CobiT definition:
A framework is established and maintained to manage IT-enabled investment programmes and that encompasses cost, benefits, prioritisation within budget, a formal budgeting process and management against the budget. Stakeholders are consulted to identify and control the total costs and benefits within the context of the IT strategic and tactical plans, and initiate corrective action where needed. The process fosters partnership between IT and business stakeholders; enables the effective and efficient use of IT resources; and provides transparency and accountability into the total cost of ownership (TCO), the realisation of business benefits and the ROI of IT-enabled investments.
Control over the IT process of
Manage the IT investment
that satisfies the business requirement for IT of
continuously and demonstrably improving IT’s cost-efficiency and its contribution to business profitability with integrated and standardised services that satisfy end-user expectations
by focusing on
effective and efficient IT investment and portfolio decisions, and by setting and tracking IT budgets in line with IT strategy and investment decisions
is achieved by
- Forecasting and allocating budgets
- Defining formal investment criteria (ROI, payback period, net present value [NPV])
- Measuring and assessing business value against forecast
and is measured by
- Percent of reduction of the unit cost of the delivered IT services
- Percent of budget deviation value compared to the total budget
- Percent of IT expenditure expressed in business value drivers (e.g., sales/services increase due to increased connectivity)
Control objectives:
PO5 Manage the IT Investment
PO5.1 Financial Management Framework
PO5.2 Prioritisation Within IT Budget
PO5.3 IT Budgeting
PO5.4 Cost Management
PO5.5 Benefit Management
Check out the links for details on the control objectives.
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