The core elements of Val IT are the value management principles to be applied, the management processes involved and the key management practices to be considered for obtaining value from IT investments. This article addresses the seven Val IT principles.
- IT-enabled investments need to be managed as a portfolio of investments. An active managed portfolio shows an overview of all types of investments, and the associated set of activities, projects and resources. Such an overview is absolutely vital to make the appropriate and efficient investments decisions.
- IT-enabled investments must include the full scope of activities that are required to achieve business value. All actions required to achieve value for the business need to be part of the overall program plan and the business case. Much too often, the planning beyond the delivery of the technical measures goes not that far as it should. As a result, the full costs, risks and benefits of the initiatives are not properly calculated.
- IT-enabled investments require to be managed through their full economic life cycle. Planning to often solely focuses on the investment decision and nearby costs. Beside, long term costs, risks and benefits of the initiatives and required changes to business processes, organization and technology must be taken into account.
- Value delivery practices have to recognize that there are different categories of investments. These categories must be assessed and managed differently. This is a must because the characteristics of the involved categories differ and require as such different evaluation criteria and different levels of analysis.
- Value delivery practices need to define and monitor key metrics. This allows quick reaction to serious changes and deviations. Key performance indicators are a must for actively managed investments / projects.
- Value delivery practices must engage all stakeholders and assign appropriate accountability for the realization of business benefits. Identifying of all stakeholders in the planning and execution of the investment is required, and responsibility and accountability need to be clearly established.
- Value delivery practices have to be continually monitored, evaluated and improved. Continuous improvement is necessary to sustain the value management practices and processes over time.