PO 05 Manage the IT investment

focuses on

effective and efficient IT investment and portfolio decisions

setting and tracking IT budgets in line with IT strategy and investment decisions

is controlled by

PO05.1 Financial Management Framework Establish and maintain a financial framework to manage the investment and cost of IT assets and services through portfolios of ITenabled investments, business cases and IT budgets.

PO05.2 Prioritisation Within IT Budget Implement a decision-making process to prioritise the allocation of IT resources for operations, projects and maintenance to maximise IT´s contribution to optimising the return on the enterprise´s portfolio of IT-enabled investment programmes and other IT services and assets.

PO05.3 IT Budgeting Establish and implement practices to prepare a budget reflecting the priorities established by the enterprise´s portfolio of IT-enabled investment programmes, and including the ongoing costs of operating and maintaining the current infrastructure. The practices should support development of an overall IT budget ...

PO05.4 Cost Management Implement a cost management process comparing actual costs to budgets. Costs should be monitored and reported. Where there are deviations, these should be identified in a timely manner and the impact of those deviations on programmes should be assessed. Together with the ...

PO05.5 Benefit Management Implement a process to monitor the benefits from providing and maintaining appropriate IT capabilities. IT´s contribution to the business, either as a component of IT-enabled investment programmes or as part of regular operational support, should be identified and documented in a business ...

is part of

Plan and Organise (PO) covers strategy and tactics, and concerns the identification of the way IT can best contribute to the achievement of the business objectives.

The realisation of the strategic vision needs to be planned, communicated and managed for different perspectives.

A proper organisation as well as ...

can be mapped to

[06.4] Budgeting and accounting for IT services Objective: To budget and account for the cost of service provision.

NOTE In practice, many service providers will be involved in charging for such services. However, since charging is an optional activity, it is not covered by the standard.

Financial Management process The Function and Processes responsible for managing an IT Service Provider’s Budgeting, Accounting and Charging Requirements.

supports

Ensure that IT demonstrates cost-efficient service quality, continuous improvement and readiness for future change

Ensure transparency and understanding of IT cost, benefits, strategy, policies and service levels

Improve IT´s cost-efficiency and its contribution to business profitability