Matakuliah : A0774/Information Technology Capital
Budgeting
Tahun
: 2009
Select Phase
Pertemuan 19-20
Select Phase Overview
• A major IT project starts once it is determined that an IT
investment is needed.
• A new IT investment may be necessary when it is
decided that IT should be used to meet a business need,
or if an existing system must be upgraded and that
upgrade constitutes a large expenditure.
Select Phase Overview
• The select phase of the IT investment management
process determines priorities and makes decisions about
which projects will be funded during the year.
Select Phase Overview
• The goal of the Select Phase is to ensure that the
Department’s IT investment portfolio is comprised on the
appropriate range of investments that will best support
its mission and strategic goals.
Select Phase Overview
• The department has an IT portfolio whose composition
changes as investments are
– Modified
– added to, or
– deleted from the portfolio.
Select Phase Overview
• An analysis of the existing portfolio of IT investments
helps to ensure that senior managers are informed of
– current costs
– Benefits
– risks associated with the existing portfolio.
For each investment, must consider:
• How the initiative and portfolio reflect the Department’s
strategic goals, objectives and priorities
• A description of the initiative, the benefits if funding is
provided, an the funding requested for development;
equipment and maintenance for the entire life cycle of
the investment
• How the investment supports strategic goals and
objectives
For each investment, must consider:
•
•
•
•
•
•
How the investment resolves findings and weaknesses
An alternatives analysis, including a cost benefit analysis with risk adjusted
ROI and net present value (NPV) results
Initial project plan with estimated costs listed for each work package within
the work breakdown structure (WBS)
Performance measures that are tied to Budget’s Performance Reference
Model (PRM)
How Risk will be managed and security and privacy controls implemented
and
How the investment conforms to the Enterprise Architecture and other
related information.
IT Investment Screening
• Which projects being submitted for funding are compared against a
uniform set of screening criteria and thresholds in order to
– determine whether the projects meet minimal requirements
– to identify at what organizational level the projects should be reviewed.
• The costs, benefits and risks of all IT projects whether proposed,
under development, or operational are then assessed and the
projects are compared against each other and ranked or prioritized.
IT Investment Screening
• Site IT program managers review individual IT
investment business cases and select investments for a
proposed site portfolio to ensure
– that missions and goals are effectively and efficiently supported
by the proposed portfolio
– that the proposal is consistent with the site IT architecture.
IT Investment Scoring
•
•
Following proposed investment submission and reviews consistent with
criteria established and promulgated.
It is reviewed for quality and content criteria applicable to support of
–
–
–
–
–
–
–
–
–
The management agenda
Acquisition strategy
Project management
Enterprise architecture
Alternatives analysis
Risk management
Performance goals
Security
Use of performance based management system and privacy.
IT Investment Selection
• Information gathered and analyzed during the screening
and scoring stages of the select process.
• The CIO analyzes and compares initiatives within and
across the available IT investment opportunities.
IT Investment Selection
The analyses take into
• Account the relative operational
• Technical
• Financial
• Institutional strengths and weaknesses of each initiative.
IT Investment Selection
• The department's goal is to maintain a balanced IT
investment portfolio that ensures for any given
investment, the best return to department mission and
functions is obtained.
• The CIO submits this analysis with budget
recommendations and a list of “at-risk: investments.