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Commonwealth
of
Virginia
InformationTechnology
Resource
Management
Standard
for
INFORMATIONTECHNOLOGY
INVESTMENTMANAGEMENT
VirginiaInformationTechnologiesAgency
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InformationTechnologyInvestmentManagementStandard ITRMStandardCPM51600
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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)
CodeofVirginia,2.22010
(AdditionalpowersofVITA)
CodeofVirginia,2.22017
(Powers
and
duties
of
the
VITA
Division
of
Project
Management)
CodeofVirginia,2.22014
(Submission of information technology plans by state
agencies and public institutions of higher education;
designationoftechnologyresource.)
CodeofVirginia,2.22015
(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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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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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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Provide ongoingassistance and support to state
agencies and public institutions of higher
education in the development of information
technologyprojects;
Review information management and
information technology plans submitted by
agencies and public institutions of higher
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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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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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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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