Val IT is a governance framework

Framework

Framework may refer to:*Software framework, a reusable set of libraries or classes for a software system .**Application framework, a software framework used to implement the standard structure of an application for a specific operating system....

 that can be used to create business value from IT investments. It consists of a set of guiding principles and a number of processes and best practices that are further defined as a set of key management practices to support and help executive management and boards at an enterprise level. The latest release of the framework, published by IT Governance Institute (ITGI), based on the experience of global practitioners and academics, practices and methodologies was named Enterprise Value: Governance of IT Investments, The Val IT Framework 2.0. It covers processes and key management practices for three specific domains and goes beyond new investments to include IT services, assets, other resources and principles and processes for IT portfolio management

IT portfolio management

IT portfolio management is the application of systematic management to large classes of items managed by enterprise Information Technology capabilities. Examples of IT portfolios would be planned initiatives, projects, and ongoing IT services...

.

Overview

Val IT allows business managers to get business value from IT investments, by providing a governance framework that consists of

• a set of guiding principles, and
• a number of processes conforming to those principles that are further defined as a set of key management practices.

The major domains are:

• Value Governance (VG prefix)
• Portfolio Management (PM prefix)
• Investment Management (IM prefix)

Currently (as of 2006) a relatively short body of work, it will evolve and expand over time, with documents available for download via the Val IT Page at ISACA, and include:

• the framework itself;
• a template/guide to using Val IT when developing a business case;
• a case study; and
• FAQ

Relationship to COBIT

Val IT is tightly integrated with COBIT

COBIT

COBIT is a framework created by ISACA for information technology management and IT Governance. It is a supporting toolset that allows managers to bridge the gap between control requirements, technical issues and business risks.-Overview:...

 Version 4, also from the Information Systems Audit and Control Association

Information Systems Audit and Control Association

ISACA is an international professional association that deals with IT Governance. It is an affiliate member of IFAC. Previously known as the Information Systems Audit and Control Association, ISACA now goes by its acronym only, to reflect the broad range of IT governance professionals it...

 (a.k.a. ISACA). The Framework document explains the difference between COBIT and Val IT as follows:

Val IT extends and complements COBIT, which provides a comprehensive control framework for IT governance. Specifically, Val IT focuses on the investment decision (are we doing the right things?) and the realisation of benefits (are we getting the benefits?), while COBIT focuses on the execution (are we doing them the right way, and are we getting them done well?)

Relationship to VMM

Value Measuring Methodology

Value Measuring Methodology

Value measuring methodology is a tool that helps planners balance both tangible and intangible values when making investment decisions, and monitor benefits....

 (VMM), which has the motto "it's not just about ROI any more", provides more specific guidance than Val IT about:

• the different types of value (tangible and intangible) that can be considered; and
• how to compare the "apples" (tangibles) with "oranges" (intangibles) from individual projects to help maintain balance.

Principles

• IT-enabled investments will be managed as a portfolio of investments.
• IT-enabled investments will include the full scope of activities that are required to achieve business value.
• IT-enabled investments will be managed through their full economic life cycle.
• Value delivery practices will recognize that there are different categories of investments that will be evaluated and managed differently.
• Value delivery practices will define and monitor key metrics and will respond quickly to any changes or deviations.
• Value delivery practices will engage all stakeholders and assign appropriate accountability for the delivery of capabilities and the realization of business benefits.
• Value delivery practices will be continually monitored, evaluated and improved.

Major Processes

Each of the following major processes/activities have a responsibility assignment (RACI) matrix

Responsibility assignment matrix

A responsibility assignment matrix , also known as RACI matrix or Linear Responsibility Chart , describes the participation by various roles in completing tasks or deliverables for a project or business process...

, indicating the responsibilities of the senior executives, business managers, and information managers, along with the major and minor COBIT

COBIT

COBIT is a framework created by ISACA for information technology management and IT Governance. It is a supporting toolset that allows managers to bridge the gap between control requirements, technical issues and business risks.-Overview:...

 control objectives associated with the activity.

Value Governance

• VG1: Establish informed and committed leadership.
• VG2: Define and implement processes.
• VG3: Define portfolio characteristics.
• VG4: Align and integrate value management with enterprise financial planning.
• VG5: Establish effective governance monitoring.
• VG6: Continuously improve value management practices.

Portfolio Management

• PM1: Establish strategic direction and target investment mix.
• PM2: Determine the availability and sources of funds.
• PM3: Manage the availability of human resources.
• PM4: Evaluate and select programmes to fund.
• PM5: Monitor and report on investment portfolio performance.
• PM6: Optimise portfolio performance.

Investment Management

• IM1: Develop and evaluate the initial programme concept business case.
• IM2: Understand the candidate programme and implementation options.
• IM3: Develop the programme plan.
• IM4: Develop full life-cycle costs and benefits.
• IM5: Develop the detailed candidate programme business case.
• IM6: Launch and manage the programme.
• IM7: Update operational IT portfolios.
• IM8: Update the business case.
• IM9: Monitor and report on the programme.
• IM10: Retire the programme.

Use with other management domains

As with COBIT

COBIT

COBIT is a framework created by ISACA for information technology management and IT Governance. It is a supporting toolset that allows managers to bridge the gap between control requirements, technical issues and business risks.-Overview:...

, Val IT can be adapted for use with many other domains that are yet to develop an engineering perspective, by either removing the phrases "Information Technology" and "IT-enabled", or replacing them with the name of your domain of interest (e.g. "Marketing"), and then "season to taste".

See also

• Information Systems Audit and Control Association
  Information Systems Audit and Control Association
  ISACA is an international professional association that deals with IT Governance. It is an affiliate member of IFAC. Previously known as the Information Systems Audit and Control Association, ISACA now goes by its acronym only, to reflect the broad range of IT governance professionals it...
  
   (ISACA) - Custodians of Val IT
• IT Governance
• IT Portfolio Management
  IT portfolio management
  IT portfolio management is the application of systematic management to large classes of items managed by enterprise Information Technology capabilities. Examples of IT portfolios would be planned initiatives, projects, and ongoing IT services...
  
  
• COBIT
  COBIT
  COBIT is a framework created by ISACA for information technology management and IT Governance. It is a supporting toolset that allows managers to bridge the gap between control requirements, technical issues and business risks.-Overview:...
  
  
• Risk management
  Risk management
  Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
  
  
• Earned value management
  Earned value management
  Earned value management is a project management technique for measuring project performance and progress in an objective manner. EVM has the ability to combine measurements of scope, schedule, and cost in a single integrated system. Earned Value Management is notable for its ability to provide...
  
  
• Value networks
• Value network analysis
  Value network analysis
  Value network analysis is a methodology for understanding, using, visualizing, optimizing internal and external value networks and complex economic ecosystems. The methods include visualizing sets of relationships from a dynamic whole systems perspective...
  
  
• Value theory
  Value theory
  Value theory encompasses a range of approaches to understanding how, why and to what degree people should value things; whether the thing is a person, idea, object, or anything else. This investigation began in ancient philosophy, where it is called axiology or ethics. Early philosophical...
  
  
• Value Measuring Methodology
  Value Measuring Methodology
  Value measuring methodology is a tool that helps planners balance both tangible and intangible values when making investment decisions, and monitor benefits....
  
  - assessment of value from individual inititiatives