L11: The Role of Investment Planning & Project Management Flashcards
Role of the CPIC Planning Phase
The CPIC Planning Phase is where business and technology requirements that emerge throughout the enterprise are reviewed at a preliminary level for merit, need, and identification of an association with an EA component.
Bernard, Scott A.. An Introduction to Enterprise Architecture: Third Edition (p. 192). AuthorHouse. Kindle Edition.
CPIC
Capital Planning and Investment Control (CPIC)
How can the capital planning process help support decisions on investing in future EA component upgrades or new capabilities?
Capital Planning and Investment Control (CPIC) process supports EA by planning, selecting, controlling, and evaluating investments in new or upgraded EA components. This cyclic process promotes the attainment of the following: Identification of operational performance gaps in the enterprise, Identification of new or upgraded EA components to close performance gaps, Development of business cases that consider alternatives, alignment, and value, Development and management of an overall portfolio of investments in the EA, Maximizing the value of individual investments in EA components, Encouraging a culture of learning by evaluating each completed Investment. The CPIC process operates in four distinct phases that serve to (1) standardize how requirements for technology are identified within a strategic and business context; (2) associate the technology requirement with an EA component; (3) make an investment decision; and (4) implement a solution through standardized project management practices and the EA program. The Project Management Plan (PMP) serves as the common documentation source for all phases of the CPIC process.
What is a business case for investment in EA components? What are the roles of an Alternatives Analysis, Cost Benefit Analysis, and Return on Investment calculation in the business case?
A Business Case shows the value and projected results of selecting an investment in a particular IT solution. Within a business case, one performs an Alternatives Analysis to determine if there are several viable alternatives for meeting the stated EA-related requirement(s). Identify how each alternative meets or does not meet the requirement(s). Perform a Cost-Benefit Analysis for each alternative and then determine what the Return on Investment will be (using a Net Present Value discount factor) during the lifecycle. Perform a risk analysis to identify areas of risk and mitigation strategies. Select the best alternative based on (1) strategic alignment, (2) architecture alignment, (3) ROI, (4) security solution, (5) level of risk, (7) total cost of ownership, and (7) available resources. Ensure that the rest of the PMP documentation focuses only on the selected alternative. \nDescribe roles and responsibilities in the capital planning governance process. \nGovernance processes, including CPIC, are those that provide policy and decision-making, and they should be overseen by some form of Executive Steering Committee that is comprised of the enterprise’s top executives. The CPIC process should be managed by the enterprise’s Chief Financial Officer (CFO) in collaboration with the Chief Information Officer (CIO) and LOB managers. Because CPIC is primarily a financial investment decision-making process, the CFO should lead it, but it is very important in information-centric enterprises that the CIO be a partner in the process and that these two executives effectively integrate CPIC and the EA Management process. CPIC decisions in each phase of the process should be made by an executive level Capital Planning Board (CPB) that is supported by a Capital Planning Working Group (CPWG) and an Enterprise Architecture Working Group (EAWG). In this way, CPIC decision-making has senior stakeholder involvement and the documentation and analysis activities are accomplished by subordinate groups of experts in business and technology.
