Why is stakeholder value significant in COBIT's framework?

Stakeholder value holds a central role in the COBIT framework because it emphasizes the importance of aligning IT governance decisions with the needs and expectations of all stakeholders involved. By enhancing the relevance of IT governance decisions, organizations can ensure that their IT strategies not only support overall business objectives but also take into account the diverse interests of stakeholders, including customers, employees, regulators, and investors.

When stakeholder value is prioritized, it encourages a more comprehensive view of IT investments and their impact on organizational performance. This alignment fosters better decision-making and resource allocation, as it considers how IT initiatives can maximize benefits across various stakeholder groups. As a result, organizations are more likely to achieve sustained competitive advantage and improve overall performance.

By making stakeholder value a focal point, COBIT enables organizations to navigate the complexities of IT governance while ensuring that technological advancements contribute positively to the broader organizational ecosystem.