What is IT governance and how can it become a problem - an illustration from the Finnish electronic prescription system project

Governance structure is nowadays an extensively used concept both in management and IT literature as well. Yet the concept seems to be less than established. In this paper we tackle the concept from three points of view. First, we run through a literature study on the concept of governance structure. Second, we build a tentative framework on issues that organizations and their stakeholders, first and most importantly their management, meet when thinking about governance structures. Third, we deliver an example of how the governance structures became a problem in the case of a Finnish national IT project, the introduction of a national electronic prescription system. The project should serve as a prime example on how things can go wrong because of neglecting governance structure issues, even when the conceptual designs and technical solutions are there and would work in a satisfactory way. Our conclusion is that governance structure –related issues and problems can be many and difficult to foresee. However, neglecting them can be disastrous for an IT-project of any kind.