should consider established IT value management
frameworks, such as Val IT.
Val IT is a framework for IT value management that was
developed by ISACA’s IT Governance Institute. It is an
extension of its CobiT (control objectives for information
and related technology) framework. While CobiT focuses on
IT management execution, Val IT focuses on governance to
optimize business value from IT.
CobiT is widely used to assess IT controls as part of Sarbanes-Oxley and other compliance or enterprise-risk-management
initiatives. These efforts can now be leveraged and extended
to include Val IT. Val IT can also be used by those with no
experience with CobiT.
Val IT guides the implementation of three critical IT decision-making functions: value governance, portfolio management,
and investment management. These functions help
organizations prioritize their IT investments; understand
costs, benefits, and risks; and capture return on investment.
Value Governance – This refers to the implementation
of the overall enterprise governance policy. It consists
of defining the organization’s IT investment leadership
and governance processes: roles, responsibilities, and
accountabilities, as well as principles and processes for IT
decision-making and monitoring.
Portfolio Management – This refers to the definition and
monitoring of an organization’s portfolio of IT programs. It
includes prioritization based on relative value contributions
(benefits vs. costs and risks), and how they tie to the
achievement of business objectives.
■ An IT portfolio can be created using a standard report