Use of Information Technology Investment Management to Manage State Government Information Technology Investments

The expenditures of funds on IT has continued to expand and a significant proportion of the expenditures are hidden, unaccounted for, or never evaluated in terms of the business value derived from the expenditure. This chapter focuses on the methods and means of creating a linkage between business requirements and the IT investments that can address those requirements. An ITIM framework is proposed, which addresses three key elements of ITIM: what decisions are to be made, who should make the decisions, and how decisions are to be made and monitored. ITIM is a management process that provides for the identification (pre-selection), selection, control, and evaluation of business driven IT investments across the investment lifecycle. ITIM uses structured processes to minimize risks and maximize return on investments. Additionally, a high-level ITIM implementation plan is discussed.