As technological resources evolve, we see companies increasingly dependent on Information Technology (IT) to continuously improve their business processes. Among these processes, business management is at the top, demanding a new stance from organizations – one that is more transparent and responsible.

Transparency and responsibility, along with fairness and accountability, are the principles of Corporate Governance, meaning the set of best practices that guide company management. And, if IT influences the way companies manage their businesses, it also directly impacts Corporate Governance. But what are these impacts?

IT organizes and automates processes

The most basic use of Information Technology in organizations is in the organization and automation of processes. It is with the help of IT that processes are aligned, communication flows are streamlined, and productivity is increased.

It is also through IT that organizational knowledge is shared among all stakeholders of the organization, keeping them abreast of the company's activities, its goals, and its results.

In this sense, IT contributes to the organization achieving the principles of transparency, fairness, accountability, and responsibility advocated by Corporate Governance, as it makes processes clearer and more transparent, allows for greater control over business results, shares these data and information with everyone, and levels knowledge within the company.

IT aligns thoughts, behaviors, and strategies

For a company to succeed in Corporate Governance, everyone needs to have a shared understanding of the short, medium, and long-term organizational objectives and work together to achieve them.

Once again, IT plays an important role in this alignment, as it establishes management parameters, translated into strategic maps and performance indicators that guide everyone's actions.

Furthermore, Information Technology promotes transparency of actions through the sharing of generated knowledge, providing organizational stakeholders with a comprehensive view of the company's performance over time.

IT contributes to raising the company's credibility in the market

As a management tool aimed at facilitating the understanding of the diverse market scenarios in which a company operates, IT contributes to increasing the company's credibility in the market by making business data and information more reliable.

With a good strategic management system The company is capable of constantly evaluating its own performance, measuring its results, and thereby outlining new strategies for accessing capital markets, bringing value propositions to shareholders and investors.

Through IT, the company is also capable of identifying the organizational risks it is exposed to with greater precision and, with this, drawing up action plans to mitigate these risks, which increases its standing with stakeholders and opens doors to new business opportunities.

IT generates more value for the business

The global objective of Corporate Governance is to generate value for the business, which can be achieved much more effectively with the right support, i.e., the presence of the right technology.

Value generation for a company comes from various fronts, such as employee productivity, differentiation of products and services in relation to the competition, agility in decision-making, cost reduction capabilities to increase competitiveness, among others.

Across all these fronts, we see the direct application of Information Technology. Automated processes lead to increased productivity; research and development of products and services are directly tied to the use of technologies; agility in responding to market demands comes from a management system that centralizes all business information; cost reduction is linked to process effectiveness, and so on.

And what does that mean? That Corporate Governance without the support of Information Technology is a difficult burden to bear, as the management of data, information, and resources becomes practically impossible.

Could your company survive without the assistance of IT? Do you believe it's possible to implement Corporate Governance without the support of technology? Leave your comment!