Information Technology Investment Evaluation Guide

Introduction

This Web
Guide

Overview of the IT
Investment Management Process

The IT Investment Management Process

SELECT

CONTROL

EVALUATE

Processes

Selection processes
include:

screening new projects

analyzing and ranking all projects based on benefit, cost, and
risk criteria

selecting a portfolio of projects

establishing project review schedules

Control processes
include:

consistently monitoring projects

involving the right people

documenting all actions and decisions

feeding lessons learned back in to the Selection
phase

Evaluation processes
include:

conducting post-implementation reviews (PIRs) using a standard
methodology

feeding lessons learned back in to the Selection and Control
phases

Data

Selection data
include:

evidence that each project has met project submission
requirements

analyses of each project's costs, benefits, and risks

data on the existing portfolio

scoring and prioritization outcomes

project review schedules

Control data
include:

measures of interim results

updated analyses of each project's costs, benefits, schedule,
and risks

Evaluation data
include:

measurements of actual vs. projected performance

documented "track record" (project and
process)

Decisions

Selection decisions
include:

determining whether projects met process-stipulated
requirements

deciding upon the mixture of projects in the overall IT
investment portfolio

Control decisions
include:

deciding whether to cancel, modify, continue, or accelerate a
project

aggregating data and reviewing collective actions taken to
date

Evaluation decisions
include:

assessing project's impact on mission performance and
determining future prospects for the project

revising the Selection and Control phases based on lessons
learned

Three Critical
Factors

Related Legislation
and Executive Branch Guidance

Evaluation
Questions

Potential
Information Sources

Example of Reporting
Structure

Bibliography and
Reference Sources

Glossary of IT
Investment Terms

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Pagemaster: John P.
Rehberger, Updated 2/25/98