Select Phase Pertemuan Matakuliah: A0774/Information Technology Capital Budgeting Tahun: 2009

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.