Introduction to Val IT

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Introduction to

ICT 2010: Information Systems Security & Audit

Group 07

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Roadmap

• What is Val IT• Background• Objectives• Need of Val IT• Concept of Value• Seven Principles• Major Processes• The Police Case Study



• Waruna Kodituwakku

• Shanika Udeshini

• Dasitha Wijesundara

• Aloka Weerasooriya

• Harshani Wickramarachchi

Group Members

University of Colombo School of Computing



What is Val IT?

• A conservation framework which helps enterprises in investments

• Covers;• Value governance• Portfolio management• Investment management

• Consists with;• Principles• Processes• Best practices



Background of Val IT IT Governance – direct, measure and evaluate

the use of IT resources Leadership, commitment and support from top

level are necessary for effective governance Val IT supports the leadership by providing;

Effective processes Clear understanding of executive, business

and IT roles and responsibilities Relative information and organizational

structures



• COBIT – IT governance framework and supporting toolset

• Values of COBIT;– Allows managers to bridge the gap between

control requirements, technical issues and business risks

– Enables clear policy development and good practices

– Helps organizations to increase the value attained from IT

– Ensures effectiveness of IT in technology investments

Background of Val IT cont.…



Objectives of Val IT

Increase the probability of picking winners Increase the likelihood of IT investment success Reduce surprises from IT cost and delivery date

overruns Reduce costs due to inefficient investments



The Need of Val IT

• IT investments are not supporting the business strategy or providing expected value.

• There are too many projects, resulting in efficient use of recourses.

• Projects often delayed, run over budget, and/or don not provide the needed benefits.

• It needs to ensure compliance to industry or governmental regulations.



Concept of Value

Total life-cycle benefits net of related costs, adjusted for risk and for the time value of money

The nature of value differs for different types of enterprises

Relies on the relationship between meeting the expectations of many different stakeholders and the resources used



Concept of Value Contd.• The aim of value management is to:

– Reconcile the different views (what represent value)hold by stakeholders.

– Enabling an enterprise to:• Clearly define and communicate its view of what

constitutes value, and to whom• Select and execute investments• Manage its assets and optimize value with an

affordable use of resources and an acceptable level of risk



IT-enabled investments will ,

1. Be managed as a portfolio of investments.

2. Include the full scope of activities that are required to achieve business value.

3. Be managed through their full economic life cycle.

Seven Principles of Val IT



Seven Principles of Val IT Contd.

Value delivery practices will:4. Recognize different categories of investments to be

evaluated and managed differently5. Define and monitor key metrics and respond quickly

to any changes or deviations6. Engage all stakeholders and assign appropriate

accountability for delivery of capabilities and realization of business benefits

7. Be continually monitored, evaluated and improved



Value Governance (VG)

Investment Management (IM)

Portfolio Management (PM)

Major Processes of Val IT



Value Governance (VG)The goal of value governance is to optimize the value of an organization’s IT-enabled investments by:

1. Establish informed and committed leadership.2. Define and implement processes.3. Define portfolio characteristics.4. Align and integrate value management with

enterprise financial planning.5. Establish effective governance monitoring.6. Continuously improve value management

practices.



Portfolio Management (PM)The goal of portfolio management is to ensure that an organization’s overall portfolio of IT-enabled investments is aligned with and contributing optimal value to the organization’s strategic objectives by:

1. Establish strategic direction and target investment mix.

2. Determine the availability and sources of funds.3. Manage the availability of human resources.4. Evaluate and select programmes to fund.5. Monitor and report on investment portfolio

performance.6. Optimise portfolio performance.



Investment Management (IM)

The goal of investment management is to ensure that an organisation’s individual IT-enabled investment programmes deliver optimal value at an affordable cost with a known and acceptable level of risk

Three key components of investment management:• Business case development

Supporting selection of the right investment programmes• Programme management

Managing execution of the programmes• Benefits realization

Actively managing the realisation of benefits from the programmes



Relationship between Val IT Domains & Processes



Value delivery practices will

4. Recognize that there are different categories of investments that will be evaluated and managed differently.

5. Define and monitor key metrics and will respond quickly to any changes or deviations.

6. Engage all stakeholders and assign appropriate accountability for the delivery of capabilities and the realization of business benefits.

7. Be continually monitored, evaluated and improved.

Seven Principles of Val IT Contd.



Benefits of Val IT

Increase ROI(Return On Investments) in projects

Generate business value Manage IT enabled business investments Support business growth by increasing value of

technology investments Reduce cost resulting from inefficient

investments Better decision making, such as where to invest

in business change



Police Case StudyBy

IT Governance Institute

Source: http://www.isaca.org/Knowledge-Center/Val-IT-IT-Value-Delivery-/Documents/Value-Governance-Police-Case-Study.pdf



What is value to the Police?

• As government agency, business value is NOT about financial return on investment (ROI)

• It is about:– Contribution to strategic outcomes (e.g.,

reduced opportunity to commit crime, improved resolution of crime, safer driver behavior, improved community safety)

– Streamlining business processes (i.e., taking police officers away from administrative tasks and getting them back to the front line)

– Systems not failing in critical situations (e.g., aging infrastructure replaced, unsupportable applications replaced)





Police Strategic Plan cont.

Sequence contributions would not happen by itself. Required other complementary initiatives to effect improvements. i.e.: implementation of the crime management system made

a major contribution to “Better Intelligence”, however, turning this contribution to “Improved Investigative Quality” required further initiatives such as training the investigators in best practice use of the intelligence.

Each implemented project also contained the necessary complementary initiatives required to achieve the benefits of the investment. This included making changes in management initiatives required for users, supervisors and managers to adopt system.





Value Governance Life Cycle



The cycle is split into three parts:

Pre-project—Where ideas are received, assessed and qualified. If the idea is approved, it goes into the program schedule, assuming there is an availability of resources and funds.

Project—Where a project team will design, build and implement the system. This may include necessary changes within management and the initiatives that are required to achieve the business outcomes

Post-project—Where the benefits are realized, and a comparison of the benefits achieved against the business case is performed

The life cycle is characterized by five ‘stage gates’, at which the investment is scrutinized and rescrutinized by the value governance body. At the final gate all information is presented to the governance body for feedback, forwarding to the government, and lessons learnt for future projects.



Business Case Approval

• In between Gate 1 and Gate 2 there is a very important

– Business Case Assessment: This assessment involves scoring the project from 0-5 according to its benefits, cost and risk.

• Benefits are viewed as a positive contribution of the project to Police strategic outcomes

• Risks are viewed as – risk of technology (new technology? Dependable?)– Risk on not delivering the project– Risk of not delivering the benefits



Benefits Realized Tracked

• Key to realizing benefits is active management of the post implementation phase. This involved the Police setting up a number of business system owners ( groups of senior officers) who took full responsibility for achieving the benefits. The members track progress using the graph above.



Results

• Still early to fully realize benefits of the projects.• Early projects simply laid down infrastructure• Positive results have been noted:

– Appreciable time and effort savings- equal to 89 staff– Better targeted patrolling, leading to more crimes prevented– Better quality court briefs, leading to more successful prosecutions– More property returned to its rightful owner– More timely information for officers-in-charge– More crimes solved and perpetrators dealt with (crime rates dropped)



Conclusion• A new Police culture has been created that respects the

business value of the new system

• Project selection is objective and aligned to agency

strategy

• Relevant affected area of business is accountable for

the delivery of benefits

• Real value to the Police of the new IT system is about

doing things better with fewer staff.




Introduction to Val IT

Law

powerpoint templates

business value

value management practices

aim of value management

optimal value

nature of value

expected value

goal of value governance