Itrm Standard Cpm 516-02 Publication - Virginia Information Technologies Agency Page 18
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38Information Technology Investment Management Standard
ITRM Standard CPM 516-02
January 31, 2017
5. MEASURING IT INVESTMENT VALUE
5.1 Purpose
This Section defines the value and risk of an IT investment, and describes the use of
value and risk to make IT investment decisions.
5.2 What is value?
Value is a measure that demonstrates how an IT investment contributes to improved
constituent service levels, agency operational efficiencies, and the strategic goals of
the commonwealth. IT investments may have multiple value measures in one, two,
or all three value categories. In turn, a value measure may apply to more than one
category.
The commonwealth uses the measurement of an IT investment’s value as a way to
quantify agency business benefits and track them throughout the IT investment
lifecycle. Measuring IT investment value with a focused, standardized set of
evaluation criteria allows the commonwealth to forecast value during investment
business case development and investment selection.
5.2.1 Constituent Service
Constituent service is the measure of how well an IT investment helps the citizens of
the commonwealth. This can include offering financial benefits such as lower cost of
interaction, reduced fees, or quicker reimbursements.
It can also include service
improvements such as reduced wait times, improved access, new services leading to
constituent benefits, or a greater focus on constituent needs.
5.2.2 Operational Efficiency
Operational efficiency is the measure of an IT investment’s capability to reduce
agency operational and inventory costs, or provide other financial benefits such as
streamlined supply chains, new revenue streams, higher productivity, error
reductions, faster merging of administrative processes, or an improvement in agency
performance against Department of Planning and Budget (DPB) Productivity
Measures.
5.2.3 Strategic Alignment
Strategic alignment is the measure of an IT investment’s support for commonwealth
goals and objectives as expressed in the individual agency strategic plans, the
Commonwealth Strategic Plan for Information Technology, the Governor’s Initiatives,
federal and state mandates, and the commonwealth’s Enterprise Architecture. It also
includes the applicability of the investment across the enterprise.
Page 13
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