UTILIZING THE VAL IT 2.0 FRAMEWORK TO ASSESS THE EFFECTIVENESS OF INFORMATION TECHNOLOGY INVESTMENTS FOR IMPLEMENTATION OF THE E-PROCUREMENT SYSTEM IN PT XYZ LIFE INSURANCE

Abstract

Investments made by business organizations in the field of Technology and Information are a form of investment that is not measurable when the return on investment will be achieved if it is not accompanied by an appropriate IT investment utilization strategy. PT XYZ Insurance has implemented digital transformation in several of the company's operational activities. The Procurement Division at PT BNI Life Insurance has used the e-procurement system since 2019. The Procurement Division of PT XYZ Life Insurance in implementing the e-procurement system will try to be evaluated using the VAL IT 2.0 method. The implementation of VAL IT is one of the frameworks that can be used to conduct an information technology governance management audit or IT Governance. The VAL IT 2.0 Framework analysis used in this study's conclusion to determine the state of the e-procurement system's implementation as part of operational technology management at the company PT XYZ Life Insurance yielded results showing that the highest average GAP Maturity Level is found in the Portfolio Management domain analysis at 1.11, which is different from the level or value 5 of the expected maturity level. PT XYZ Life Insurance must identify all potential e-procurement programs that could be part of the company's IT investment portfolio and prioritize e-procurement programs based on their alignment with strategic objectives, potential value, and risk considerations.