VAL IT Definition
VAL IT (value from IT investments) is a framework for the governance of information technology enabled business investments. VAL IT Framework has been developed by the IT Governance Institute (ISACA).
The objective of Val IT Framework is to maximize the business value created from IT investments in an enterprise using governance best practices. Toward that end, it defines three major domains, seven guiding principles, a set of processes, and management practices to support and help executive management and boards at an enterprise level in making better decisions about IT investments.
VAL IT Framework Overview
Source: America Pink 1
VAL IT Framework Current Version
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. 2
VAL IT Domains»
Val IT is a complete framework covering three major domains namely, value governance, portfolio management and investment management processes and activities.
The Seven Principles of Val IT
IT-enabled investments will:
- Be managed as a portfolio of investments
- Include the full scope of activities required to achieve business value
- Be managed through their full economic life cycle
Value delivery practices will:
- Recognize different categories of investments to be evaluated and managed differently
- Define and monitor key metrics and respond quickly to any changes or deviations
- Engage all stakeholders and assign appropriate accountability for delivery of capabilities and realization of business benefits
- Be continually monitored, evaluated and improved
VAL IT Framework Principles
Source: America Pink 3
What does Val IT do?
- Fosters the partnership between IT and the rest of the business
- Assists the board and executive management in understanding and carrying out their roles related to IT-enabled business investment
- Helps enterprises make better decisions on where to invest in business change
- Provides a common language for executives, business management and IT professionals to ensure IT-related investments are in line with business strategy
What are the benefits of adopting and using Val IT?»
- Increased ROI for projects
- Business value is generated
- IT-enabled business investments are managed through their full life cycle
- Increased value of technology investments, leading to business growth
- Reduced costs resulting from inefficient investments
- Better decisions are made on where to invest in business change
Val IT Major Processes
Val IT has the following major processes for its three major domains. Each of these processes has a RACI (responsibility assignment) matrix, indicating the responsibilities of the senior executives, business managers, and information managers, along with the major and minor COBIT control objectives associated with the activity.
- 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.
- 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 programs to fund.
- PM5: Monitor and report on investment portfolio performance.
- PM6: Optimize portfolio performance.
- IM1: Develop and evaluate the initial program concept business case.
- IM2: Understand the candidate program and implementation options.
- IM3: Develop the program plan.
- IM4: Develop full life-cycle costs and benefits.
- IM5: Develop the detailed candidate program business case.
- IM6: Launch and manage the program
- IM7: Update operational IT portfolios.
- IM8: Update the business case.
- IM9: Monitor and report on the programm
- IM10: Retire the program
VAL IT Framework Processes
Source: America Pink 4
Val IT and COBIT»
Val IT is closely aligned with and complements COBIT. Val IT focuses on the investment decision (are we doing the right things?) and the realization 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?)
- Val IT helps enterprises make better decisions about where to invest, ensuring that the investment is consistent with the business strategy
- COBIT ensures that IT is working as effectively as possible to maximize the benefits of technology investment
See AlsoIT GovernanceIT Governance FrameworkICT Investment FrameworkInformation Technology Investment Management (ITIM)
External ReferencesISACA Val IT FAQISACA Val IT Home Page
CIO Desk Reference
(Relevant content on this topic in the CIO Toolkit on CIO Index)