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IT Governance - Managing Portfolios, Projects, Processes, and People

Report Code: BG-0039 Date: 4/2007 By: Butler Group

For senior management, IT requires formal control from both an investment and a risk management perspective. With IT accounting for up to 50% of capital expenditure in many organizations, formal disciplines must be in place to guide investment decisions, provide visibility into progress, assess and mitigate risk, and measure the return against strategic objectives.

This report provides a thorough overview of IT governance, including:

  • A discussion of the business drivers of IT governance - risk management, compliance, and security
  • A review of the technologies that support IT governance - Project Portfolio Management (PPM), Financial Management, Enterprise Architecture and Performance Management
  • Specific steps to implement IT governance
  • An analysis of the IT governance market
  • Reviews of nine leading PPM vendors.

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Abstract:
Whether an organization views IT as a strategic capability involving significant investment, or purely as a support service to be delivered at minimal cost, the reality is that all are dependent on information systems as an integral part of many business processes.

Effective IT Governance is therefore essential to ensure that the delivery of IT services meets the requirements of the business, and policies and procedures must be in place to guide investment decisions, provide visibility into project progress, assess and mitigate risk, and measure the return against strategic objectives.

Use this report to discover:
  • How effective governance maximizes the business value of IT.
  • Why rights and responsibilities must be established for all IT decisions.
  • How to improve business and IT alignment through a joint IT Governance framework.
  • How Project Portfolio Management solutions support IT Governance, and which are the leading vendors.
  • Why IT Governance must be tailored to the different roles of IT, and to different organizational structures.
  • How to approach implementing an IT Governance initiative.
  • When standards such as COBIT and ITIL can accelerate effective governance.
  • The role of the Project Management Office in IT Governance.
  • Why an IT service catalogue improves visibility into IT costs.
  • How defining and managing IT processes is an essential part of IT Governance.


Report Overview

A brief summary of each Section of the Report is included below to provide additional information for areas that may be of particular interest:

Business Issues
This Section of the Report describes the drivers behind IT Governance, its purpose within the organization, and its key characteristics. It discusses how IT spend can be categorized into three types – Run-The-Organization, Change-The-Organization, and Innovation – and how IT Governance applies to each of these. It then looks at how performance management techniques can be applied to the IT function, examines how to use governance as the basis for business and IT alignment, and considers the range of techniques that can be applied to measuring IT benefits. Finally, it studies the key areas of risk management, security, and compliance, and discusses how IT Governance can best address these requirements.

Technology Capabilities
This Section of the Report details the types of technology that can be used to support IT Governance initiatives, combinations of which are found within PPM solutions. The technology areas discussed include Portfolio Management, Project Management, IT Process Management, Financial Management, Resource Management, IT Performance Management, IT Investment Management, Change Management, and Enterprise Architecture. There is also an analysis of reporting and deployment options.

Methods and Implementation
This Section considers the practical aspects of implementing an IT Governance program. It begins by talking about the relationship between the structure of the IT function and the governance requirements, and then looks at some of the popular governance and IT management frameworks that can form part of an IT Governance program. It looks at the role of standards within IT, and finally provides advice on the specific steps required to begin implementing an IT Governance initiative.

Market Analysis
The IT Governance tools market is currently in a state of rapid evolution, so this Section looks at the market dynamics, and then describes the detailed strategies of the leading players. It follows on to predict how the market is likely to evolve in future, and looks at some of the newer developments in this space.

Tables
This Section provides a detailed side-by-side feature comparison of nine leading PPM solutions, with over 300 data points on each product. It then provides a graphical view of each solution’s capabilities, and using Butler Group’s Market Lifecycle Rating methodology, compares each vendor’s standing in terms of product selection, both now and for the predicted position over the next five years.

Technology Audits
This Section contains detailed Technology Audits of nine leading PPM solutions:
  • Borland Tempo
  • Business Engine BEN
  • CA Clarity PPM
  • Compuware Changepoint
  • HP Software PPM Center
  • IBM Rational Portfolio Manager
  • Planview Enterprise
  • Primavera
  • Serena Mariner
Vendor ProfilesThis Section contains product and vendor profiles on a further 14 solutions that address important aspects of IT Governance.
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