific resource.

    If an enterprise uses master-member account relationship for cost management, there are unified accounting and independent accounting solutions for master and member accounts.

    • In unified accounting, an enterprise master account can centrally manage costs of both its own account and the associated member accounts. This includes cost analysis, budget tracking, cost anomaly detection, and cost optimization recommendations—significantly improving financial management efficiency.
    • In independent accounting, the master account and the member accounts manage their own costs, including cost analysis, budget tracking, cost anomaly detection, and cost optimization recommendations. When member accounts grant access permissions, the master account can analyze both its own and the member accounts' expenditures.