Reflective of ISACA’s Val IT framework; value is complex, contextual, and dynamic. Influencing value is individual perception. In regard to entity employees, the essential quality of value varies for different organizational formations. For-profit organizational formations tend to view value in financial terms and can simply be determined by return-on-investment. Contrastingly, not-for-profit organizational formations tend to derive value in non-financial terms and can be ascertained by a complex combination of considerations. Yet, IT value should reflect an improvement in the entity’s actual performance versus expected performance and/or the net increase in revenues available to provide goods or services, based on the investment.
“View Part I of the Not-for-profit Value Delivery series here”