Larastri Kumaralalita, Achmad Nizar Hidayanto, Dina Chahyati
Laboratory of IT Governance
Compliance Analysis of IT Investment Governance
Faculty of Computer Science, Universitas Indonesia
Email: {larastri.k, nizar, dina}@cs.ui.ac.id
Practices to Val IT 2.0 Framework in Indonesian
Commercial Bank: The XYZ Bank Case Study

Abstract—Company becomes more concern on
the role of information technology (IT) as enabler
of business. To enhance its performance, it needs to
improve service quality, for example by increasing
IT investment. This paper aims to analyze the
practice of IT investment governance in XYZ Bank
and sees its compliance with Val IT 2.0 in order to
improve the current practices. Our findings show
that project management to run IT investment
initiatives has well established and is capable to
help the company to achieve its objectives.
Moreover, our analysis also show that almost all
practices in the current framework can be mapped
into Val IT 2.0. It shows a fact that although XYZ
Bank has less awareness on IT investment
governance framework, its current practices
already meet the criteria of such a good IT
investment governance.
I. INTRODUCTION
N owadays information technology is not only as
support for business but also as enabler. With IT
as enabler, companies need to increase investment in
IT. Mentioned by Gartner, worldwide IT spending
grows 5.1 percent in 2011 with total to be $3,6 billion
[6]. Therefore in order to increase the value of IT
benefits, company may increase their investment in
IT.
Value of IT benefits is not only tangible but also
intangible. According to Nelson, the measurement of
intangible benefits is more difficult to be quantified
[13]. Craig Symons reviewed four IT value
methodologies that were developed during the past
few years and employed in actual IT investment
analysis. Those IT value methodologies are Business
Value Index (BVI), Total Economic Impact (TEI),
Value IT (Val IT), and Applied Information
Economics (AIE). The comparison of the four
methodologies can be seen in Table 1.
In this paper, we take one as framework to more
thoroughly measure value of IT as part of IT
governance. Val IT is also best used for company
which has used Control Objective for Information and
related Technology (COBIT) as framework for its IT
Governance [14].
TABLE I
COMPARISON OF METHODOLOGIES
Framework Name Characteristics

Business Value the simplest
Index (BVI) well documented and more
qualitative in its assessment of
benefits and risk
Total Economic values flexibility
Impact (TEI), add more rigor around quantifying
intangible benefits, risk, and value
of flexibility or future capability
resulting from IT investments
Value IT takes a governance approach
(Val IT) organization that have
implemented COBIT, may benefit
from adopting Val IT
Applied Information offers the greatest rigor
Economics (AIE) for organization which requiring
more quantitative rigor
IT governance has been implemented in some of
enterprise-scale companies, especially in banking
sector which depends greatly on IT, including the
object of our research, the XYZ Bank. The XYZ Bank
already has adopted COBIT framework with maturity
level of 4 in 2008. Based on this evidence, we
consider that XYZ Bank is a suitable place to assess
its compliance with Val IT.
In Indonesia, the use of IT investment governance
framework is still rare including in banking industry.
Although most of them have adopted project
management framework, they only focus on the
financial profit of IT investment, not to IT investment
values as a whole that comprises of tangible and
intangible values. This fact shows that their awareness
on IT investment is not as expected.
Therefore, this paper purposely tries to look up how
far the practice of IT investment governance at one
sample of Bank in Indonesia, XYZ Bank, using the
newest IT investment framework, Val IT 2.0. We also
interested to see the compliance of its current practices
to Val IT 2.0. We believe that although the XYZ Bank
has not implemented IT investment framework yet, it
has a good chance to be ready for using the Val IT 2.0.
At last, we also give recommendation to the XYZ
Bank to improve its current IT investment practices.
II.THEORETICAL FOUNDATION
A. Enterprise Governance of IT
Based on Van Grembegen [7], Enterprise
Governance of IT is the shift in definition from IT
governance to be focusing on the business
involvement. The shift is due to the concept of IT
governance, that emerge in late 1990s, merely
 focuses on ‘IT’ in the naming of concept, so it
mainly stays as discussion within the IT area.
Unfortunately, the responsibility of IT may also
situate at the business side. IT is intended to give
business value from IT investment that cannot be
realized by IT, but will be always be created at
business side[7].
Therefore, Enterprise Governance of IT is an
integral part of corporate governance and
addresses the definition and implementation of
processes, structures, and relational mechanisms in
the organization that enable both business and IT
people to execute their responsibilities in support of
business/IT alignment and the creation of business
value from IT-enabled business investments[7].
In order to measure how this concept can be
implemented in company, there are two frameworks
provided, which are COBIT and Val IT. COBIT
focuses on IT processes, while Val IT addresses the
IT-related business process. COBIT is a freely
available industry framework that describes a set of
best practices for management, control and
assurance of information technology, and organizes
them around a logical framework based on 34 IT
processes [7]. Val IT is a relative new framework
issued by the IT Governance Institute in 2006,
which mainly focuses on the business
responsibilities in IT value creation. Val IT is
complementary to COBIT and follows the same
structures and templates as provided in the COBIT
manuals [7].
B. Val IT
Val IT is purposed to help enterprise in
optimizing the realization of value from IT-enabled
investments at an affordable cost, and with a known
and acceptable level of risk. With effective
application of principles, processes, and practices of
Val IT, organization may able to [11]:
 Increase the understanding and transparency of
cost, risks, and benefits which may result in much
better informed management decisions.
 Increase the probability of selecting investment
that have the potential to generate the highest
return.
 Increase the likelihood of success of executing
selected investment such that they achieve or
exceed their potential return.
 Reduce costs by not doing things they should not
be doing and taking early corrective action on or
terminating investments that are not delivering to
their expected potential.
 Reduce the risk of failure, especially high-impact
failure.
 Reduce the surprises relative to IT cost and
delivery, and in so doing increase business value,
reduce unnecessary costs, and increase the overall
level of confidence in IT.
More information about Val IT is provided below,
regarding definition, domain, processes, and goals.
1) Definition: Val IT consists of set of guiding
principles and a number of processes conforming to
those principles which are further defined as a suite
of key management practices. The relationship
amongst these principles, processes, and practices
provided in Fig 1.
Figure 1 The Relationship of Principles, Processes, and
Practices [12]
Other several important key definitions in the context
of Val IT are:
 Value is the result that expected from IT investment
financially, non-financially, or both of them[15].
 Full economic life cycle is economic life cycle of
investment program that covered the stage of build,
implement, operate, until retire when the value is
gained.
 Portfolio is groupings of ‘object interest’
(investment programmes, IT services, IT projects,
other IT assets, or resources) managed and
monitored to optimize business value.
 Programme is a structured grouping of inter-
dependent projects that are both necessary and
sufficient to achieve a desired business outcome and
create value.
 Project is a structures set of activities concerned
with delivering a defined capability (that is
necessary but not sufficient to achieve a required
business outcome) to the enterprise based on an
agreed-upon schedule and budget.[12]
2) Val IT Principles [12]:
 IT-enabled investment will be managed as a
portfolio of investment.
 IT-enabled investment will include the full
scope of activities required to achieve business
value
 IT-enabled investment will be managed
through their full economic life cycle
 Value delivery practices will recognize there
are different categories of investment that will
be evaluated and managed differently.
 Value delivery practices will define and
monitor key metrics and respond quickly to
any changes or deviations.
 Value delivery practices will engage all
stakeholder and assign appropriate
accountability for the delivery of capabilities
and the realization of business benefits.
 Value delivery practices will be continually
monitored, evaluated, and improved.
3) Domains: To fulfill the Val IT value management
goal of enabling the enterprise to realize optimal value
at affordable cost with an acceptable level of risk from
IT-enabled investment, the Val IT principles need to
be applied within three domains [12]:
 Value Governance: the goal is to ensure that value
management practices are embedded in the
enterprise, enabling it to secure optimal value from
its IT-enabled investments throughout their full
economic life cycle.
 Portfolio Management: the goal is to ensure that an
enterprise secures optimal value across its portfolio
of IT-enabled investment.
 Investment Management: the goal is to ensure that
enterprise’s individual IT-enabled investment
contributes to optimal value. There are three key
components of investment management, they are:
o Business case: is used to select investment
program to be executed and manage the
execution. Business case should be updated in
the whole of full economic life cycle to support
the implementation of investment programme
including the benefit realization.
o Programme management: govern all process
which support the execution of program.
o Benefits realization: the set of tasks required to
actively manage the realization of programme
benefits.
Each domain consists of some processes which are
discussed in the following point.
4) Processes: is a collection of interacting
activities undertaken in accordance with management
practices. The total of processes in the three Val IT
domains are 22 processes. Those processes are defined
specifically then called key management practices
(while in COBIT is called the control objective).
Those processes in each domain are:
 Value Governance (VG)
1. VG1 Establish Informed and Committed
Leadership
2. VG2 Define and Implement Processes
3. VG3 Define Portfolio Characteristics
4. VG4 Align and Integrate Value Management
with Enterprise Financial Planning
5. VG5 Establish Effective Governance
Monitoring
6. VG6 Continuously Improve Value
Management Practices
 Portfolio Management (PM)
1. PM1 Establish Strategic Direction and Target
Investment Mix
2. PM2 Determine the Availability and Source of
Funds
3. PM3 Manage The Availability of Human
Resources
4. PM4 Evaluate and Select Programmes To
Fund
5. PM5 Monitor and Report on Investment
Portfolio Performance
6. PM6 Optimise Investment Portfolio
Performance
 Investment Management (IM)
1. IM1 Develop and Evaluate The Initial
Programme Concept Business Case
2. IM2 Understand The Candidate Programme
and Implementation Options
3. IM3 Develop The Programme Plan
4. IM4 Develop Full Life-Cycle Costs and
Benefits
5. IM5 Develop The Detailed Candidate
Programme Business Case
6. IM6 Launch and Manage The Programme
7. IM7 Update Operational IT Portfolio
8. IM8 Update The Business Case
9. IM9 Monitor and Report on The Programme
10. IM10 Retire The Programme
To understand more of the relationship between
processes in each domains the explanation is provided
in Fig 2.
Value
VG1, VG2,
Governance
(VG)
VG3, VG4
VG5 dan VG 6
Portfolio
Management
PM1, PM2,
PM3
PM4 PM5 dan PM6
(PM)
IM1, IM2, IM3,
IM6 IM10
IM4, IM5
Investment
Management
(PM)
IM7, IM8 IM9
Figure 2 The Relationship of Processes
5) Goals: Val IT defines goals in three level, they are:
 Domain (like VG, PM, and IM) goals that
define what business expects from each Val IT
domain and how to measure it.
 Process goals define what the Val IT process
must deliver to support its domain’s objectives.
 Activity goals that establish what needs to
happened inside each process to achieve its
required performance.
Domain goals are achieved by one of the interaction
of number of processes. Each process goals require a
number of activities to establishing activity goals. This
cascade of goals in Val IT is different from the
cascade presented in COBIT. While COBIT’s cascade
runs from IT goals to process goals to activity goals,
Val IT‘s cascade runs from Val IT domain goals
(instead of IT goals) to process and activity goals.
C.Related Works
Our previous study [8] was focus on the support
level of IT in governmental organization by using
standard of Balanced Score Card and U.S. GAO. We
also conducted research on human aspect [5, 9] related
to IT as well as technology adoption [10]. More closer
work related to our research was conducted by ISACA
through the case study at ING Bank which is highly
regulated and known for its IT intensity[11]. This case
study is called “Enterprise Value Governance of IT
Investment, The ING Case Study”. In that case study,
explain how ING has applied Val IT’s management
processes in value governance, portfolio management,
and investment management. As result, not
surprisingly, it has developed a number of
correspondingly sophisticated and mature processes
for managing its use of IT[11].
The framework used in this case study is the first
version of Val IT which is issued in 2006, Val IT 1.0.
The analysis described processes in each domain
based on current practice in ING Bank using Val IT
1.0. Therefore, in this paper, the research is done by
using the newest edition of Val IT that is issued in
2008, Val IT 2.0, in one of Indonesian Bank (with
anonymous name XYZ Bank).
III. METHODOLOGY
Data in this research is obtained using qualitative
approach. This approach is considered appropriate to
map the current IT investment practices in XYZ Bank
based in Val IT 2.0 framework. The object of this
research is the XYZ Bank that relies heavily on IT for
its operations. Moreover XYZ is chosen because it has
been using the COBIT for its IT governance.
Currently, XYZ has reached level 4 according to
COBIT maturity level.
For the framework, researchers chose the most and
newest IT investment framework which is Val IT 2.0.
Val IT has very close relationship with COBIT
framework that has been adopted by XYZ and it can
measure value of IT as parts of IT governance. Both
frameworks also exhibit similar structure, thus it is
expected that XYZ bank will be easier in
understanding the structure of Val IT.
The data is collected by interviewing respondents
and observing documents. The total of interviews
question are 129 items based on process and activities
goal of the three Val IT’s domains (Value
Governance, Portfolio Management, and Investment
Management). The questions were asked to four
interviewee based on their responsibilities in XYZ
Bank. Those interviewees are:
(1) Vice President IT Planning, Budgeting,
Architecture Department with. The interview is
focused on company’s profile, investment flow, and
Val IT’s domain in Value Governance (VG) and
Portfolio Management (PM).
(2) Assistant Vice President IT Planning, Budgeting,
Architecture Department who is involved in IT
Budgeting. The interview is focused on project
budgeting.
(3) Assistant Vice President IT Planning, Budgeting,
Architecture Department, who is involved in Human
Resource. The interview is focused on human resource
in project.
(4) Senior Manager Planning, Budgeting, Architecture
Department. The interview is focused on Val IT’s
domain in investment management (IM).
Documents observed in this study include
company’s profile and organization structure, IT
department’s profile and organization structure,
strategic IT policies, IT investment management
processes, IT governance, and corporate annual report.
Results of interview and document studies are mapped
to Val IT to check the completeness and conformity
with the activity and process goals from all process in
all three domains.
IV. COMPANY’S PROFILE
A. Description
XYZ Bank is a commercial bank that has the
biggest asset in Indonesia. It has more than 22.909
employees that are spread among 1.096 domestic
branches, seven overseas branches. It also serves
4.996 ATM, 12.666 links ATM, and 10.104.159
account of third parties[4].
B. Organizational Structure
The IT Investment governance in the XYZ Bank
involves the contribution both from IT and business.
The involving parties are :
 Corporate Banking, Commercial & Business
Banking, Micro & Retail Banking Directorate,
and Consumer Finance: units that become product
owner of investment (party who proposed
investment and also become the party who owned
the realization of investment’s benefit).
 Human Resource & Compliance Directorate:
through each representative in each directorate,
named Human Resource Strategic Business Unit
(HR-SBU), who supply human resource for each
project team based on quantity and quality
needed.
 Strategy & Performance Group: accountable for
the management of investment program by
selecting the project prioritization process based
on the financial side, determine the overall
investment budget, and oversee the use of the
budget for the whole project.
 Change Management Office (CMO): selecting the
project through project prioritization process
based on compliance with business strategy,
report on progress through post-implementation
review.
 Risk Management Directorate: to assist in the
calculation of project risk.
The activities of IT investment governance itself are
technically managed by one of the group in IT
directorate, named IT Planning, Architecture, and
Business Continuity Plan Group, especially the IT
Planning Department.
C.Investment Flow
In general, controlling budget and IT investments is
done by two mechanisms, through IT Strategic Plan
(ISP) for long-term programme and IT Annual Plan
for short-term programme.
For the long-term programme, the ISP is prepared
by IT Planning group then proposed to IT Steering
Committee for approval. ISP is driven by business
strategy, standard and regulation, technology trend
and current IT Assessment. ISP is consist of
prioritized IT strategic which will run for around 4 up
to 5 years.
For the short-term programme, Annual IT Plan is
based on ISP which is prepared by IT Group and also
related business units. It consists of collected user
demand with feasibility analysis. This plan will run
around one year.
D.Project Management
Initiatives that have been approved as mentioned
earlier, executed as projects. In project management,
the company uses IT Project Management
Framework. This framework is named System
Development Life Cycle (SDLC) which is an
aggregate between the adoption of Project
Management Body of Knowledge and company’s
current framework[1].
V. ANALYSIS RESULT
One of our objective is to see the current practice of
IT investment management in the XYZ Bank and map
it to the Val IT 2.0 to see its compliance. The
following provides our mapping results for each
processes in the three IT Val domains. Based on this
mapping result, we give recommendation for the XYZ
Bank to improve its current practices.
A. Value Governance (VG) Domain
1) VG1 Establish Informed and Committed
Leadership: The executives role is played through IT
Steering Committee (shortly IT Committee) and board
meeting. The composition and responsibilities of IT
Committee is committed in Director Letter of
Decision in 2010 about IT Steering Committee [3]. IT
Committee’s responsibility mainly approves the IT
Strategic Plan and any strategic policies, then ratified
by the board.
2) VG2 Define and Implement Processes:
Company uses IT Project Management Framework, IT
Annual Operating Plan, and COBIT. IT Project
Management Framework is used for managing the
project from beginning to end. IT Annual Operating
Plan is used for the selection of IT investment
initiatives, and COBIT is used for IT governance.
3) VG3 Define Portfolio Characteristics: Bank
XYZ defining characteristics of a project based on the
focus of the segment and focus directorate. The focus
of the segment consists of wholesale, finance
payments, retail payments, and corporate centers and
self service. Meanwhile, the focus of the directorate is
the division of the segments to the directorate that is
responsible in its implementation. Company has not
used the portfolio as a whole but can be applied as a
segmented project portfolio.
4) VG4 Align And Integrate Value
Management with Enterprise Financial Planning: The
process to harmonize and integrate value management
with enterprise financial plan, XYZ Bank has begun to
align and integrate with the value of financial
governance practices with a focus on specific business
segments. However, alignment is still a funding
allocation per project for the implementation of
investment initiatives so that only projects that
provide optimum value is executed. In addition a
feasibility analysis, business case already has its own
standards of appropriate IT Annual Operating Plan.
Financial planning projects included in the feasibility
study on the Cost and Benefit Analysis [2].
5) VG5 Establish Effective Governance
Monitoring: XYZ Bank defines governance
monitoring through their respective roles in
governance. Periodic monitoring is based on the report
as measured by key performance indicator (KPI)
which have been determined for each directorate.
6) VG6 Continuously Improve Value
Management Practices: XYZ Bank has not applied
management practice effectively. But the company
has begun to improve the efficiency of project
management, one of them by sharing knowledge
between project managers. In addition the company to
revamp the organizational structure to improve
cooperation between business units and IT in project
management.
After getting each process conclusion, we can see
how the VG domain is achieved. As mentioned
earlier, VG domain goal is to ensure that the practice
of value management in the company has been there
so the company can maintain an optimal fixed value
generated by IT investments since the proposed until
retirement.
Based on the six points, it can be concluded that
XYZ Bank has begun to practice value management
but not yet thoroughly. The company already has
policies through IT Annual Operating Plan that
governs the process of prioritization of IT investments
to gain the initiative that delivers optimal value.
B. Portfolio Management (PM) Domain
1) PM1 Establish Strategic Direction and
Target Investment Mix : XYZ Bank uses the COBIT
framework to ensure the contribution of IT to business
goals can be realized. In addition, the IT Committee
carries out its role to ensure the ISP with the company
has aligned its strategic objectives. Meanwhile, the
investment mix has not been determined specifically
but aspects of the investment considerations are listed
in the feasibility study.
 2) PM2 Determine The Availability and
Sources of Funds: Fund management at XYZ Bank is
the responsibility of the SPM. Regarding the IT
investment, SPM governs the allocation of funds for
each project based on approval of a board meeting.
Additional funding sources have been identified by
the company and have been used as an alternative to a
new capital for investment. In addition, transparency
also has been realized through the financial statements
that are routinely reported and easily accessed by
interested parties.
3) PM3 Manage The Availability of Human
Resources: Management of human resources is
handled by Human Resource Directorate. This
directorate has a representative in each other
directorates called Strategic Business Units Human
Resource (HR-BSU). HR-SBU assists companies in
getting the human resources for daily functions and
projects. So far the making of project team members is
still done informally. The XYZ makes predictions on
human resource requirements based on business
strategy, for example IT directorate uses IT Strategic
Plan (ISP), which is derived from business strategy, to
predict the quantity and quality of human resources
for four years period.
4) PM4 Evaluate and Select Programmes To
Fund : XYZ Bank uses a feasibility study and cost &
benefit analysis. This process is part of the
prioritization process in the IT Annual Operating Plan.
The funds include the cost of starting IT project and
the cost of maintenance as the project’s product is
implemented. The starting cost is billed to the unit
business who owns the project, while the maintenance
cost becomes the responsibility of IT directorate.
5) PM5 Monitor and Report on Investment
Portfolio Performance: In monitoring and reporting
on investment portfolio performance, XYZ Bank
monitors and reports the performance of an
investment portfolio in the form of supervision carried
out weekly, monthly, and quarterly.
IT Committee sees the achievement of strategic
projects to the original purpose of the IT Committee
meets in every three months. Program Committee,
sees the achievement of the project which they are
responsible every month. While the PMO tests the
performance of the overall project are based on
weekly reports from the project admin. To control the
deviation, as the initial stage, the program committee
can provide direction. However, if there is unresolved
issues, it can be escalated to the IT Committee or any
meeting of directors.
6) PM6 Optimise Investment Portfolio
Performance: XYZ Bank only funds projects that give
optimal value. In addition, the company provides early
action if it detects a decreasing in IT value by
examining the causes and immediately fixing them.
After getting conclusion of each process, we can see
how the PM domain is achieved. As mentioned
earlier, the goal of domain is to ensure optimal value
generated by IT investment portfolio.
Based on these six points, it can be concluded that
XYZ Bank has implemented a segmented project
which was implemented as a portfolio, but adoption
has not been thorough. The initiative is run in the form
of projects carried out by IT Project Management
Framework. In each frame has been determined the
information, documents, and sign off on whatever is
needed since the project began to run up to the live
implementation.
C.Investment Management (IM) Domain
1) IM1 Develop and Evaluate The Initial
Programme Concept Business Case : In developing
and evaluating the program initiation of a business
concept, XYZ Bank has so far carried out based on
the content of the feasibility study. For evaluation, the
company wanted to develop in the direction of risk
and cost benefit calculations in the Val IT to produce a
more efficient and wise initiation.
2) IM2 Understand The Candidate
Programme and Implementation Options : In
understanding the candidate program and
implementation options for the achievement of
business objectives, the XYZ Bank has established
forms of communication with other stakeholders to
develop the idea of investment initiatives.
Furthermore, the choice of implementation is done
through prioritization.
IM3 Develop The Programme Plan: XYZ Bank
has established consultation with stakeholders such as
the IT unit, the other business units, and field director
for the preparation of the project plan as outlined in
the feasibility study document. The company gets
enough information from the documents regarding
risks, costs, and profit to help controlling costs and
risks of the business benefits.
3) IM4 Develop Full Life-Cycle Costs and
Benefits: Cost and benefits with risk considerations
are listed on the Profit / Loss, Cost & Benefit Analysis
and Risk Based Analysis (including mitigation). All
the points are part of the feasibility study.
4) IM5 Develop The Detailed Candidate
Programme Business Case: XYZ Bank uses
feasibility study and project charter (to initiatives that
have been approved by the prioritization team) that
can be said to be a business case of project initiatives.
Development is done by outlining the details of the
benefits, costs, and risks in the feasibility study so that
comparisons can be made between initiatives of
projects. Development of detailed project charter also
performed on the activity presented at the high level
project plan.
5) IM6 Launch and Manage The
Programme: The XYZ Bank’s project has been
documented by the project administrator then
collected by the PMO who then report it to the board
meeting. Reporting of strategic projects in the form of
weekly presentations, while the less strategic projects
to be reported in full only at the time of closure. In the
event of deviation, it will be directed to the program
manager. If it is not finished yet, it will be escalated to
the program committee or higher IT Committee or a
board meeting, if it is necessary.
6) IM7 Update Operational IT Portfolios:
Bank XYZ has not implemented it because the
company has not used the Bank's portfolio. It is due to
XYZ Bank is still project-based. Information on the
project charter is always updated as additional needs
sometimes arise. In addition the project progress is
reported weekly to the PMO to always give the project
progress.
7) IM8 Update The Business Case : The XYZ
Bank updates project charter regularly by consulting
to the stakeholders especially the product owner.
8) IM9 Monitor and Report on The
Programme: Boards and executives already
understand the performance and capabilities for the
project and receive a progress report written during
the project closure. In addition, the Change
Management Office executes post implementation
review to assess the implementation of the project,
and then reports the result to the board and the
executive.
9) IM10 Retire The Programme: The XYZ
Bank dismisses projects that have achieved the
expected results or no longer give benefits according
to the standard in IT Project Management Framework.
The business unit will propose the dismissal of the
project if the project is no longer required, functions
or benefits is already covered by other projects too, or
desired outcomes have been achieved. The proposal is
reported to the IT committee or board meeting. If the
project is closed then the project team is disbanded
and maintenance responsibilities are handed over to IT
Operations.
After getting each process conclusion, we can see
how the IM domain is achieved. As mentioned before,
the goal of IM domain is to ensure every IT
investment contributes optimum value.
Based on these ten points, it can be concluded that
the company has used two approaches; the feasibility
study approach that is based on IT Annual Operating
Plan and the project charter approach that is based on
the IT Project Management Framework. Company
uses feasibility study to ensure the feasibility of
proposed IT initiative to be able to earn optimal value.
Meanwhile, the project charter is used for ongoing
projects to monitor and update information so that
monitoring will be easier.
D. Summary of Analysis
Based on our analysis to the three domains, it
shows that XYZ company may run its IT investment
aligning with their own goal. They use framework
related to project management to manage approved IT
investment initiatives. However, it is found that the
company is not really concern on values from their
investment, instead of profit. As long as they can
obtain the profit, then the values of investment is no
longer important.
On the other hand, it also shows that the current
condition from the IT organization structure and
policy is settled enough. In fact, the XYZ Bank has
achieved score of 4 in COBIT maturity level. Having
this evidence, we believe that XYZ Bank can easily
adopt Val IT 2.0 to govern its IT investment.
E. Recommendation
Based on the mapping of the three domains, we see
that there are some aspects that we think can be
optimized in order to achieve better compliance with
Val IT 2.0 framework. Below are summary of our
recommendation for XYZ Bank to improve its IT
investment management practices:
1.Using a segmented project as a portfolio (VG3).
2.Using a business case (IM1).
3.Recalculated the ROI after the implementation of
investment projects (IM6).
4.Applying a rotation system with a more
systematic and more intensive training (PM3).
Once the XYZ Bank implements those steps, it is
expected that they are ready enough to adopt IT Val
2.0 framework.
VI. CONCLUSION
The overall objective of the Val IT is enabling the
company to keep the resulting optimal value from IT
investments at a cost that can be met and the level of
acceptable risk. Based on the summary conclusions of
the three domains, the XYZ bank has made several
efforts to maintain the optimal value from IT
investments by using a framework in Annual
Operating Plan, namely IT Project Management
Framework. In addition, the company has to consider
the costs and risks in selecting IT investments using
the feasibility analysis.
But the company has not been able to see the
overall connectivity of the project; the effects of
changes to IT infrastructure projects are more
comprehensive. Also, it would be better if the
company can calculate the return from IT investments
that will improve the quality of governance of IT
investments.
Based on this evidence, it shows that although XYZ
Bank has not implemented Val IT 2.0, almost all of its
current IT investments practices have complied with
Val IT 2.0 framework. This finding implies that the
XYZ Bank actually needs a little effort in order to
adopt Val IT framework. It is expected that by
adopting such IT investment standard, the XYZ Bank
has better IT investment governance.
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