Measuring the Value of IT - Val IT

"Val IT" is the 3rd in the series of four metrics for measuring the business value of IT that I introduced in my posting of July 7, 2009.  The first two in the series were the "Business Value Index" and "Total Economic Impact" (TEI).  Val IT is a complementary framework to the COBIT IT governance framework (described in our book, "The Business Value of IT" and elsewhere). While Val IT does not require a simultaneous COBIT implementation, it is clearly a good IT valuation option for organizations which already have COBIT in place. Like TEI, Val IT started out focused on new IT investments.  Val IT is made up of three key processes which contain a total of 41 key management practices: 1. Value Governance (11 key management practices)

  • Governance, Monitoring & Control
  • Provision of strategic direction
  • Define investment portfolio characteristics

2. Portfolio Management (15 key management practices)

  • Identify and maintain resource profiles
  • Define investment thresholds
  • Evaluate, prioritize, select, defer or reject investments
  • Manage the overall profile
  • Monitor and report on portfolio performance

3. Investment Management (15 key management practices)

  • Identify business requirements
  • Develop clear understanding of candidate investment programs
  • Analyze alternatives
  • Definition and documentation of business case including benefits
  • Assign accountability and ownership
  • Manage through the economic life cycle
  • Monitor and report on performance
Written by Michael D. Harris at 17:36

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"It's frustrating that there are so many failed software projects when I know from personal experience that it's possible to do so much better - and we can help." 
- Mike Harris, DCG Owner

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