This Powerpoint presentation discusses value management in IT investments (Val IT) and its application to a case study of the police force. It introduces Val IT and its objectives to increase investment success and reduce costs. It outlines the seven principles, major processes, and concept of value in Val IT. The presentation then details a case study of the police force applying Val IT through establishing governance, tracking metrics and benefits, and continually evaluating investments against strategic goals. Overall, Val IT helped the police better align IT projects to priorities, account for benefits realization, and improve operations with reduced staff.

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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

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• Waruna Kodituwakku
• Shanika Udeshini
• Dasitha Wijesundara
• Aloka Weerasooriya
• Harshani Wickramarachchi
Group Members
University of Colombo School of Computing

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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

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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

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• 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.…

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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

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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.

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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

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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

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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

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Seven Principles of Val IT Contd.
Value delivery practices will:
4. Recognize different categories of investments to be
evaluated and managed differently
5. Define and monitor key metrics and respond quickly
to any changes or deviations
6. Engage all stakeholders and assign appropriate
accountability for delivery of capabilities and
realization of business benefits
7. Be continually monitored, evaluated and improved

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Value
Governance
(VG)
Investment
Management
(IM)
Portfolio
Management
(PM)
Major Processes of Val IT

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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.

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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.

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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

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Relationship between Val
IT Domains & Processes

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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.

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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

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

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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)

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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.

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Value Governance Life Cycle

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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.

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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

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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.

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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)

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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.

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