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Digital investment 101

Learn everything you need to know before starting the Information Management and Information Technology (IM/IT) capital funding process. 

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Start your digital project

There are 3 types of funding that ministries may use to fund the development of a digital product or service:

  • Operational funding. Government operational funding covers day-to-day expenses for regular business functions and service delivery
  • Capital funding. Government capital funding covers expenses related to the creation of an asset that provides future value to the B.C. government
  • Other sources of funding. Other sources of funding could include federal grants or other program specific funding

Digital projects are usually initiated with operational funding.

Many of the initial discovery activities must be completed before requesting capital investment. These include:

  • Definition of the business problem
  • User and market research
  • Feasibility studies
  • Proof-of-concept development
  • Business case development

This is because capital funds can only be used for expenses related to the creation of an asset that provides future value to the B.C. government. While early research, planning and discovery activities inform a project’s direction, they don’t directly contribute to the creation of the final asset.  

As costs related to discovery and project planning are usually paid by ministry operational funding, your Ministry Chief Financial Officer is the best source of guidance on funding options for this work.

Capital vs. operational costs 

This core policy document contains a helpful breakdown of capitalizable vs. operational costs.

For detailed information on capital and operational expenses, review chapters I, 5 and 12 of the Core Policies and Procedures Manual (CPPM).

Your ministry contact and ministry’s Chief Financial Officer can also provide guidance on capital expenses. 

Build and scale your digital product

Digital products and services become assets when they are launched and made available to users. Most of the costs to build or buy them must be funded with capital.  

Some project-related costs can’t be capitalized and ministries are responsible for these costs. For example, the salaries of government employees working on the development of a digital product or service can only be capitalized in very specific circumstances. 

Once discovery activities are complete, you can prepare a business case to request capital funding to move into the development stage of your project.

Run and sustain your digital product

Once a product is launched, ministries must set aside funds for maintenance, continuous improvement and amortization. Capital funding can also play a role in improvements to the product in the case of a major upgrade.   

When considering whether to approve a capital investment, the Deputy Ministers’ Committee on Digital and Data (DMCDD) looks closely at a ministry’s commitment to sustain an asset long-term. For example, they want to know if a ministry has dedicated human resources who are responsible to support and improve the product.

Ministries are responsible for the amortization of their assets. Amortization starts when the asset is ready for use or brought into use. Amortization is a way of spreading out the cost of a long-lasting asset over its “useful lifespan,” the time period that the asset is expected to be usable.

Categories of IM/IT capital funding  

Minor and major investments are the 2 categories of IM/IT capital funding.

Minor investments  

  • Require less than $50 million in total capital funding

Major investments  

  • Require $50 million or more in total capital funding
  • Intake process requires a Treasury Board submission

The DIO reviews all initial IM/IT capital funding requests.

The process described on this website is for ministry teams who want to submit an IM/IT minor capital funding request. If you want to submit a request for major funding, contact the DIO.

IM/IT investment objectives

The overall objective for IM/IT capital funding is to invest in projects that help make government services inclusive, reliable, easy to use and responsive to people’s expectations.  

The DMCDD is currently focusing its investments in 4 key categories:

Ministry priorities

Investing in products and services that help ministries transform their services and deliver on mandate commitments, service plans and legislated requirements.

Priority legacy systems

Replacing or upgrading critical legacy systems that are likely to impact service delivery.

Common components

Investing in products and services that reduce duplication, accelerate technology delivery and promote a consistent experience for people in British Columbia.

Connected services

Delivering accessible, connected services that solve whole problems for people in British Columbia, including those that span multiple ministries.

Capital funding roles and responsibilities

Familiarize yourself with the roles and responsibilities for minor capital funding. These are described in the IM/IT Capital Investment Management Framework (PDF, 646KB) and Assurance Guidance for the Responsible Executive Director on IM/IT Investments (PDF, 171KB).

Deputy Ministers’ Committee on Digital and Data (DMCDD) 

DMCDD sets the strategy for digital service delivery, technology and data across government. On behalf of Treasury Board, DMCDD evaluates funding requests and approves digital project funding within the minor IM/IT capital envelope.

Government Chief Information Officer (GCIO) 

The GCIO is responsible for providing strategic direction and advice on information management and technology for the Province, and sets priorities for IT investment. GCIO also serves as secretariat for the DMCDD.  

Digital Investment Office (DIO) 

The DIO is responsible for the government IM/IT capital envelope and assesses other major digital funding requests from across government. We carry out governance and assurance tasks on behalf of the Deputy Ministers’ Committee, ensuring projects achieve their outcomes and benefits.

Deputy Ministers (DMs) 

DMs oversee information and IT management in their ministries. They set strategic direction for IT that aligns with government priorities and develop ministry-specific policies and standards.   

Your DM is responsible for prioritizing projects for minor capital funding and supporting your project team in developing the funding request. DMs are responsible for delivering the project if approved, although this responsibility is usually delegated to your MCIO.  

Sponsoring Assistant Deputy Minister (ADM)

The sponsoring ADM oversees the program area requesting capital funding. They make sure appropriate resources are available to deliver, sustain and improve the digital asset over its lifespan and mitigate business risk during the project. The sponsoring ADM also presents funding requests over $1.5 million to the DMCDD, if applicable.

Responsible Executive Director (RED)

The RED is an executive director from the program area requesting capital funding. The RED is the owner of the project and is responsible for delivering the project within budget, realizing the project benefits and reporting on the outcomes achieved. The RED takes responsibility for the asset once the project is complete and must ensure there is sufficient operational funding to sustain and continuously improve the asset.

REDs also approve the project’s business case and Key Performance Indicators.

Project team 

The team responsible for delivering the project on behalf of the RED. The project team, with support from their ministry, articulates the business problem and user needs and defines outcomes that inform the funding request. 

Ministry Chief Information Officer (MCIO) 

Your MCIO oversees the big picture of your ministry’s IT structure, including the architecture of capital IT projects. They ensure that your project deliverables are aligned with good digital practices and are technically sound. They also prioritize the IM/IT projects in your ministry on behalf of the Deputy Minister and must approve your funding request before you submit it to the DIO. Finally, your MCIO is also responsible for managing your ministry’s capital allocation.  

We strongly recommend that you keep your MCIO informed on the progress of your funding request and of your project, if it is approved.

Ministry Chief Financial Officer (Ministry CFO) 

Your ministry CFO signs off on behalf of your ministry to fund support, maintenance and continuous improvement of your project. You need to let your ministry CFO know about any financial impacts that may arise from your funding request. Your CFO can also help you determine which project costs are capital versus operating.

Ministry primary contact 

The individual identified by your MCIO to work with the DIO on their behalf. Your ministry contact is the DIO’s point of contact for your ministry’s overall capital allocation and will help you navigate the funding process. Some ministries ask their ministry contact to submit all business cases within the ministry. 

DIO portfolio contacts 

The individual at the DIO who is the primary point of contact for a specific ministry. To contact the DIO, ministry contacts and project teams should contact their DIO portfolio contact.  

Standard conditions for all recommended projects

All projects considered for IM/IT capital funding must meet compliance, reporting and documentation conditions.  

Compliance 

All projects must comply and align with:  

Reporting 

If your project receives funding approval, there are reporting requirements that must be met. Reporting helps keep the DIO and the DMCDD updated on your progress throughout the lifetime of your project.  

Documentation 

Capital-funded projects must maintain all the appropriate documentation. For example: 

  • Project charter 
  • Project plan or roadmap
  • Privacy Impact Assessment (PIA) 
  • Security Threat and Risk Assessment (STRA) 

Connect with your ministry contact to ensure you have all the necessary documentation. 

Evaluation criteria

The DMCDD contains criteria to guide the evaluation of all IM/IT capital funding requests. These reflect the DMCDD’s responsibility to: 

  • Maximize the value government derives from its IM/IT investments  
  • Ensure that IM/IT projects adhere to accepted best practices for government digital projects  

The evaluation criteria are regularly updated by the DMCDD to reflect government priorities. To support our Digital Plan, the current evaluation criteria were updated and approved by the DMCDD in March 2023. These criteria apply to all funding thresholds.  

Your business case must clearly indicate how your project addresses each of the evaluation criteria. If you have any questions about the evaluation criteria, connect with your DIO portfolio contact.

Evaluation criteria for 2024/2025 

Strategic alignment

  • Alignment with government priorities and ministry mandate  
  • Alignment with ministry strategies and/or legislated imperatives  
  • Relative ministry prioritization  

Value proposition

  • Clear articulation of what government is buying and building  
  • Clear articulation of business and user needs the investment will address  
  • Inclusion of risks and mitigation measures  
  • Clear success metrics  
  • Reasonable cost estimates  

Delivery approach

Suitability of:

  • Proposed delivery approach for the problem at hand  
  • Proposed team and resourcing approach for the project  
  • Project governance structure
  • Plans to design, build and test with users  

Architecture

  • Alignment with current digital practices  
  • Re-use of technology (for example, common components)  
  • Defaulting towards open standards to prevent vendor lock-in  
  • Promotion of equity, accessibility and inclusion  

Sustainability

  • Resourcing plan allows for building internal capacity and prevention of vendor lock-in   
  • Ministry capacity to cover operating costs, such as a team to deliver and continuously improve the product 

Learn about addressing evaluation criteria in the business case.

Funding approval thresholds

The DMCDD is responsible for deciding whether to provide capital funding for your project. The amount of funding you ask for determines whether the DMCDD evaluates your funding request, or delegates that authority to one of their representatives.  

The following thresholds apply to initial project funding requests and change requests for in-progress projects. Occasionally, the DIO may escalate a project to a higher approval level if it’s very complex or if the DIO believes the cost may increase.

Funding amount threshold   
Approver 
Funding request submission 

Up to $500,000

Executive Director, DIO   

Business case and financial workbook 

$500,001 to $1,000,000

Chief Digital Officer, OCIO  

Business case and financial workbook 

$1,000,001 to $1,500,000 

Government Chief Information Officer (GCIO) 

Business case and financial workbook 

Over $1,500,000 

Deputy Ministers’ Committee on Digital and Data (DMCDD) 

Business case, financial workbook and presentation to DMCDD 

Funding timelines

DMCDD requests 

If your funding request is going to the DMCDD for evaluation, you need to follow a timeline that aligns with the date of your DMCDD meeting date. The DMCDD does not meet in January or August.

Review the DMCDD timelines (PDF, 84KB) for specific meeting dates in 2024.

Action item 
Timeline 

Schedule DMCDD meeting

10 to 12 weeks before your DMCDD meeting date   

Submit completed business case (or change request)

9 weeks before your DMCDD meeting date

Feedback and guidance from DIO

5 to 8 weeks before your DMCDD meeting date   

Submit final business case (or change request) with approvals

5 weeks before your DMCDD meeting date

Submit completed DMCDD presentation 

5 weeks before your DMCDD meeting date

Submit final DMCDD presentation with approvals

3 weeks before your DMCDD meeting date 

Receive DMCDD meeting invitation

2 weeks before your DMCDD meeting date

Attend DMCDD meeting 

DMCDD meeting date 

Receive funding outcome letter 

2 weeks after your DMCDD meeting date

Choose a realistic DMCDD meeting date that gives you enough time to prepare all the necessary deliverables, but don’t wait too long to reserve your spot. Meeting dates fill up fast and delays in scheduling your meeting will delay the evaluation of your funding request.  

Schedule your DMCDD meeting date when you start to prepare your business case.

Non-DMCDD requests 

If your funding request is below the DMCDD funding approval threshold, your funding request is evaluated when you submit your final business case to the DIO.  

The time it takes for the approver to review and decide on your funding request is only an estimate. If your business case is incomplete or if you need to make revisions after submission, it will take longer to evaluate your request. 

Approver
Estimated time for decision

Executive Director, DIO

8 business days

Chief Digital Officer, OCIO, or ADM

10 business days

Government Chief Information Officer

15 business days