MIT 704
IT Project Management & Governance
ISUFST School of Graduate Studies · Master in Information Technology
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Lecture 1 · Enterprise IT Governance & COBIT 2019

IT Governance, COBIT 2019 & 5-Year TCO

BantayBaybay Puerto Alon Case Study

Core Executive Insight

🏛️ Decision Studio · 5-Year Total Cost of Ownership (TCO) & BCR Workbench

Day 4 Unmasking the Public IT OpEx Iceberg, Benefit-Cost Ratio & COBIT CMMI Maturity Scoring

5-Year Lifecycle Model
5-Year Cumulative OpEx ₱1,310,000 54.4% of Total 5-Yr Commitment
5-Year Total Cost of Ownership ₱2,410,000 CapEx + 5-Year OpEx
Benefit-Cost Ratio (BCR) 1.57x Total 5-Yr Benefits: ₱3,780,000
Municipal Fiscal Sustainability Verdict
SUSTAINABLE MUNICIPAL ASSET (Annual OpEx Ordinance Required: ₱238,000/yr)
STEP-BY-STEP MATHEMATICAL CALCULATION BREAKDOWN Lifecycle TCO Equations
5-Yr OpEx = 5 × (Cloud + Maint) + Battery Refresh  |  5-Yr TCO = CapEx + 5-Yr OpEx  |  BCR = PV(Benefits) / PV(Costs)
1. Authoritative Lecture Benchmark
Initial CapEx:₱1,100,000 (45.6% of commitment)
Annual OpEx:₱108k cloud/SIM + ₱130k maintenance = ₱238k/yr
Mid-Cycle Refresh:₱120k for Year 3 AGM battery bank
5-Year Cumulative OpEx:5(₱238k) + ₱120k = ₱1,310,000 (54.4%)
Total 5-Yr TCO:₱1.1M + ₱1.31M = ₱2,410,000
2. Live Dynamic Equation
5-Yr OpEx Sum:5 × (₱108k + ₱130k) + ₱120k = ₱1,310,000
CapEx Share:₱1,100,000 / ₱2,410,000 = 45.6%
OpEx Share:₱1,310,000 / ₱2,410,000 = 54.4%
Total 5-Year TCO:₱1,100,000 + ₱1,310,000 = ₱2,410,000
Live BCR Ratio:₱3,780,000 / ₱2,410,000 = 1.57x
Hackathon Continuation Project Phase 4 · Enterprise IT Governance & 5-Yr TCO

Day 4 Executive Project Blueprint & Submission Guide

Direct Step-by-Step Continuation of Your Agri-Fisheries IT Hackathon Project

🌱 Connecting Your Hackathon Project to Day 4

CRITICAL INSTRUCTION: Do not invent a new, disconnected project topic. During the Agri-Fisheries IT Hackathon Workshop, your student team selected a real-world coastal or agricultural hazard and produced an initial Hackathon Project Charter (e.g., LandingWatch, BantayBaybay, PalayTrust, AgriTrack).

In Day 4: IT Governance, COBIT 2019 & 5-Year TCO, your team takes that exact same project charter and advances it through today's graduate-level governance stage. Every day in this 5-day curriculum builds one unified, audit-ready master project dossier!

📋 Step-by-Step Instructions: What To Do Today
1
Retrieve Your Hackathon Project Charter

Open your team's Hackathon Charter from the Hackathon Panel above. Identify your selected Problem Statement, Target Beneficiary Group, and Core Technical Innovation.

2
Review the Required Day 4 Deliverables in Tab 2

Check the checklist in Tab 2 (Deliverables Checklist & Rubric). It provides clear instructions, formulas, and quality criteria for each section you must produce.

3
Examine the Worked Reference Exemplar in Tab 3

Review Tab 3 (Puerto Alon Exemplar). It demonstrates how a graduate team took the BantayBaybay Hackathon concept and produced full mathematical appraisals, matrices, and audit sign-offs.

4
Complete & Export the Submission Form in Tab 4

Switch to Tab 4 (Blank Submission Form). Fill in your team's project details using the turnkey Markdown template. Use the 1-Click Copy Markdown or Download .md File buttons to save your work.

🎯 Graduate Grading Rubric & Success Anchors
1. Strategic Traceability (25%)

Explicit benefit chain connecting technical outputs to measurable public/citizen outcomes without vague generalities.

2. Quantitative Rigor (25%)

Defensible calculations (PERT durations, Payback, NPV, EVM, EMV, or TCO) with honest operational buffers.

3. Regulatory Compliance (25%)

Strict adherence to Philippine RA 9184 public procurement rules and COA asset capitalization guidelines.

4. Human-Centered Design (25%)

Clear consideration of grassroots realities: device constraints (2G phones), local dialects, and operational stress.

📝 Day 4 Required Project Submissions

Complete each deliverable for your team's Hackathon initiative. Check each item off as you complete your dossier.

Deliverable 4.1 · ISO/IEC 38500 Governance vs Management Separation Required

Differentiate the Municipal Steering Committee's Governance role (Evaluate, Direct, Monitor) from the Technical Management role (Plan, Build, Run, Monitor).

Deliverable 4.2 · COBIT 2019 Goals Cascade Traceability Required

Map Stakeholder Drivers → Enterprise Goals (EG01 Public Safety) → Alignment Goals (AG04 Real-time Telemetry) → Governance Objectives (EDM02, APO12, BAI03, MEA01).

Deliverable 4.3 · 5-Year Total Cost of Ownership (TCO) Modeler Required

Model full lifecycle expenditure across 5 years, proving that upfront CapEx is only ~45% of total cost and establishing recurring municipal OpEx appropriations.

Deliverable 4.4 · Municipal Steering Committee Charter Required

Draft formal committee composition, voting quorum, decision rights, and bi-weekly milestone review protocols.

🏆 Gold-Standard Worked Reference Exemplar: BantayBaybay Puerto Alon

This is an authentic, graduate-level reference dossier illustrating how the BantayBaybay team executed Day 4. Use this as your benchmark for rigor, formatting, and depth.

1. COBIT 2019 Alignment & 5-Year Ownership Reality

The 5-year analysis revealed that upfront procurement (₱1.1M) was only 45.6% of the commitment. The municipal council was mandated to budget recurring annual appropriations: SIM cellular data (₱48k/yr) + Cloud database hosting (₱60k/yr) + Year 3 battery refresh (₱120k) + Maintenance retainers (₱130k/yr) = ₱2.41M Total 5-Year Ownership Cost.

📄 Turnkey Project Submission Template

Copy or download this pre-formatted Markdown template, fill in your team's Hackathon data, and submit for evaluation.

# [PROJECT NAME] — IT Governance, COBIT 2019 & 5-Year TCO Strategy
*(Continuation of Hackathon Project Charter · Round 1–4)*
**Team Name:** [Enter Hackathon Team Name]
**Academic Program:** MIT 704 · IT Project Management & Governance
**Sponsoring Entity:** [e.g., Municipal Agriculture Office / MDRRMO / Coastal Fisherfolk Federation]
**Primary Authors:** [Student Team Members & Designated Roles]

---

## 🧭 HACKATHON CONTINUITY BRIEF
*In Day 4, your team elevates your Hackathon project from a one-off technical build into a sustained institutional asset by establishing formal ISO/IEC 38500 governance, aligning with COBIT 2019 objectives, and modeling full 5-year operational lifecycle costs.*

---

## 1. Governance vs. Management Separation (ISO/IEC 38500)
* **Governance Body (Municipal IT Steering Committee):**
  * **Evaluate:** Evaluates societal disaster risks, fisherfolk needs, and municipal budget constraints.
  * **Direct:** Directs technical strategy via municipal executive orders, data privacy mandates, and funding appropriations.
  * **Monitor:** Monitors benefits realization, COA statutory compliance, and casualty reduction metrics.
* **Management Body (Project Manager & ICT Office):**
  * **Plan, Build, Run, Monitor (PBR):** Executes daily sprint delivery, oversees telemetry tower maintenance, monitors telco gateway health, and prepares operational status reports.

---

## 2. COBIT 2019 Goals Cascade Traceability Matrix
1. **Stakeholder Driver:** High mortality rate and boat capsizes among municipal fisherfolk during sudden sea squalls.
2. **Enterprise Goal (EG01):** Public safety and disaster resilience for coastal citizens (Aligned with Local Government Code Mandate).
3. **IT Alignment Goal (AG04):** Agile and resilient IT-enabled services delivering life-critical telemetry in real time.
4. **Selected Governance & Management Objectives:**
   * **EDM02 (Ensured Benefits Realization):** Continuous tracking of emergency alert speed and casualty reduction.
   * **APO12 (Managed Risk):** Redundant power, cellular tower failover, and battery theft countermeasures.
   * **BAI03 (Solutions Identification & Build):** Modular sensor hardware and scalable cloud SMS architecture.
   * **MEA01 (Managed Performance & Conformance):** Strict adherence to COA asset guidelines and RA 9184 procurement rules.

---

## 3. Five-Year Total Cost of Ownership (TCO) Modeler
*Upfront capital procurement represents less than half of an enterprise system's true financial commitment.*

| Cost Category | Year 1 (CapEx + OpEx) | Year 2 (OpEx) | Year 3 (OpEx + Refresh) | Year 4 (OpEx) | Year 5 (OpEx) | 5-Year Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| **Initial Hardware Procurement & Civil Works** | ₱940,000 | ₱0 | ₱0 | ₱0 | ₱0 | ₱940,000 |
| **Implementation Contingency Reserves** | ₱90,000 | ₱0 | ₱0 | ₱0 | ₱0 | ₱90,000 |
| **Management Reserve Envelope** | ₱70,000 | ₱0 | ₱0 | ₱0 | ₱0 | ₱70,000 |
| **Cellular SIM Cards & M2M Telemetry Data** | ₱48,000 | ₱48,000 | ₱48,000 | ₱48,000 | ₱48,000 | ₱240,000 |
| **Cloud Hosting & SMS Gateway Subscription** | ₱60,000 | ₱60,000 | ₱60,000 | ₱60,000 | ₱60,000 | ₱300,000 |
| **Quarterly Sensor Calibration & Tower Retainer** | ₱130,000 | ₱130,000 | ₱130,000 | ₱130,000 | ₱130,000 | ₱650,000 |
| **Mid-Life Battery & Solar Charge Controller Refresh**| ₱0 | ₱0 | ₱120,000 | ₱0 | ₱0 | ₱120,000 |
| **ANNUAL EXPENDITURE TOTALS** | **₱1,338,000** | **₱238,000** | **₱358,000** | **₱238,000** | **₱238,000** | **₱2,410,000** |

* **Key Governance Takeaway:** CapEx (₱1.1M) is only **45.6%** of 5-year TCO. Municipal appropriations must legally budget ₱238k–₱358k annually for operational sustainability.

🗺️ The Continuous 5-Day Project Lifecycle

See how your Hackathon concept advances across all 5 days of the ISUFST MIT 704 curriculum.

Day 1 Initiation
Projects, Business Case & WBS

Establish statutory justification, 3-way options appraisal, 5-year NPV (+₱207k), and 26-week CPM baseline.

Day 2 Agile
Scrum, Backlog & Sprints

Form Scrum team, craft BDD acceptance criteria, define DoD quality contract, and size Sprint 1 (78 task hrs).

Day 3 Governance
Risk, RACI & Procurement

Price risk exposure with EMV, prioritize via RRL (>1.0), assign single-A RACI accountability, and enforce RA 9184 SLAs.

Day 4 Enterprise
COBIT 2019 & 5-Year TCO

Separate governance (EDM) from management (PBR), trace COBIT Goals Cascade, and budget full ₱2.41M 5-year TCO.

Day 5 Closure
EVM Control, Stress-Test & COA

Diagnose midterm EVM variance (CPI 0.92, SPI 0.80), execute live monsoon storm test, and capitalize fixed assets under COA rules.

Day 1 Activity · 5-Day Capstone
Agri-Fisheries & Blue Economy IT Hackathon
Hackathon Slide Preview
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Slide 1 of 36 Agri-Fisheries & Blue Economy IT Hackathon

⚡ Workshop Structure: 2-Hour Action Sprint

Teams of 3 to 5 graduate students working simultaneously across 3 workstreams. Every team develops and pitches one fundable, field-tested IT solution for Philippine artisanal agriculture or fisheries.

Round 1 Problem Storm (15m)

Open the class scoring spreadsheet and write five grassroots problems in your community. Every problem must be framed from the fisher's or farmer's point of view, backed with empirical field evidence (no jumping to solutions).

Round 2 Score & Select (15m)

Score each problem 1 to 5 on the 6 weighted criteria. Before locking in the #1 winner, the team's designated Devil's Advocate delivers the strongest objection, and the team must defend it in one sentence.

Round 3 Charter Sprint (35m)

Split into 3 workstreams to fill the 11-section Project Charter: SMART criteria, Level-2 WBS, System Context Diagram, Milestones, and a preliminary budget with a mandatory 10% contingency reserve.

Round 4 Panel Pitch (5m)

3-minute 1-slide pitch to municipal stakeholder roles (Mayor, MAO, BFAR, Fisherfolk Co-op, ICT/DPO) followed by a 2-minute defense defending operational and financial feasibility.

If your team needs empirical inspiration, draw from these real-world coastal and rural municipal challenges:

🐟 Municipal Fisheries

• FishR and BoatR municipal registries severely out of date.
• Zero recorded catch logs for municipal waters under 15km.
• Late gale warnings fail to reach fishers without smartphone 4G.
• Red tide shellfish harvesting bans arrive after market dispatch.

🌾 Agriculture & Smallholders

• Farmers missing from RSBSA registry, blocking DA fuel subsidies.
• PCIC crop insurance claim verification stuck on physical paper.
• Armyworm and blast pest outbreaks reported days too late.

🌊 Aquaculture & Seaweed

• Estuary water salinity and pH tested manually once a week.
• Ice-ice seaweed blight spreads without predictive environmental warning.

⚖️ Landing Sites & Cold Chain

• Severe price asymmetry: fishers sell at buyer price without market feeds.
• 30% post-harvest loss from inadequate ice logistics at municipal piers.

🌿 Mangroves & MPA Ecology

• Thousands of mangrove saplings planted with zero survival monitoring.
• Marine Protected Area (MPA) patrol logs kept on paper notebooks.

Criterion Weight Anchor: Score 1 (Weak) Anchor: Score 5 (Exemplary)
Livelihood Impact 25% Touches <20 households; minor economic inconvenience Directly protects hundreds of livelihoods, food security, or life safety
Feasibility 20% Requires unavailable satellite arrays or 4G LTE at sea Feasible in 12 months using 2G SMS, solar batteries, and local LGU staff
Urgency & Vulnerability 15% Can wait 3 years with negligible public impact Critical immediate hazard: loss of life, harvest failure, or stock collapse
Sustainability & Climate 15% Zero ecological or climate resilience benefit Directly reduces disaster risk, preserves fish stocks, or restores mangroves
Data Readiness 15% No registries exist; Data Privacy Act compliance impossible Empirical registries exist (FishR, RSBSA) and are legally accessible
Policy Alignment 10% Not mentioned in any municipal or national plans Explicitly prioritized in LGU AIP, Coastal Resource Plan, or BFAR mandate
LandingWatch Exemplar · 11-Section Turnkey Markdown Template
# PROJECT CHARTER: LandingWatch (BantayBaybay) ## Same-Day Fish Prices & Catch Records for Municipal Landing Sites ### 1. Project Identity - **Project Code:** MIT704-HACK-G01 - **Project Title:** LandingWatch Municipal Telemetry & SMS Dispatch - **Target Location:** Barangay Puerto Alon & Barangay San Pedro Landing Piers - **Sponsoring Agency:** Municipal Agriculture Office (MAO) & MFARMC ### 2. Problem Statement & Evidence - **Grassroots Problem:** Small-scale fishers sell their catch at whatever price the local middleman dictates because market prices are posted on paper 24 hours too late. - **Field Evidence:** 620 registered fishers; 0 digital catch logs; 18% estimated loss in gross fisher income due to pricing opacity; 84% of fishers own basic 2G feature phones. ### 3. SMART Success Criteria - **S1:** At least 70% of registered municipal fishers receive daily 5:00 AM SMS market prices by Month 4. - **S2:** At least 90% of boat catch landings logged digitally within 2 hours of arrival by Month 6. - **S3:** Average net income realized by participating fishers increases by 10% within 12 months. ### 4. Scope Envelope - **IN SCOPE:** • Dual-channel SMS gateway (2G basic phones + Android PWA for landing marshals) • Solar-powered digital scale integration at 2 pilot landing sites • Daily market price broadcast engine connecting to municipal agriculture board - **OUT OF SCOPE:** • Satellite broadband on bangkas at sea • Mobile e-wallet payment processing (deferred to Phase 2) • Cold storage refrigeration physical construction ### 5. System Context Boundary Diagram ```mermaid graph TD Fishers["Municipal Fishers (2G SMS)"] -- Catch Query & Daily Price --> Sys["LandingWatch System"] Marshals["Pier Landing Marshals"] -- Weight & Species Entry --> Sys MAO["Municipal Agriculture Officer"] -- Price Board Configuration --> Sys BFAR["BFAR Region VI"] <-- Aggregated Monthly Catch Telemetry -- Sys ``` ### 6. Work Breakdown Structure (Level 2) - **1.0 Project Management:** Charter, Stakeholder Alignment, RA 9184 SLA Procurement - **2.0 Hardware & Pier Setup:** Solar Digital Scales, Ruggedized Tablet Enclosures, Surge Protection - **3.0 Software & Telco Gateway:** SMS Broadcast Engine, Landing Marshal Web App, Offline Sync - **4.0 User Training & Rollout:** Marshal Field Drills, Fisher SMS Awareness Campaign, Go-Live - **5.0 Governance & Post-Handover:** COA Property Capitalization, Post-Implementation Review ### 7. Milestones & Schedule - **M1:** Charter Signed & Council Resolution: Month 1 - **M2:** Hardware Procured & Pier Scales Installed: Month 3 - **M3:** SMS Gateway Live Field Pilot: Month 4 - **M4:** 100% Landing Catch Data Recorded: Month 6 - **M5:** COA Property Transfer & Operations Handover: Month 7 ### 8. Preliminary Budget & Reserves - **Hardware & Scales:** ₱145,000 - **Software Development & SMS Bundles:** ₱120,000 - **Marshal Training & Field Drills:** ₱26,000 - **Subtotal (Base Cost):** ₱291,000 - **Contingency Reserve (10% Known Unknowns):** ₱29,100 - **TOTAL APPROVED BUDGET:** ₱320,100 - **Annual Recurring OpEx:** ₱72,000 / year (funded via LGU AIP) ### 9. Key Risks & Approvals - **Risk 1:** Cellular tower power loss during severe monsoon storms. (Mitigation: Offline store-and-forward SQLite database). - **Risk 2:** Fisher distrust of digital scales. (Mitigation: MFARMC joint calibration verification seal). - **Executive Sign-off:** Municipal Mayor, Municipal Agriculturist, MFARMC Chairman.

🔄 Slide 34 Rule: Course-Long Continuous Spine

The project chosen today does not end today. Here is exactly how your team will advance this exact project across Days 2 to 5:

Day 1: Project Alignment & WBS

Problem discovery, SMART success criteria, 1-box Context Boundary, 3-level WBS, Three-Point PERT, 26-week Critical Path & 10% Reserves.

Day 2: Agile Sprints & Backlog

Decompose the Charter into Scrum Epics, write BDD User Stories for Mang Ramon & Ate Liza, and calculate 78 focus hours for Sprint 1.

Day 3: Quantitative Risk & RACI

Score typhoon and political risks with EMV ($P imes I$), prove Risk Reduction Leverage (RRL > 1.0), and establish RA 9184 SLA penalty clauses.

Day 4: COBIT 2019 & 5-Year TCO

Align project with municipal objectives using COBIT Goals Cascade, calculate the 5-Year TCO Iceberg (CapEx vs OpEx), and score against portfolio competitors.

Day 5: EVM Analytics & Handover

Conduct Month 3 EVM audit ($PV, EV, AC, CPI, SPI, EAC$), execute crisis schedule crashing during typhoons, and execute COA asset capitalization handover.

Curriculum Slide Index
32 Slides · 44m 08s Total Runtime