All of these notes are a summary of the IT Investment Governance content in the INF3012S course slides and readers combined.
Important sections that are always asked in tests and exams are marked red with “NB” next to it. The notes also have past exam and test questions at the bottom for co...
→ Area of IT that is concerned with value and resource management of IT.
→ How do we make decisions on what to spend IT money on and how do we ensure that IT delivers value.
→ How do they decide what they spend their money on for IT?
The two parts to governance:
Part 1: How does the organisation go through the investment process
Part 2: Ensuring value and how this value is measured. This is part of cost benefit analysis. They do BCs and
have finance people to manage this. Have dashboards to monitor.
→ Business and IT make the decisions together
Information Economics
The process for IT Investment
The process of IT spend decisions using Information Economics:
1. Briefly describe the industry (e.g. finance, retail, etc.)
2. Briefly describe the organisation
3. Establish the organisation’s evaluation criteria
4. Scan for contenders
5. Identify a short list
6. Select the best alternative
7. Recommend
Kinds of IT investments: What consultants will you employ, what software / hardware will you buy.
Step 3: Unpacking how to Establish the organisation’s evaluation criteria (step 3 of
process for IT Investment)
NB!!:
→ Has to do with what you are about to spend money on: HARDWARE, SOFTWARE OR SERVICES.
→ Criteria must, at minimum, cover cost, risk and benefit factors & an assessment of how well the project meets
needs.
→ Decide which of these criteria are the most NB.
Only once we have defined the criteria, THEN we look for contenders.
Examples of evaluation criteria: customer adoption rate, maturity of cloud solutions, flexibility & scalability of
solutions, ROI etc.
IT Investment Governance 1
, Use: weightings (5 = high, 1 = low) to rank importance of each criteria in a table.
Step 6: Select Best Alternative
Types of Criteria:
1. General Criteria: costs, vendor record, staff required, benefits expected, time, impact on organisation,
additional requirements, training
2. Functional Criteria: Inputs, outputs, queries, calculations, management information, interfaces, legal
compliance, user approval etc. In terms of ERP this is business process requirements.
IT Investment Governance 2
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