Capital Planning and Investment Control Process

Capital Planning and Investment Control (CPIC) are structured program integrated to manage Information Technology investments to ensure the business needs are supported, risks are minimized and returns are maximised throughout the investment cycle.

The CPIC investment management takes three phases; select, control and evaluation of the Information Technology investment. The select Phase is where the investment analyses are conducted and the choosing of the IT projects that best support the missions of the enterprises are done it involves a pre-selection where the IT initiatives are proposed and the investments are assessed by the executive decision makers to assess if sufficient benefits can be made from the demonstrated investments. The control phase ensures there is quality control and reviews of the investment to enhance consistency. In the evaluation phase, comparisons of the results from the implemented projects are done to measure the investment performance.

The purpose of CPIC in Information Technology is to: help establish policies and responsibilities for performing IT, clarify Information Technology management and the capital asset management and serve as a management guide in Information security matters.

CPIC process can yield benefits such as increase in the capacity to achieve missions and objectives, Support and integration with Enterprise Architecture efforts, framework for balancing the potential benefits of costs and risks, prioritize the setting of IT protocols and setting of appropriate It resource shift based on the priorities and provision of clear alignment of initiatives of It goals and objectives.

The selection phase help ensure there are the right mix of investments in the IT investment portfolio that support the organization mission from which the investments are analyzed and reviewed and a favorable one is chosen. A good Business case analysis is one that incorporates both financial and non-financial factors to address issues and...