Enterprise Value Management
EVM prevents loss of value from business investments through linking them to planned organizational strategies. Improvement of value can be achieved through new processes, new services and behaviour change in staff and services to enhance better prospects in the corporate business. The components are as follows:
| 1. Portfolio Management - | Senior management will decide on the investments of the programs and projects that deliver best values. Considerations involved ROI, alignment with current strategies, resource constraints and risk of portfolio. |
| 2. Program Management - | Ways of managing groups of related projects that are designed to achieve business strategy. Obtain stakeholder agreement on what the strategy is about and how to implement it. Identify and track the benefits to be achieved. Monitor internal and external environment for any changes that may impact on the strategy. |
| 3. Project Management - | Focus on the delivery of agreed scope within the constraints imposed. |
| 4. Architecture Management - | Understanding business organization model and know how it can leverage improvements and how it can constrain new strategies. |
| 5. Asset Management - | Knowing how value is created by existing assets both directly and indirectly. In the past, physical assets were the main focus, but now organizations realize the value in intangible assets like IP, brands (reputation), human resources and information systems. |
Governance is a key process that binds all the above together. Governance involves linked processes, a support office (EPMO – Enterprise Program Management Office, VMO – Value Management Office), proper training, clear roles and responsibilities, and accountability for achieving results from investments. It will also include measures of how system is performing.
Implementing EVM involves considerable change in focus, development time and learning good practices that are adapted to the organization. Management selects, monitors investments and holds people accountable for their performances.
Benefits of implementing EVM include realizing strategy outcomes, creating focus on achieving results, and establishing a rational and transparent process of how organization invests its funds.
http://www.fujitsu.com/us/news/publications/books/ip.html
http://www.zdnetasia.com/news/business/0,39044229,61977992,00.htm
