itim standard

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Commonwealth

of

Virginia

InformationTechnology

Resource

Management

Standard

for

INFORMATIONTECHNOLOGY

INVESTMENTMANAGEMENT

VirginiaInformationTechnologiesAgency


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InformationTechnologyInvestmentManagementStandard ITRMStandardCPM51600

September30,2008

1

Preface

PublicationDesignation

Commonwealth of Virginia (COV) Information

Technology Resource Management (ITRM) Standard

CPM51600

Subject

InformationTechnologyInvestmentManagement

EffectiveDate

September30,2008

Supersedes

None

Scheduled

VITA

Review

One (1)year from the effective date, thenevery two

yearsthereafter.

Authority

CodeofVirginia,2.22007

(PowersanddutiesoftheCIO)


(AdditionalpowersofVITA)


(Powers

and

duties

of

the

VITA

Division

of

Project

Management)


(Submission of information technology plans by state

agencies and public institutions of higher education;

designationoftechnologyresource.)


(AuthorityofCIOtomodifyorsuspendmajorinformation

technologyprojects;projecttermination)

Code of Virginia, 2.22018; 2.22019; 2.22020; 2.2

2021

(Project Planning approval; Project Development

Approval; Procurement approval for major information

technologyprojects;Projectoversight)

CodeofVirginia,2.22457;2.22458

(Information Technology Investment Board; membership;

terms;quorum; compensation; staff;Powers and dutiesof

theBoard)

CodeofVirginia2.22651

(Council on Technology Services; purpose; membership;

chairman)

Scope

This Standard is applicable to all Executive Branch

state agencies and institutions of higher education

(hereinaftercollectivelyreferredtoas agencies)that

are

responsible

for

the

management,

development,

purchase and use of information technology

investments in theCommonwealthofVirginia. This

Standarddoesnotapplytoresearchprojects,research

initiatives or instructional programs at public

institutions of higher education. Local government

entitiesareencouragedtoconsidertheimplicationsof

thisstandardfortheirwork.

Purpose

To establish standards for the management of

information technology investments in theCommonwealthofVirginia(COV).


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2

General

Responsibilities

(ItalicsindicateCodeofVirginiarequirements)

TheInformation

Technology

Investment

Board

(Board)

The Information Technology Investment Board is

assigned the following general technology

managementresponsibilities:

Approve or disapprove the development of all

major informationtechnologyprojectsasdefined

in 2.22006. The Board may terminate any

major information technology project

recommended for termination by the Chief

InformationOfficer

pursuant

to

2.2

2015;

Approve strategies, standards, and priorities

recommended by the Chief Information Officer

for the use of information technology for state

agencies in the executive branch of state

government;

Approve the fouryear plan for information

technologyprojects;

Approve criteriafor the review and approval of

theplanning, scheduling and tracking of major

information technologyprojects as defined in

2.22006;

AppointtheChiefInformationOfficerasthechief

administrativeofficeroftheBoardtooverseetheoperationofVITApursuantto2.22005;

Approve statewide technical and data standards

forinformationtechnologyandrelatedsystems;

Approve statewide information technology

architectureandrelatedsetofsystemstandards;

Adoptresolutionsorregulationsconferringupon

the Chief Information Officer all such powers,

authorities and duties as the Board deems

necessaryorproper tocarryout thepurposesof

Chapter20ofTitle2.2;and,

Submit by September 1 of each year a list of

recommendedtechnologyinvestmentprojectsand

priorities for funding such projects to the

GovernorandtheGeneralAssembly.

ChiefInformationOfficer(CIO)

The Chief Information Officer is assigned the

following general technology management

responsibilities:

Monitor trends and advances in information

technology; develop a comprehensive, statewide,

fouryear strategic plan for information

technology to include specific projects that

implementtheplan;andplanfortheacquisition,

management,anduse of information technology

by state agencies. The statewideplan shall be

updatedannuallyandsubmittedtotheBoardfor

approval. Indevelopingandupdating theplan,

the CIO shall consider the advice and

recommendations of the Council on Technology

Servicescreatedpursuantto2.22651;

Direct the formulation and promulgation of

policies,guidelines,standards,andspecifications

for thepurchase, development,andmaintenance

of information technology for state agencies,

including,butnotlimitedto,those(i)requiredto

support

state

and

localgovernment

exchange,

acquisition, storage, use, sharing, and

distribution ofgeographicorbasemap dataand

related technologies, (ii) concerned with the

developmentofelectronic transactions including

theuseof electronic signaturesasprovided in

59.1496,and(iii)necessarytosupportaunified

approach to information technology across the

totality of state government, thereby assuring

that the citizens and businesses of the

Commonwealth receive the greatest possible

security, value, and convenience from

investmentsmadeintechnology;

Direct the development of policies andprocedures,inconsultationwiththeDepartment

ofPlanningandBudget,thatareintegratedinto

the Commonwealths strategic planning and

performance budgetingprocesses, and that state

agencies and public institutions of higher

educationshallfollow indeveloping information

technologyplans and technologyrelated budget

requests. Such policies and procedures shall

require consideration of the contribution of

currentandproposedtechnologyexpendituresto

the support of agency and institution priority

functional

activities,

as

well

as

current

and

future operating expenses, and shall be utilized

by all state agencies andpublic institutions of

highereducationinpreparingbudgetrequests;

Review budget requests for information

technology from state agencies and public

institutions of higher education and recommend

budgetpriorities to the Information Technology

InvestmentBoard.Thisreviewshallinclude,but


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3

not be limited to, all data processing or other

relatedprojectsforamounts exceeding$100,000

in which the agency or institution has entered

intoorplanstoenter intoacontract,agreement

or other financing agreement or such other

arrangement that requires that the

Commonwealth either pay for the contract by

foregoing revenue collections, or allows or

assigns toanotherparty the collectiononbehalf

oforfortheCommonwealthanyfees,charges,or

other assessments or revenues to pay for the

project. For each project, the agency or

institutionshallprovide theCIO (i)asummary

of the terms, (ii) the anticipated duration, and

(iii) the cost or charges to any user, whether a

state agency or institution or other party not

directlyapartytotheprojectarrangements. The

description

shall

also

include

any

terms

or

conditions that bind the Commonwealth or

restrict the Commonwealths operationsand the

methods ofprocurement employed to reach such

terms;

Directthedevelopmentofpoliciesandprocedures

for the effective management of information

technology investments throughout their entire

lifecycles, including, but not limited to,project

definition, procurement, development,

implementation, operation, performance

evaluation, and enhancement or retirement.

Suchpolicies andprocedures shall include, at a

minimum, the periodic review by the CIO ofagencyandpublicinstitutionofhighereducation

informationtechnologyprojectsestimatedtocost

$1 million or more or deemed to be mission

criticalorofstatewideapplicationbytheCIO;

Report annually to the Governor and theJoint

Commission on Technology and Science created

pursuantto3085ontheuseandapplicationof

information technology by state agencies and

publicinstitutionsofhighereducationtoincrease

economic efficiency, citizen convenience, and

publicaccesstostategovernment;

Directthe

development

of

policies

and

procedures

that require VITA to review information

technology projects proposed by state agencies

and institutions exceeding $100,000, and

recommendwhethersuchprojectsbeapprovedor

disapproved. TheCIO shalldisapproveprojects

between $100,000 and $1 million that do not

conform to the statewide informationplan or to

the individual plans of state agencies or

institutionsofhighereducation;and,

ApproveContractsandStatementsofWork

for IndependentVerificationandValidation

(IV&V)ofMajorITProjects.

VirginiaInformationTechnologiesAgency(VITA)

The Virginia Information Technologies Agency is

assigned the following general technology

managementresponsibilities:

Prescribe regulations necessary or incidental to

theperformanceofdutiesorexecutionofpowers

conferredundertheCodeofVirginia,2.22010;

Develop and adopt policies, standards, and

guidelinesfor managing information technology

bystateagencies; Develop and adopt policies, standards, and

guidelines for the procurement of information

technology and telecommunications goods and

servicesofeverydescriptionforstateagencies;

Direct the establishment of statewide standards

for the efficient exchange of electronic

information and technology, including

infrastructure, between the public and private

sectorsintheCommonwealth;

Direct the compilation and maintenance of an

inventory of information technology, including,

but

not

limited

to,

personnel,

facilities,

equipment,goods,andcontractsforservices;and,

Develop statewide technical and data standards

forinformationtechnologyandrelatedsystemsto

promoteefficiencyanduniformity.

TheProjectManagementDivision(PMD)ofVITA

TheProjectManagementDivision (PMD) isassigned

the following general technology management

responsibilities:

Implement the approvalprocessfor information

technologyprojectsdevelopedinaccordancewith

2.22008;

Assist the CIO in the development and

implementation of a project management

methodologytobeusedinthedevelopmentofand

implementation of information technology

projectsinaccordancewiththisarticle;


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4

Provide ongoingassistance and support to state


education in the development of information

technologyprojects;

Review information management and

information technology plans submitted by


education and recommend to the CIO the

approval of such plans and any amendments

thereto;

Monitor the implementation of information

management and information technology plans

andperiodicallyreportitsfindingstotheCIO;

AssignProjectManagementSpecialiststoreview

and recommend information technology

proposals based on criteria developed by the

Division based on the (i) degree to which the

project

is

consistent

with

the

Commonwealths

overall strategicplan; (ii) technicalfeasibility of

theproject;(iii)benefitstotheCommonwealthof

the project, including customer service

improvements; (iv) risks associated with the

project;(v)continuedfundingrequirements;and

(vi) past performance by the agency on other

projects;and,

Provide oversight for state agency information

technologyprojects;

ExecutiveBranch(Cabinet)Secretaries

Executive Branch (Cabinet) Secretaries are assigned

the following general technology management

responsibilities:

Make appropriate recommendations to the

CIO regarding COV enterprise technology

programs and projects, throughout the

programorprojectlifecycle,whichincludes

program or project initiation, planning,

execution, closeout, and operations and

support;

Review agency Major IT Projects and make

appropriate recommendations to the CIO,throughout the project lifecycle, which

includes the project initiation, planning,

execution, closeout, and operations and

supportphases;and,

Participate in Proponent Secretariat

Oversight Committees (PSOC) established

bytheCIOtoprovideoversightforMajorIT

Projects.

ExecutiveBranchStateAgencies

State agencies are assigned the following general

technologymanagementresponsibilities:

All state agencies and public institutions of

higher education shall prepare and submit

information technology plans to the CIO for

review and approval. All state agencies and

public institutions of higher education shall

maintain current information technologyplans

thathavebeenapprovedbytheCIO.

Theheadofeachstateagencyshalldesignatean

existingemployeetobetheagencysinformation

technology resource who shallbe responsiblefor

compliance with the procedures, policies, and

guidelinesestablishedbytheCIO;

Prior toproceeding with any major informationtechnologyproject,anagencyshallsubmittothe

Division(PMD)aprojectproposal,outliningthe

business need for the project, the proposed

technology solution, if known, and an

explanationofhowtheprojectwouldsupportthe

agencys business objectives and the

Commonwealths information technology plan.

TheProjectManagement Specialistmay require

the submission of additional information if

neededtoadequatelyreviewanysuchproposal;

UponapprovaloftheCIOoftheprojectplan,an

agency shall submit to the Division (PMD) a

project development proposal containing (i) a

detailed business case including a costbenefit

analysis; (ii) a business process analysis, if

applicable; (iii) system requirements, if known;

(iv) a proposed development plan and project

management structure; and (v) a proposed

resource or funding plan. The Project

Management Specialist may require the

submissionofadditionalinformationnecessaryto

meet the criteria developed by the Division

(PMD);

Upon approval of the Board of the project

development proposal involving a major

information technologyproject that requires the

procurementofgoodsorservices,theagencyshall

submitacopyofanyInvitationforBid(IFB)or

Request for Proposal (RFP) to the Division

(PMD). The Project Management Specialist

shallreview the IFBorRFPandrecommend its

approvalorrejectiontotheCIO. TheCIOshall

have thefinal authority to approve the IFB or


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5

RFPprior to its release and shall approve the

proposedcontractfortheawardoftheproject;

Wheneveranagencyhasreceivedapprovalfrom

the Board toproceed with the development and

acquisition of a major information technology

project, the CIO shall establish an internal

agencyoversightcommittee. Theinternalagency

oversight committee shall provide ongoing

oversightfortheprojectandhavetheauthorityto

approve or reject any changes in the projects

scope,schedule,orbudget. TheCIOshallensure

that the project has in place adequate project

management and oversight structures for

addressing major issues that could affect the

projects scope, schedule, or budget and shall

address issues that cannot be resolved by the

internalAgencyoversightcommittee;

Whenever

a

statewide

or

multiagency

project

has received approval from the Board, the

primaryprojectoversightshallbeconductedbya

committee composed of representatives from

agencies impactedby theproject, which shall be

establishedbytheCIO;

Comply with ITIBapproved policies and

standards, and consider ITIBapproved

guidelines for the management of

information technology resources in the

Commonwealth;

Plan and manage agency IT projects and

procurements throughout their lifecycles,

which includes the initiation, planning,execution, closeout, and operations and

supportphases;and,

Propose the initiation of Major IT Projects

and Procurements to the CIO. Manage

approved Major IT Projects, throughout the

project lifecycle, which includes project

initiation,planning,execution,closeout,and

operationsandsupportphases.

RelatedCOVITRMPolicies,Standards,

andGuidelines

EnterpriseArchitecturePolicy(EA20000);

ProjectManagementStandard(CPM11202);

TechnologyManagementGlossaryStandard

(GOV200302.3);and,

TechnologyManagementPolicy(GOV2002

02.1).


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6

ITRMPublicationVersionControl

It is the users responsibility to ensure they have the latest version of this ITRM

publication.Questions

should

be

directed

to

the

Supervisor

of

the

Management

Support

Office intheCommonwealthProjectManagementDivision (PMD).Whenrevisionsof

thispublicationhavebeenapprovedbytheInformationTechnologyInvestmentBoard

(ITIB), PMD will notify the Agency Information Technology Resources (AITRs) at all

stateagencies,aswellasotherpartiesPMDconsiderstobeinterestedinthechange.

ThistablecontainsahistoryofthisITRMpublicationsversions.

Version Date PurposeofRevision

Original

09/30/2008

Publication

of

ITIB

approved

original

document


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TableofContents

Preface.......................................................................................................................................................... 1

1. INTRODUCTION.............................................................................................................................. 10

1.1 DefinitionofInformationTechnologyInvestmentManagement..............................................10

1.2 PurposeoftheInformationTechnologyResourceManagementITIMStandard.................... 10

1.3 CommonwealthBusinessNeeds .................................................................................................... 10Figure1:DriversofCommonwealthBusinessNeeds........................................................................................11

1.4 TheITIMProcess............................................................................................................................... 11Figure2:TheITIMPhases ................................................................................................................................12

1.5 ITIMStakeholders............................................................................................................................. 121.5.1 InformationTechnologyInvestmentBoard(ITIB) ..................................................................................12

1.5.2 CommonwealthChiefInformationOfficer(CIO) ....................................................................................13

1.5.3 CommonwealthChiefApplicationsOfficer(CAO) .................................................................................13

1.5.4

CommonwealthProject

Management

Division

(PMD) ..........................................................................14

1.5.5 CommonwealthSecretariats.....................................................................................................................14

1.5.6 CommonwealthAgencies .........................................................................................................................15

1.5.7 CommonwealthPrograms........................................................................................................................15

1.6 CommonwealthStrategicPlanning................................................................................................ 151.6.1 TheCouncilonVirginiasFuture ............................................................................................................16

1.6.2 CommonwealthofVirginiaStrategicPlanforInformationTechnology .................................................16

1.6.3 CommonwealthEnterpriseArchitecture(EA).........................................................................................17

Figure3:EnterpriseArchitectureProcessModel..............................................................................................17

1.6.4 CommonwealthTechnologyPortfolio(CTP) ...........................................................................................18

1.6.5AgencyITStrategicPlan(ITSP).............................................................................................................18

1.6.6AgencyTechnologyPortfolio(ATP)........................................................................................................18

2. MEASURINGITINVESTMENTVALUE.................................................................................... 20

2.1 WhatisValue?................................................................................................................................... 202.1.1 ConstituentService..................................................................................................................................20

2.1.2 OperationalEfficiency..............................................................................................................................20

2.1.3 StrategicAlignment.................................................................................................................................20

2.2 UsingValueandRisktoMakeITInvestmentDecisions ............................................................ 21Figure4:ExampleITInvestorMapShowingValuevs.Risk............................................................................21

3. PORTFOLIOMANAGEMENT....................................................................................................... 22

3.1 WhatisPortfolioManagement?...................................................................................................... 22Figure5:ITIM,APM,andPPM.......................................................................................................................22

3.2

CommonwealthProject

Portfolio

Management

(PPM)............................................................... 22

Figure6:ThePPMLifecycle..............................................................................................................................23

3.2.1 ITInvestmentAnalysisandRanking ......................................................................................................23

3.2.2 SelectITPortfolio.....................................................................................................................................23

3.2.3 ControlOngoingProjects ........................................................................................................................24

3.2.4 CloseoutProjectandPrograms................................................................................................................24

3.3 CommonwealthAssetPortfolioManagement(APM)................................................................. 24Figure7:TheAPMLifecycle .............................................................................................................................25


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3.3.1 InfrastructureServicePortfolioManagement(ISPM)............................................................................25

Figure8:TheISPMLifecycle.............................................................................................................................25

3.3.1.1 MeasureInfrastructureServicesPerformance...........................................................................25

3.3.1.2 EvaluateInfrastructureServiceValue ........................................................................................26

3.3.1.3

DetermineDisposition

of

Current

Infrastructure .....................................................................26

3.3.1.4 IdentifyBusinessNeedforITInvestment..................................................................................26

3.3.2 SolutionsPortfolioManagement(SPM) .................................................................................................27

Figure9:TheSPMLifecycle..............................................................................................................................27

3.3.2.1 MeasureApplicationPerformance .............................................................................................27

3.3.2.2 EvaluateApplicationValue .........................................................................................................28

3.3.2.3 DetermineDispositionofCurrentApplications .......................................................................28

3.3.2.4 IdentifyBusinessNeedforITInvestment..................................................................................28

4. PHASESOFITIM..............................................................................................................................29

4.1 Preselect(Identify)Phase................................................................................................................ 294.1.1 Preselect(Identify)PhaseRequirements.................................................................................................29

Figure10:

Pre

Select

(Identify)

Phase ...............................................................................................................29

4.1.1.1 IdentifyBusinessNeeds ...............................................................................................................30

4.1.1.2 PrioritizeBusinessNeeds.............................................................................................................30

4.1.1.3 DevelopInvestmentBusinessCases...........................................................................................30

4.1.2 Preselect(Identify)PhaseRolesandResponsibilities .............................................................................30

4.2 SelectPhase ........................................................................................................................................ 324.2.1 SelectPhaseRequirements.......................................................................................................................33

Figure11:SelectPhase ......................................................................................................................................33

4.2.1.1 Evaluate,Score,andApproveInvestmentBusinessCases .....................................................33

4.2.1.2 AnalyzeandRankInvestments...................................................................................................34

4.2.1.3 SelectInvestmentPortfolio...........................................................................................................35

4.2.2 SelectPhaseRolesandResponsibilities ...................................................................................................35

4.3 ControlPhase..................................................................................................................................... 36

4.3.1 ControlPhaseRequirements....................................................................................................................37

Figure12:ControlPhase ...................................................................................................................................37

4.3.1.1 PlanandExecuteITInvestments ................................................................................................37

4.3.1.2 ReviewITInvestmentExecution.................................................................................................38

4.3.1.3 CloseITInvestments.....................................................................................................................38

4.3.2 ControlPhaseRolesandResponsibilities ................................................................................................38

4.4 EvaluatePhase................................................................................................................................... 404.4.1 EvaluatePhaseRequirements ..................................................................................................................40

Figure13:EvaluatePhase..................................................................................................................................41

4.4.1.1 ConductPostImplementationReview.......................................................................................41

4.4.1.2 ConductAssetEvaluation............................................................................................................41

4.4.1.3 DetermineAssetDisposition .......................................................................................................42

4.4.2 EvaluatePhaseRolesandResponsibilities...............................................................................................42

APPENDIXA: ACRONYMSUSEDINTHEITIMSTANDARD................................................ 44

APPENDIXB: ITIBITIMPHASERESPONSIBILITIES................................................................ 46

APPENDIXC: CIOITIMPHASERESPONSIBILITIES ................................................................ 47

APPENDIXD: PMDITIMPHASERESPONSIBILITIES.............................................................. 49


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APPENDIXE: CAOITIMPHASERESPONSIBILITIES............................................................... 51

APPENDIXF: SECRETARIATITIMPHASERESPONSIBILITIES............................................ 52

APPENDIXG: AGENCYITIMPHASERESPONSIBILITIES...................................................... 53


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1. INTRODUCTION

1.1 DefinitionofInformationTechnologyInvestmentManagement

InformationTechnologyInvestmentManagement(ITIM)isamanagementprocessthat

provides for the preselection (identification), selection, control, and evaluation of

business need driven Information Technology (IT) investments across the investment

lifecycle. ITIM uses structured processes to minimize risks, maximize return on

investments, and support Commonwealth agency decisions to maintain, migrate,

improve, retire, or obtain IT investments. ITIM is thebasis for the Commonwealths

approach to technology management as approved by the Information Technology

InvestmentBoardintheCommonwealthTechnologyManagementPolicy(CTMPolicy).

1.2 PurposeoftheInformationTechnologyResourceManagementITIM

Standard

The purpose of the Commonwealth of Virginia Information Technology Resource

ManagementITIMStandard(ITIMStandard)isto:

describethephasesintheITIMprocess;

definehowthevalueofanITinvestmentismeasuredineachphase;

identifytherequiredactionsassociatedwitheachphase;and,

assignrolesandresponsibilitiesforthoseactions,

inordertomaximizethebusinessvalueofITinvestmentsintheCommonwealth.

1.3 CommonwealthBusinessNeeds

ThebusinessneedsofagenciesdriveITinvestmentsintheCommonwealth. Toidentify

thosebusiness needs, agencies draw from a number of sources. The Governor of

Virginiaand theCouncilonVirginiasFuturebothsetgoals thatprovideoverarching

guidance

and

direction

on

how

Commonwealth

agencies

will

meet

the

Commonwealthsstrategicobjectives.Thesegoalshelpfocustheagenciesonwhatthe

citizens need. The Commonwealth goals also form the foundation for both the

CommonwealthStrategicPlanforITandtheAgencyStrategicPlans.FederalandState

mandates and laws will also drive Commonwealthbusiness needs. There are also

opportunities to provide citizen services that arise when grant funding is made

availabletotheagencies. Inaddition,someagenciesuseConsumerBoardstoidentify


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the needs of the citizens who use the agencys services. Together, all of these drivers

help Commonwealth agencies identify and documentbusiness needs, and invest in

technologytomeetthoseneeds.

Figure1:DriversofCommonwealthBusinessNeeds

1.4 TheITIMProcess

ITIMistheCommonwealthsprimaryprocessfor:

1. IdentifyingthepotentialbusinessvalueinproposedITinvestments;

2. SelectingITinvestmentsthatbestmeetthebusinessneeds;

3.

Monitoring the performance of the initiatives for developing and placing the

selectedITinvestmentsintooperation;and

4. DeterminingiftheselectedITinvestmentsarecontinuingtodelivertheexpected

businessvalue.

TheITIMprocessconsistsoffourPhases. ThegoalofthePreSelect(Identify)Phaseis

toidentify,analyze,anddocumentITinvestmentsthatsupportagencybusinessneeds.

The goal of the Select Phase is to decide from among the potential investments

identifiedinthePreSelect(Identify)Phasewhichinvestmentstoundertake. Thegoal

of the Control Phase is to ensure that IT investments are developed and placed in

operationusingadisciplined,wellmanaged,andconsistentprocess. Thegoal of the

Evaluate Phase is to compare the actual performance results and benefits of an


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investmenttotherangeoftargetperformancemeasuresestablishedfortheinvestment.

TheITIMprocessisrepeatedwithintheagencyandtheCommonwealthonanannual

basisandaspartofthebudgetcycle.

Figure2:TheITIMPhases

ITIMintheCommonwealthisbasedon:

The recognition that the Commonwealth strategic planning process drives

technologyinvestmentstrategies;

The need to support effective communication about technology investment

decisions;

TheconceptthattechnologyinvestmentsintheCommonwealthsupportandadd

valueto

the

business

of

state

government;

and,

The premise that technology investments shouldbe prioritized, executed, and

measuredbasedonhowtheyachieveagencyandenterprisewidestrategicgoals

and objectives, and how they serve the critical business needs of the

Commonwealth.

1.5 ITIMStakeholders

ITIMstakeholdersarethegroupsorindividualswhohaveresponsibilityforactivities,

decisions,orgovernancewithintheITIMlifecycle. Eachstakeholderhasanimportant

roleinmaximizingthebusinessvalueofITinvestmentsintheCommonwealth.

1.5.1 InformationTechnologyInvestmentBoard(ITIB)

The Information Technology Investment Board (ITIB), as established in the Code of

Virginia, is comprised of members appointedby the Governor and theJoint Rules


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CommitteeoftheGeneralAssembly,plustheSecretaryofTechnology,whoservesinan

exofficiorolewithvotingprivileges,andtheAuditorofPublicAccounts,whoisanon

votingmember. TheITIBischargedwithsettingtechnologystrategies,standards,and

priorities,and

with

reviewing

and

prioritizing

major

technology

investments

proposed

by Commonwealth executive branch agencies and institutions of higher education

duringtheITIMSelectPhase.

Through ITIM, the ITIB helps the Commonwealth make informed IT investment

decisionsbyprovidingcodemandatedgovernanceoveragencyITinvestments,andby

recommending a portfolio of highvalue IT investments to the Governor and the

GeneralAssembly.

1.5.2 CommonwealthChiefInformationOfficer(CIO)

The Commonwealth Chief Information Officer (CIO), as established in the Code of

Virginia, is an appointee of the ITIB,and leads the Virginia Information Technologies

Agency(VITA.) OnbehalfoftheITIB,theCIOmanagesawidevarietyoftechnology

activities.

TheCIOsupportsCommonwealthagencyITinvestmentdecisionsduringeachPhasein

theITIMlifecycle. InthePreSelect(Identify)Phase,theCIOsupportstheidentification

anddocumentationofagencyITinvestmentbusinesscases.IntheSelectPhase,theCIO

makes recommendations to the ITIB as to which IT investments the Commonwealth

should undertake. In the Control Phase, the CIO ensures that IT investments are

developedandplaced inoperation usingadisciplined, wellmanaged,andconsistent

process. IntheEvaluatePhase,theCIOassistsagenciesbydocumentingtherangeof

target performance measures established for the investment, as determined in the

ControlPhase.

In addition, the CIO approves all technology management policies, standards, and

guidelines,andapprovesallmajorIT investments(projects,procurements, Invitations

for Bid (IFB), and Requests for Proposal (RFP)) in accordance with Code of Virginia

requirements.

1.5.3 CommonwealthChiefApplicationsOfficer(CAO)

TheCommonwealthChiefApplicationsOfficer(CAO)isanassigneeoftheGovernor.

The CIO has delegated responsibilities to the CAO which include developing data

standards, procedures, and metrics for agency Asset Portfolio Management, the


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identification of enterprise and collaboration opportunities in IT application

investments,andtheoversightandmanagementofsharedapplicationservices.

The CAO supports Commonwealth agency IT investment decisionsby providing the

opportunity for agencies to use shared application services, providing thebusiness

criteria for evaluating enterprise and collaboration opportunities, facilitating agency

AssetPortfolioManagementprocesses,andprovidingoversightfortheITIMEvaluate

Phase.

1.5.4 CommonwealthProjectManagementDivision(PMD)

TheCommonwealthProjectManagementDivision(PMD),asestablishedintheCodeof

Virginia, reports to the CIO and serves as the Commonwealth enterprise program

managementoffice.

The

PMD

represents

the

ITIB

and

CIO

in

providing

governance

and oversight of Commonwealth IT investments, the Commonwealth Project

Management Methodology (CPM Methodology), the Commonwealth Technology

Portfolio,andtheITIMlifecycle. ProjectManagementandITIMSpecialistswithinthe

PMD consult with agencies and assist them with the analysis and management of

projects,procurements,and ITstrategicplans. Inaddition, thePMDreviewsproject,

procurement, IFB, RFP, and strategic planning documentation and prepares

recommendationsfortheCIOandITIBasappropriate.

Through ITIM, thePMDsupportsCommonwealthagency IT investmentdecisionsby

developing the ITIMStandard,providingguidance foragenciesduringeachphase in

the ITIM lifecycle, and providing governance for the ITIM Preselect, Select, and

ControlPhases.

1.5.5 CommonwealthSecretariats

Commonwealth Secretariats coordinate the activities of agencies in the Secretariat to

ensure efficient, effective delivery of services. The Secretary, the leader of a

CommonwealthSecretariat,istheprincipaladvisortotheGovernoronpolicyrelatedto

the

services

the

Secretariats

agencies

provide.

The

Secretariat

is

responsible

for

the

formulation of policy related to matters of concern to the Secretariat, and for the

executionofapprovedpolicy.

ThroughITIM,theCommonwealthSecretariatssupportagencyITinvestmentdecisions

by determining the overallbusiness priorities for their Secretariat, establishing and

prioritizingITinvestmentsduringtheITIMPreselect(Identify)Phase,andactingasa


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15

keystakeholder foreachmajorprojectwithin theSecretariatduring the ITIMControl

Phase.

1.5.6

Commonwealth

Agencies

Commonwealth agencies are administrative units establishedby law orby executive

order in the executive branch of government responsible for the oversight and

administrationofspecificfunctionsandservices. Agenciesarethebusinessownersof

IT investments in theCommonwealth,and thekeystakeholders in the ITIM lifecycle.

AllITIMactivitiesaregearedtowardsupportingCommonwealthagencyITinvestment

decisions.

1.5.7 CommonwealthPrograms

A program is a group of related projects managed in a coordinated way to obtain

business value and control not available from managing the projects individually.

Programs may include elements of related work outside of the scope of the discrete

projectsintheprogram. Aprogramcanbeestablishedinavarietyofways:

Byanagencytomanageagroupofprojectscollectively;

By a Secretariat to manage a collection of projects that require collaboration

acrossagencyboundaries;

By the Governor to facilitate enterprisewide (i.e. state governmentwide)

productivity and technology improvements, shared services, or collaboration

acrossSecretariatboundaries;or

BytheGeneralAssembly.

WheretheITIBhasaninterestoroversightresponsibilitiesfortheITcomponentsofa

program,PMDwillprovideoversightonbehalfoftheITIB.

1.6 CommonwealthStrategicPlanning

Commonwealth

agency

strategic

plans,

the

Commonwealth

of

Virginia

Strategic

Plan

for Information Technology, the longterm objectives set forth by the Council on

Virginias Future, and the Governors Priority Initiatives are used to ensure that IT

directly and measurably supportsbusiness goals. Both the Commonwealth strategic

planningprocessandtheITIMprocessalignwiththeCommonwealthbudgetingcycle.


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Agencies within the executive branch develop and implement strategic plans and

budgets designed to support the achievement of longterm objectives and the

fulfillment of agency missions and mandates. In addition, agencies monitor the

progressof

their

plans

and

make

adjustments,

as

needed,

to

ensure

desired

outcomes

areachieved. Thestrategicplanisusedtoprovideguidancetoallagencydepartments.

Strategic planning is a management tool usedby agency leaders to determine and

communicate what the agency wants to accomplish in a designated time period, to

monitor theagencysoverallperformance,and tomakecoursecorrections tohelp the

agencyachieveitsstrategicgoals.

1.6.1 TheCouncilonVirginiasFuture

TheCouncilonVirginiasFuturewasestablishedonJuly1,2003,tomeasureVirginias

performance, prioritize future goals, and establish metrics to help measure theCommonwealthsprogresstowardmeetingthosegoals.

The Council on Virginias Future promulgates the Roadmap for Virginias Future, a

planning and accountability process capable ofbuilding and sustaining a consistent

focus throughout all functions and locations of state government on those things

mostvital toVirginiasFuture. TheRoadmapforVirginias Future identifies long term

businessobjectivesfortheCommonwealth.

FormoreinformationaboutTheCouncilonVirginiasFuture,pleasegototheirwebsite

athttp://www.future.virginia.gov/

1.6.2 CommonwealthofVirginiaStrategicPlanforInformationTechnology

TheCommonwealthofVirginiaStrategicPlanforInformationTechnologyspecifiesthe

strategic Mission and Vision for information technology in the Commonwealth, and

strategic goals for information technology, including objectives, measurements and

initiativesthatareintendedtodeliveronthatMissionandVision. Thestrategicgoals

align to and support the long termbusiness objectives identified in the Roadmapfor

VirginiasFuture.

AllCommonwealthagencystrategicplansareexpectedtofullyalignwiththestrategic

goals, objectives, measurements, and initiatives identified in the Commonwealth of

VirginiaStrategicPlanforInformationTechnology.


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For more information about the Commonwealth of Virginia Strategic Plan for

InformationTechnology,pleasegototheVITAwebsiteathttp://www.vita.virginia.gov

/library/default.aspx?id=829.

1.6.3 CommonwealthEnterpriseArchitecture(EA)

CommonwealthEnterpriseArchitecture(EA)isafundamentalfactorindevelopingand

monitoring strategic planning for information technology. To ensure that EA and

information technology support thebusiness of the Commonwealth, an EA process

model has been adopted that continually integrates and synchronizes appropriate

technologiessothattheybestservethebusinessofstategovernmentandthecitizensof

the Commonwealth. In this process model,business needs drive what is done in the

Commonwealth and enterprise architecture determines how information technology

supportsthosebusinessneeds.

Figure3:EnterpriseArchitectureProcessModel

For more information about EA, please go to the VITA website at

http://www.vita.virginia.gov/oversight/default.aspx?id=349.


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1.6.4 CommonwealthTechnologyPortfolio(CTP)

TheCommonwealthTechnologyPortfolio(CTP)istheexecutivebranchrepositoryfor

technology

investments,

and

is

an

aggregated

view

of

individual

agency

projects

and

assetssupportingCommonwealthandagencybusinessstrategies. TheCTPdocuments

the current asis view of projects and assets, and facilitates selection of technology

investments for the migration to the tobe enterprise architecture. The selection of

technology investments, and migration to the tobe architecture, begins with a

comprehensive analysisof the current (asis) technology portfolio.When theasis

stateisunderstood,theCommonwealthcanevaluatetheabilityoftheportfoliotomeet

thestrategicgoalsandobjectives,and/oraddresscriticalbusinessneeds,andselectIT

investments that best support agency missions and the business activities of the

Commonwealth.

1.6.5 AgencyITStrategicPlan(ITSP)

TheagencyITStrategicPlan(ITSP)isacollaborativeeffortbetweenthebusinessandIT

leaders within the agency, and is comprised of the Resources: Information Technology

Summary and theAppendixA: Information Technology sections of the Agency Strategic

Plan. TheITSPistheprimarytoolforcommunicatinghowagencybusinessneedsdrive

IT investment decisions, and how the agencys IT investments support thebusiness

goals and objectives of the agency and the Commonwealth. The ITSP provides a

detailedviewofagencyIT investments, identifiesthealignmentofeach individualIT

investmenttotheagencysserviceareaobjectivesandasisbusinessarchitecture,and

provides additional information for each investment (i.e., costs, start and end dates,

serviceareaowner,etc.)

1.6.6 AgencyTechnologyPortfolio(ATP)

The Agency Technology Portfolio (ATP) is a best practice of keeping a central

repositoryforalltheITinvestmentinformationtheagencyneedstomanage. Ifallofan

agencysITinvestmentmanagementinformationisdocumentedintheCTP,theagency

canuse theCTP in lieuofmaintainingaseparateATP.However, ifanagencyhas ITinvestments that are not documented in the CTP, then a separate ATP is highly

recommended. The size and complexity of the ATP depends on the scope of the

agencysITinvestments:anagencywithrelativelyfewITinvestmentsoutsidetheCTP

maybeabletomanagetheirATPusingaspreadsheet,whileanagencywithsignificant

IT investments outside the CTP may need to use a portfolio management tool to


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manage their ATP. While an ATP is not required, its use to support agency IT

investmentdecisionsisstronglyencouraged.


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2. MEASURINGITINVESTMENTVALUE

2.1 WhatisValue?

Value is a measure thatdemonstrates how an IT investmentcontributes to improved

constituentservicelevels,agencyoperationalefficiencies,andthestrategicgoalsofthe

Commonwealth. ITinvestmentsmayhavemultiplevaluemeasuresinone,two,orall

three value categories. Some value measures may even apply to two or even three

categories.

The Commonwealth uses the measurement of an IT investments value as a way to

quantify agency business benefits and track them throughout the IT investment

lifecycle.Measuring

IT

investment

value

with

afocused,

standardized

set

of

evaluation

criteria allows the Commonwealth to forecast value during investmentbusiness case

developmentandinvestmentselection.

2.1.1 ConstituentService

ConstituentserviceisthemeasureofhowwellanITinvestmenthelpsthecitizensofthe

Commonwealth. This can include offering financialbenefits 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

constituentbenefits,oragreaterfocusonconstituentneeds.

2.1.2 OperationalEfficiency

OperationalefficiencyisthemeasureofanITinvestmentscapabilitytoreduceagency

operationalandinventorycosts,orprovideotherfinancialbenefitssuchasstreamlined

supply chains, new revenue streams, higher productivity, error reductions, faster

mergingofadministrativeprocesses,oranimprovementinagencyperformanceagainst

DepartmentofPlanningandBudget(DPB)ProductivityMeasures.

2.1.3Strategic

Alignment

Strategic alignment is the measure of an IT investments support for Commonwealth

goals and objectives as expressed in the individual agency strategic plans, the

CommonwealthofVirginiaStrategicPlanforInformationTechnology,theGovernors


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Initiatives, federal and state mandates, and the Commonwealths Enterprise

Architecture. Italsoincludestheapplicabilityoftheinvestmentacrosstheenterprise.

2.2

Using

Value

and

Risk

to

Make

IT

Investment

Decisions

One of the primary goals of ITIM is to support valuebased agency IT investment

decisions,andtheuseofvalueandriskcanbetrackedacrosstheentireITIMcycle. In

the Preselect (Identify) Phase, the value of an IT investment in serving an agency

businessneedsiscomparedtotheITinvestmentsrisksasillustratedintheexampleIT

investor mapbelow. In the Select Phase, IT investments are rankedbased on their

proposedvaluerelativetoriskandtheinvestmentswiththebestrankingarechosenfor

implementation. IntheControlPhase, IT investmentvaluesarerefinedandrisksare

mitigated in conjunction with asset delivery. And in the Evaluate Phase, IT asset

performance is measured against value metrics to determine if the investment ismeetingtheagencysbusinessneeds.

Figure4:ExampleITInvestorMapShowingValuevs.Risk


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3. PORTFOLIOMANAGEMENT

3.1 WhatisPortfolioManagement?

In a manner similar to managing a collection of financial investments contained in a

financial portfolio, the Commonwealth uses portfolio management techniques to

manage IT investments across the ITIM process. The CTP is the executivebranch

repository for IT investments, and is an aggregated view of individual agency IT

investments supporting Commonwealth and agency business strategies. The CTP

contains investments in current IT assets and projects to deliver new IT assets. IT

investments are managed across the four ITIM phases by executing two cycles of

activitiesintheCTP:ProjectPortfolioManagementandAssetPortfolioManagement.

Figure5:ITIM,APM,andPPM

3.2Commonwealth

Project

Portfolio

Management

(PPM)

CommonwealthProjectPortfolioManagement(PPM)isacycleofactivitiesdirectedby

the Code of Virginia and aligned with industrybest practices that the Commonwealth

uses for governing and executing current or proposed IT investments. The

fundamentalobjectiveofthePPMcycleistodeterminetheoptimalmixandsequencing


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of IT investments and control their delivery to best achieve the Commonwealths

overallgoals.

Figure6:ThePPMLifecycle

PPMsupportsongoingmeasurementoftheprojectportfoliosoeachITinvestmentcan

be monitored for its relative contribution tobusiness goals and improvingbusiness

value.

3.2.1 ITInvestmentAnalysisandRanking

During the IT Investment Analysis and Ranking Phase of PPM, all of the agency

investmentbusinesscasesarecollectedfromtheiragencyITSPs. AtthedirectionoftheITIB,thePMDconductsanalysisonmajorandnonmajorITinvestmentbusinesscases

basedontherelativevaluetheITinvestmentsprovidetotheCommonwealth. MajorIT

investments are then ranked by value in the draft Recommended Technology

InvestmentProjectsReport(RTIPReport)andpresentedtotheITIBforreview.

3.2.2 SelectITPortfolio

During the Select ITPortfolio Phase of PPM, the ITIB reviews the draft RTIP Report,

and

the

value

provided

by

each

IT

investment,

and

selects

which

IT

investments

will

rankedinthefinalRTIPReport. TheITIBthensubmitsthefinalRTIPReport,including

recommended priorities for funding the projects, to the Governor and General

Assembly. ThissubmissionisdueeachSeptember1asrequiredbytheCodeofVirginia.

WhenthefinalRTIPReportissubmittedtheprojectsareaddedtotheCTP.


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3.2.3 ControlOngoingProjects

DuringtheControlOngoingProjectsPhaseofPPM,executivebranchagenciesusethe

CPM

Methodology

identified

in

the

PM

Standard

to

manage

the

ITIB

approved

projects

intheCTP.TheCPMMethodologyisusedbytheITIB,theCIO,andtheSecretariatsto

ensurethatCommonwealthprojectsaremanagedontime,onbudget,andwithinscope

againstamanagedbaseline.

3.2.4 CloseoutProjectandPrograms

During the Closeout Project and Programs Phase of PPM, project and programs are

closed out and agencies accept the deliverables. When the operational products or

services are established, the project oversight authority concludes that the project or

programhassatisfieditspurposeasdescribedintheCTP. Projectsandprogramsalsodeliver a set of performance metrics for each IT asset at closeout. The performance

metricsaredocumentedintheATPandusedbytheagencyduringtheAssetPortfolio

Management lifecycle to evaluate the degree to which the asset serves the agencys

businessneeds.

3.3 CommonwealthAssetPortfolioManagement(APM)

CommonwealthAssetPortfolioManagement(APM)isacycleofactivitiesalignedwith

industrybestpracticesthattheCommonwealthusesforevaluatingtheperformanceof

ITassetsand linking investments in ITassets tobusinessneeds. Theobjectiveof the

APM cycle is to realize optimal value from IT investments. APM supports ongoing

measurement of IT investment performance to ensure the assets contribution to

businessgoalsandimprovingbusinessvalue.


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Figure7:TheAPMLifecycle

APM is conducted using two parallel cycles of asset management activities:

InfrastructureServicePortfolioManagementandSolutionsPortfolioManagement. To

facilitate APM activities, agencies are strongly encouraged to maintain an ATP as a

centralrepositoryforalltheassetmanagement informationtheagencyneedsforeach

oftheagencysITinvestments.

3.3.1 InfrastructureServicePortfolioManagement(ISPM)

CommonwealthInfrastructureServicePortfolioManagement(ISPM)isasubsetofAPM

that theCommonwealthuses forevaluating theperformanceofagency infrastructure

servicesandlinkinginfrastructureinvestmentstoagencybusinessneeds.

Figure8:TheISPMLifecycle

ISPM includes both specialized infrastructure managed by the agencies and

infrastructureservicesmanagedthroughtheCommonwealthsITPartnership.

3.3.1.1MeasureInfrastructureServicesPerformance

During the Measure Infrastructure Services Performance Phase of ISPM, agencies

systematically collect, record, and report information on the performance of all ITinfrastructure services in their ATP. All infrastructure services in the ATP, whether

managed through the IT Partnership or managedby the agency, should have service

levelperformancemeasuresassignedtothem,andtheperformancemeasuresshouldbe

directlytiedtothebusinessneedsoftheagencyandthevaluetheinvestmentprovides


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totheCommonwealth. ForguidanceonperformancemeasurespleaseseetheStrategic

PlanningsectionoftheDPBwebsiteathttp://dpb.virginia.gov/sp/sp.cfm.

3.3.1.2 EvaluateInfrastructureServiceValue

DuringtheEvaluateInfrastructureServiceValuePhaseofISPM,theagencycompares

theresultsoftheinfrastructureserviceperformancemeasurementsgatheredinthefirst

ISPMphasetotheservicelevelagreementsdocumentedintheATP. Correctiveactions

are developed as needed to bring infrastructure services into alignment with their

servicelevels. Inaddition,trendsininfrastructureserviceperformancearecomparedto

trendsininfrastructureservicecoststodetermineifthereisagapbetweentheprojected

business value of the infrastructure service and the agencys business needs as

documentedintheAgencyStrategicPlan.

3.3.1.3 DetermineDispositionofCurrentInfrastructure

During the Determine Disposition of Current Infrastructure Phase of ISPM, agency

leadership determines the disposition of infrastructure services currently in the ATP

based on the analysis conducted in the Evaluate Infrastructure Service Value Phase.

Thedispositionofacurrentinfrastructureservicesfallsintooneoffourcategories:

1.

Maintaincontinue to sustain infrastructure services that will meet or exceed

thebusinessneedsoftheagency;

2.

Migratemodify the use of infrastructure services that are not meeting theirtargetagencybusinessneedtoaddressadifferentagencybusinessneed;

3. Improvereengineerorotherwisemodernizeinfrastructureservicesthatarenot

meetingtheirtargetagencybusinessneedtosuccessfullyaddressthatneed;or,

4. Retirewithdraw from service infrastructure services that do not justify

maintenance, migration, or improvement due to limited business value.

Infrastructureservicesareretiredwhen theretirementproducesmorebusiness

valuethantheotherthreedispositionoptions.

3.3.1.4

Identify

Business

Need

for

IT

Investment

DuringtheIdentifyBusinessNeedforITInvestmentPhaseofISPM,agencyleadership

assesses the agencys business needs and identifies all opportunities for business

investment. Agency leadership thenexamines theopportunitiesanddetermines ifan

IT investment offers a possible solution. The agency then identifies each potential

infrastructureserviceinvestmentintheiragencysITSP. Theinclusionofthepotential


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infrastructureserviceinvestmentintheITSPisthefirststepinobtaininginfrastructure

services whether the service is provided through VITA or obtained through the

procurement,IFB,orRFPprocess.

3.3.2 SolutionsPortfolioManagement(SPM)

Commonwealth Solutions Portfolio Management (SPM) is a subset of APM that the

Commonwealthusesforevaluatingtheperformanceofagencyapplicationsandlinking

applicationinvestmentstoagencybusinessneeds.

Figure9:TheSPMLifecycle

SPM includesboth specialized applications managedby the agencies and application

servicesmanagedthroughtheCommonwealthsITPartnership.

3.3.2.1MeasureApplicationPerformance

During the Measure Application Performance Phase of SPM, agencies systematically

collect,record,andreportinformationontheperformanceofallITapplicationsintheir

ATP. All IT applications in the ATP should have performance measures assigned to

them,andtheperformancemeasuresshouldbedirectlytiedtothebusinessneedsofthe

agencyand

the

value

the

investment

provides

to

the

Commonwealth.

For

applications

delivered through the CPM Methodology, the proposed range for each performance

measure is included in the investmentbusiness case, and the specific performance

measures are documented in the projects Closeout Report. For guidance on

performancemeasurespleaseseetheStrategicPlanningsectionoftheDPBwebsiteat

http://dpb.virginia.gov/sp/sp.cfm.


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3.3.2.2

Evaluate

Application

Value

DuringtheEvaluateApplicationValuePhaseofSPM,theagencycomparestheresults

of the application performance measurements gathered in the Measure Application

Performance Phase to the target performance measures documented in the ATP.

Correctiveactionsaredevelopedasneeded tobring applications intoalignmentwith

theirexpectedperformancetargets. Inaddition,trendsinapplicationperformanceare

compared to trends in application costs to determine if there is a gapbetween the

projected business value of the application and the agencys business needs as

documentedintheagencystrategicplan.

3.3.2.3

Determine

Disposition

of

Current

Applications

During

the

Determine

Disposition

of

Current

Applications

Phase

of

SPM,

agency

leadershipdeterminesthedispositionofapplicationscurrentlyintheATPbasedonthe

analysis conducted in the Evaluate Application Value Phase. The disposition of a

currentapplicationfallsintooneoffourcategories:

1. Maintaincontinuetosustainapplicationsthatwillmeetorexceedthebusiness

needsoftheagency;

2. Migratemodifytheuseofapplicationsthatarenotmeetingtheirtargetagency

businessneedtoaddressadifferentagencybusinessneed;

3. Improvereengineerorotherwisemodernizeapplicationsthatarenotmeeting

theirtargetagencybusinessneedtosuccessfullyaddressthatneed;or,4.

Retirewithdraw from service applications that do not justify maintenance,

migration, or improvement due to limited business value. Applications are

retiredwhen theretirementproducesmorebusinessvalue than theother three

dispositionoptions.

3.3.2.4 IdentifyBusinessNeedforITInvestment

DuringtheIdentifyBusinessNeedforITInvestmentPhaseofSPM,agencyleadership

assesses the agencys business needs and identifies all opportunities for business

investment. Agency leadership thenexamines theopportunitiesanddetermines ifan

IT investment offers a possible solution. The agency then identifies each potential

applicationinvestmentintheiragencysITSP. Theinclusionofthepotentialapplication

investment in the ITSP is the first step in obtaining the application whether it is

provided through VITA or obtained through the procurement, IFB, or RFP process.


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4. PHASESOFITIM

4.1 Preselect(Identify)Phase

ThepurposeofthePreSelect(Identify)Phaseistoidentify,analyze,anddocumentIT

investments that support agency business needs in the context of Commonwealth

business needs. The PreSelect (Identify) Phase allows agencies to definebusiness

objectives, associate costs with the potential IT investments needed to meet those

businessobjectives,anddocumentarangeofperformancemeasuresfortheirpotential

IT investments. Completion of this phase answers the question What proposed IT

investmentspotentiallysolveagencybusinessneeds?

4.1.1

Pre

select

(Identify)

Phase

Requirements

ThehighlevelrequirementsofthePreSelect(Identify)Phaseandtheirrelationshipto

theAPMandPPMlifecyclesareillustratedbelow.

Figure10:PreSelect(Identify)Phase


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4.1.1.1

Identify

Business

Needs

AkeyoutcomeoftheagencyITstrategicplanningprocessistheidentificationofnew

businessneeds thatcanbemetwithpotential IT investments. This iscombinedwith

theresultsoftheagencysidentificationofbusinessneedsandinvestmentopportunities

fromtheAPMprocesstoderivealistofITinvestmentopportunities. Theagencymay

identify additional IT investment opportunities from the Commonwealth of Virginia

Strategic Plan for Information Technology, the longterm objectives set forthby the

CouncilonVirginiasFuture,andtheGovernorsPriorityInitiatives.

4.1.1.2

Prioritize

Business

Needs

Agenciesfrequentlywillnothavetheresourcestoundertakeallofthe IT investment

opportunities

identified

in

their

strategic

plans,

therefore,

agencies

must

review

and

rank potential IT investments according to theirbusiness priorities. In determining

businesspriorities,agenciesdraw information from their AgencyStrategic Plan, their

Secretariat,andtheCAO.

4.1.1.3

Develop

Investment

Business

Cases

The final requirement in the PreSelect Phase is to develop the Investment Business

Case(IBC)foreachpotentialinvestmentnotcurrentlyidentifiedintheCTP,andtoadd

the IBC to the Agency Strategic Plan. The IBC provides, at a high level and in a

standardizedformat,theinformationnecessarytoevaluateapotentialITinvestmentintheITIMSelectPhase. TheIBCmustincludearangeoftargetperformancemeasures

that willbe refined during the ITIM Control Phase and used in the ITIM Evaluate

Phase.

4.1.2 Preselect(Identify)PhaseRolesandResponsibilities

TherolesandresponsibilitiesofthestakeholdersintheITIMlifecyclearedocumented

inboth the Code of Virginia and in Commonwealth standards. The following is a

summary of the major stakeholder roles and responsibilities for the ITIM PreSelect

(Identify)Phase.


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Role Preselect(Identify)PhaseResponsibilities

ITIB ApproveallcriteriaforevaluatingCommonwealthITInvestments;

Approvestatewideinformationtechnologyarchitectureandrelatedsetofsystem

standards;

ApprovethefouryearCommonwealthofVirginiaStrategicPlanforInformation

Technology;

Approvestatewidetechnicalanddatastandardsforinformationtechnologyand

relatedsystems;and

Approvestrategies,standards,andprioritiesrecommendedbytheChief

InformationOfficerfortheuseofinformationtechnologyforstateagenciesinthe

executivebranchofstategovernment.

CIO DefinecriteriaforevaluatingCommonwealthITinvestments;

Reviewandapproveallstateagencyandpublicinstitutionofhighereducation

informationtechnologyplans;

EvaluateandrecommendapprovalordisapprovaloftheITcomponentsofagency

strategicplansorITinvestmentchangestoagencystrategicplans;

DevelopthefouryearCommonwealthofVirginiaStrategicPlanforInformation

Technology,updatethePlanannually,andsubmittotheBoardforapproval;

Planandforecastfutureneedsforinformationtechnologyandconductstudiesand

surveysoforganizationalstructuresandbestmanagement practicesofinformation

technologysystemsandprocedures;

Assiststateagenciesandpublicinstitutionsofhighereducationinthe

developmentofinformationmanagementplansandthepreparationofbudget

requestsforinformationtechnology;

Developstatewidetechnicalstandardsforinformationtechnologyandrelatedsystems;and

DefinetheCommonwealthsasisandtobeEnterpriseArchitecture.

PMD EvaluateallITinvestmentsthatqualifyasCommonwealthPortfolioinvestments

accordingtoITIBapprovedcriteria;

Reviewagencyandpublicinstitutionofhighereducationinformation

managementandinformationtechnologyplansandrecommendapprovalor

disapprovaltotheCIO;

Monitoragencyandpublicinstitutionofhighereducationimplementationof

informationmanagementandinformationtechnologyplansandperiodically

reportfindingstotheCIO;

Everytwoyears,aspartofthebudgetprocess,evaluateagencyandpublicinstitutionofhighereducationInformationTechnologyStrategicPlans(ITSP)and

recommendapprovalordisapprovaltotheCIO;

Insureallagenciesandpublicinstitutionsofhighereducationunderoversightand

governancehaveaCIOapprovedITSP;and

Onanongoingbasis,evaluateITinvestmentchangestoagencyandpublic

institutionofhighereducationstrategicplansandrecommendforapprovalor

disapprovaltotheCIO.


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Role Preselect(Identify)PhaseResponsibilities

CAO WhendelegatedbytheCIO,andwithinthePolicy,StandardsandGuidelines

alreadyestablishedintheCommonwealth:

o Developstatewidedatastandardsforinformationtechnologyandrelated

systems;

o DevelopandobtainITIBapprovalofthebusinesscriteriausedfor

evaluatingtheenterpriseandcollaborationopportunitiesinagencyIT

applicationprojects;

o EvaluatetheenterpriseandcollaborationopportunitiesinagencyIT

applicationprojectsusingITIBapprovedcriteria;and,

o IncoordinationwiththeCIO,definetheCommonwealthsasisandto

beEnterpriseBusinessArchitecture,EnterpriseInformationArchitecture,

andEnterpriseSolutionsArchitecture.

Secretariat EstablishbusinessprioritiesfortheirSecretariat.

Agency Identifybusinessneedsandprioritizepotentialinvestments;

Documenttargetperformancemetricsandidentifybusinessvalueforpotential

investmentsinInvestmentBusinessCases;

Researchpossibleenterpriseorcollaborationopportunitiesfortheagency;and

UpdatetheAgencyStrategicPlanandAgencyTechnologyPortfoliowithIT

investmentbusinesscases,identifiedbusinessneeds,andidentifiedvalueforeach

potentialinvestment.

For ease of reference, the appendices enumerate ITIM Phase requirements by

stakeholder.

4.2Select

Phase

ThepurposeoftheSelectPhaseistodecidefromamongtheinvestmentsidentifiedin

thePreSelect(Identify)Phase,andinvestmentsinthecurrentCTP,whichinvestments

bestsupport:

1. Theagencysmission,strategicgoals,andmandates;

2.

TheCommonwealthofVirginiaStrategicPlanforInformationTechnology;

3. The longterm objectives for the Commonwealth identified in the Roadmapfor

VirginiasFuture;and

4.

TheGovernorsPriorityInitiatives.

In the Select Phase, all major IT project investments are scored and rankedby their

businessvalue, inconjunctionwith theCommonwealthbudgetdevelopmentcycle, to

determine which investments are tobe recommended for fundingby the ITIB to the

GovernorandGeneralAssemblyonSeptember1ofeachyear.


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TheIBCforaproposedIT investmentis initiallyevaluatedandscoredbytheagency.

Thescoresfrom theproposed IT investmentsare thenanalyzedalongwiththescores

fromtheagencysongoingITinvestments. Basedontheagencyinternalanalysis,the

agencyranks

all

its

IT

investments

and

subsequently

selects

the

investment

business

cases to include in theAgencyStrategicPlan. Once theagencyselects its investment

businesscases, proposed investments that qualify as Commonwealth investments are

identifiedforevaluationandapprovalattheCommonwealthlevel. Completionofthe

SelectPhaseanswersthequestionWhatITinvestmentsbestmeetthebusinessneeds?

4.2.1 SelectPhaseRequirements

ThehighlevelrequirementsoftheSelectPhaseandtheirrelationshiptotheAPMand

PPMlifecyclesareillustratedbelow.

Figure11:SelectPhase

4.2.1.1

Evaluate,

Score,

and

Approve

Investment

Business

Cases

AfterITinvestmentsareidentifiedbasedonbusinessneeds,eachIBCwillbeevaluated,

scored,andapproved. Attheagencylevel,itishighlyrecommendedthattheagencies

usetheCommonwealthsevaluationandscoringcriteria,asestablishedbytheITIB,to

demonstratehowanIT investmentcontributesto improvedconstituentservice levels,

agency operational efficiencies, and the strategic goals of the Commonwealth. The


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evaluation and scoring procedures contained in the Commonwealth IT portfolio

managementtoolworkflowmustbeusedforagencyproposedinvestmentsthatqualify

asCommonwealthinvestments. Commonwealthinvestmentsaredefinedasprojectsor

procurements

that

are

mission

critical,projects

or

procurements

that

have

state

wide

application, projects with a cost greater than $100,000, or procurements with a cost

greaterthan$50,000.Theresultsoftheagencyevaluationandscoringactivitiesshould

bedocumentedintheATP.

CommonwealthIBCsmustbeevaluatedandapprovedbytheCIOpriortoinclusionin

the CTP. PMD administers the evaluation and approval process using the

CommonwealthITportfoliomanagementtoolworkflow.

Thefinaloutputfromthisevaluationandapprovalprocessisadecisiononwhethera

proposedinvestmentis:

IdentifiedforPreliminaryPlanning (IPP)Aprojectportfoliocategoryforprojects

that address an agencybusiness need,but which require additional effortby the

agencyorfurtherreviewbytheCIOandITIBbeforetheexpenditureoffundswill

beauthorized;

ApprovedforProjectPlanning(APP)Aprojectportfoliocategoryforprojectsthat

havereceivedapprovaloftheprojectsinvestmentbusinesscasefromtheCIO.APP

authorizestheagencytoexpendfundsinpreparationforDevelopmentApproval;or

Disapproved.

Agencyapprovingauthoritieswillmakeappropriatedecisionsforprojectsandthatdo

notexceed$100,000. TheCIOwillmakeappropriatedecisionsformajorandnonmajor

ITprojectsandprocurementsover$100,000.

CommonwealthITinvestmentswhicharegivenIPPstatusordisapprovedwillinclude

aCIOrationaleforthedecision.IPPanddisapprovedpotentialITinvestmentsmaybe

resubmitted by the agency, with additional information that addresses the CIO

rationale,forfurtherconsiderationbytheCIO.

4.2.1.2AnalyzeandRankInvestments

ThenextrequirementintheSelectPhaseistoanalyzealltheapprovedITinvestments

intheportfolioandranktheminorderbybusinessvalue. Attheagencylevel,thefinal

outputfromthisactivitywillbeanagencyranked investmentportfolioreviewedand

approvedbytheagencyapprovingauthority.


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AttheCommonwealthlevel,PMDusesthemeasurementofanITinvestmentsvalueas

a way to quantify agencybusinessbenefits, and will make a recommendation to the

CIOontherankorderforallMajorITprojectsthathavebeengrantedAPPstatusona

quarterlybasis.

Analysis of the CTP must follow the Commonwealth IT portfolio management tool

workflow.

4.2.1.3 SelectInvestmentPortfolio

The final requirement in the Select Phase is to select and approve the IT investment

portfolio. Theagencyportfolio willbeapprovedby the agency approving authority.

The CTP mustbe documented in the Commonwealth IT portfolio management tool.

The

CIO

will

review

a

final

RTIP

Report,

with

Major

IT

Projects

rankedby

business

valueandrecommendedpriorities for fundingmajor ITprojects,andsubmit it to the

ITIB. TheITIBwillapproveordisapproveprioritiesandfundingforCommonwealth

investmentsintheRTIPReportandsubmittheirrecommendationtotheGovernorand

GeneralAssemblybySeptember1ofeachyear.

4.2.2 SelectPhaseRolesandResponsibilities

TherolesandresponsibilitiesofthestakeholdersintheITIMlifecyclearedocumented

inboth the Code of Virginia and in Commonwealth standards. The following is a

summaryofthemajorstakeholderrolesandresponsibilitiesfortheITIMSelectPhase.

Role SelectPhaseResponsibilities

ITIB Approvetheevaluation,scoring,andrankingcriteriaformajorITprojects;

Approvetheinclusionofinvestments,andtherankingofthoseinvestments,in

theRTIPReport;and

SubmitbySeptember1ofeachyeartheRTIPReport,withprioritiesforfunding

recommendedprojects,totheGovernorandtheGeneralAssembly.

CIO Review agency ITbudgets and make recommendations to the Department of

PlanningandBudget(DPB);

Build and maintain a Commonwealth Technology Portfolio (CTP) to include

bothassetsandprojects; Review and approve for planning all Major and Nonmajor IT projects and

procurementsover$100,000;and

ReviewCommonwealthITportfolioanalysis,accompanyingdocuments,andthe

recommendedCommonwealthITportfolioandsubmittheannualRTIPReport,

withrecommendedprioritiesforfundingprojects,totheBoardinanticipationof

the Board submitting the RTIP to the Governor and the General Assemblyby

September1ofeachyear.


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Role SelectPhaseResponsibilities

PMD Provideongoingassistanceandsupporttostateagenciesandpublicinstitutions

ofhighereducationinthedevelopmentofinformationtechnologyprojects;

ReviewagencyITinvestmentsandrecommendplanningapprovalor

disapprovaltotheCIO; Evaluate,score,andrankallmajorITprojectsaccordingtotheapprovedITIB

criteriaandsubmitarecommendationforfundingtotheCIO;

PreparetheAnnualRecommendedTechnologyInvestmentProjects(RTIP)

Reportandprovideaquarterlyupdate;

ObtainITIBapprovaloftheRTIPReportwithrecommendedprioritiesfor

fundingprojects;

ObtainCIOandITIBkeythemesandmessagesandpreparetheRTIPReportfor

deliverytotheGovernorandGeneralAssemblyonSeptember1ofeachyear;

and

ReviewandapproveagencyITbudgetrecommendationstotheCIO.

CAO

Coordinatewith

Secretariats

to

prioritize

the

Secretariats

Major

IT

application

ProjectsfortheRTIPReport;

WorkwiththeagenciestoestablishaCommonwealthApplicationsStrategythat

establishesprioritiesforbusinessapplicationrequirements;and

AsasupplementtothePreliminaryRiskAssessmentperformedbyPMD,

identifytherisksassociatedwithITapplicationinvestmentsaspresentedinthe

RTIPreportanddocumenttherisksintheCommonwealthTechnologyPortfolio

(CTP).

Secretariat PrioritizetheSecretariatsMajorITProjects.

Agency Establishaprocessforevaluating,scoring,andrankingITinvestmentsforthe

agency;and

PrioritizeagencyITProjects.

For ease of reference, the appendices enumerate ITIM Phase requirements by

stakeholder.

4.3 ControlPhase

ThepurposeoftheControlPhaseistoensure,throughtimelyoversight,qualitycontrol,

andexecutivereview,thatITinvestmentsaredevelopedandplacedinoperationusing

adisciplined,wellmanaged,andconsistentprocess. Duringthisprocess,theprogress

andperformance

of

IT

investment

initiatives

are

regularly

monitored

against

projected

cost,schedule,andperformancemetrics, inaccordancewiththe investmentsplanned

review schedule. When issues or problems are identified, corrective action is taken.

The Control Phase is characterized by decisions to continue, modify, or terminate

investment initiatives. Decisions arebased on reviews at key milestones during the

investment lifecycle and reviews conducted on predefined periodic schedules. The

focus of these reviews changes and expands as the investment moves through the


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investment lifecycle, and as projected investment costs and benefits change.

Completion of the Control Phase answers the question Are the initiatives for

developing and placing the selected IT investments into operation performing as

planned?

4.3.1 ControlPhaseRequirements

ThehighlevelrequirementsoftheControlPhaseandtheirrelationshiptotheAPMand

PPMlifecyclesareillustratedbelow.

Figure12:ControlPhase

4.3.1.1 PlanandExecuteITInvestments

AfteraninvestmentisinitiatedintheControlPhase,itmustbeplannedandexecuted

in accordance with Commonwealth standards. IT projects that have received

Development Approval are governed by the Commonwealth Project ManagementStandard. IT contracts mustbe obtained through an approved Agency Procurement

Request(APR)andaregovernedby theVITAITProcurement:AuthorityandDelegation

Policies. The agency planning and executing the IT investment must ensure that the

business value of the IT investment is translated into concrete asset performance

measures. TheperformancemeasureswillbeassessedthroughoutthelifecycleoftheIT

investmenttoensuretheCommonwealthisreceivingthedesiredbusinessvalue. The


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ITIB has established a Commonwealth IT portfolio management tool to assist

stakeholderswithplanning,executing,anddocumentingITinvestments.

4.3.1.2 ReviewITInvestmentExecution

The Codeof Virginia requiresproper oversightand governance over the planning and

execution of IT investments. Stakeholder roles and responsibilities for projects are

documented in the Commonwealth Project Management Standard. At minimum, a

monthly review of Major IT investments is required; a monthly review of all IT

investments is strongly recommended. All Commonwealth IT investments mustbe

documentedintheCTP. TheITIBwillreviewtheperformanceofMajorITProjectsina

quarterlyupdatetotheRTIPReportthatincludes:

ITinvestment

status

as

it

relates

to

cost,

schedule

and

scope;

Significantchangessincethelastreport;

Identificationofunderperforminginvestments;

Recommendedremediationplans;

Remediationplanstatus(ifrequired);and,

Recommendationstocontinue,modifyorterminateeachinvestment.

Inaddition,theITIBreviewsupdatestotheCTPonaquarterlybasis.

4.3.1.3

Close

IT

Investments

The final requirement in the Control Phase is to close all IT investments. Major and

nonmajorITprojects,procurements,contractsandrequestsforservicemustbeclosed

outinaccordancewithCommonwealthstandardsandguidelines. Duringthispointin

theIT investment lifecycle, it

itim standard

Documents