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1 2009 ISACA All rights reserved. Unlocking the Value of Technology Investments Speaker Name/Title Date.

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Presentation on theme: "1 2009 ISACA All rights reserved. Unlocking the Value of Technology Investments Speaker Name/Title Date."— Presentation transcript:

1 ISACA All rights reserved. Unlocking the Value of Technology Investments Speaker Name/Title Date

2 2009 ISACA All rights reserved. 2 The Importance of Reliable Investment Yet more than 2 out of 10 enterprise IT projects are outright failures. * You would not buy a car that failed to start 20 percent of the time. You would not invest in a mutual fund that consistently lost 20 percent of its value. *The Standish Group, 2006

3 2009 ISACA All rights reserved. 3 IT Investments Bring Both Value and Risk IT investments are about enabling business change and can bring enormous returns if managed properly Yet, without effective governance and good management, there is an equally significant risk to destroy value The concept of value relies on the relationship between meeting the expectations of many differing stakeholders and the resources used in doing so. The aim of value management is to reconcile these differences … John Thorp, CMC, I.S.P. Val IT researcher and developer and author, The Information Paradox [as adapted from the Institute of Value Management]

4 2009 ISACA All rights reserved. 4 A New Approach is Needed Managing IT-enabled change requires that IT investments be managed One approach is to apply the principles of financial portfolio management to evaluating, selecting and managing IT investments over their full economic life cycle A Massachusetts Institute of Technology (MIT) (USA) study of more than 300 enterprises in 23 countries found that faster-growing and more agile firms such as 7-11 Japan, United Parcel Service (UPS) and ING Direct all had a portfolio approach to IT management …

5 2009 ISACA All rights reserved. 5 Val IT Val IT Proven practices and techniques for evaluating and managing investment in business change and innovation Val IT helps executives: – 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

6 2009 ISACA All rights reserved. 6 Developed by the Leaders in IT Governance Created by ISACA, Fujitsu Consulting, ING and SeaQuation Professional association with 86,000 constituents. Worldwide leader in IT governance, control, security and assurance. Offers the CISA, CISM and CGEIT certifications.

7 2009 ISACA All rights reserved. 7 Why Val IT ? An organisation needs stronger governance over IT investments if: IT investments are not supporting the business strategy or providing expected value There are too many projects, resulting in inefficient use of resources Projects often are delayed, run over budget, and/or do not provide the needed benefits There is an inability to cancel projects when necessary It needs to ensure compliance to industry or governmental regulations

8 2009 ISACA All rights reserved. 8 The strategic question The architecture question The value question The delivery question A Comprehensive Approach Many enterprises practice elements of Val IT already Val IT provides a consistent, repeatable and comprehensive approach IT and business become equal shareholders because Val IT helps management to answer these key questions:* * Based on the Four Ares as described by John Thorp in his book The Information Paradox, written jointly with Fujitsu, first published in 1998 and revised in 2003

9 2009 ISACA All rights reserved. 9 The Seven Principles of Val IT The Seven Principles of Val IT IT-enabled investments will: 1.Be managed as a portfolio of investments 2.Include the full scope of activities required to achieve business value 3.Be managed through their full economic life cycle Value delivery practices will: 4.Recognise 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 realisation of business benefits 7.Be continually monitored, evaluated and improved

10 2009 ISACA All rights reserved. 10 How Val IT Works Establish informed and committed leadership. Align and integrate value management with enterprise financial planning. Define and implement processes. Establish effective governance monitoring. Define portfolio characteristics. Continuously improve value management practices. Establish strategic direction and target investment mix. Evaluate and select programmes to fund. Determine the availability and sources of funds. Monitor and report on investment portfolio performance. Manage the availability of human resources. Optimise investment portfolio performance. Understand the candidate programme and implementation options. Develop the detailed candidate programme business case. Develop the programme plan. Launch and manage the programme. Develop full life cycle costs and benefits. Update operational IT portfolios. Develop and evaluate the initial programme concept business case. Update the business case. Monitor and report on the programme. Retire the programme. Value Governance (VG) Portfolio Management (PM) Investment Management (IM)

11 2009 ISACA All rights reserved. 11 Top Organisations Support Val IT Top Organisations Support Val IT For more information, please visit - Craig Symons, Vice President, Principal Analyst Forrester Research in the Report From IT Governance to Value Delivery 22 June 2007 Organisations struggling to execute IT strategies that deliver business value and to communicate this value to stakeholders should evaluate Val IT as a tool for improved value delivery.

12 2009 ISACA All rights reserved. 12 Getting Started Visit to learn more or download a free copy of the Val IT framework, Getting Started With Value Management and The Business Case.


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