What is IT portfolio management? What are the benefits and trends to an
organization? How is it being applied and what does an organization need to implement a portfolio
IT portfolio management is grounded in financial portfolio management, where dollars are
appropriately distributed between risky and stable investments according to a person's profile and
goals. Translated to IT, this means that technology
executives have a holistic view
of all IT projects and resources across the enterprise, and
take new investment analysis from a business-need perspective first.
Companies that adopt portfolio management have strong IT governance in place, fostered by CIOs
who have a solid grasp of business issues and communicate IT value across the executive team.
The top-level merits of IT portfolio management are:
- Helps IT directors establish project accountability
- Ensures open communication on funding approval and denials for new projects
- Balances investment risk and reward
- Helps IT and business leaders collaborate, and ensures IT addresses business priorities
- Eliminates overlapping and redundant projects
To successfully implement this approach, companies need a foundation of credible third-party ROI
analysis on current and proposed projects, and an industry analysis to understand how new
initiatives will achieve competitive gain.
Alinean's ValueIT™ software (http://www.alinean.com/ValueIT.asp) is the first
comprehensive portfolio management toolkit specifically focused on competitive benchmarking and
project analysis and improvement of ROI and Value of IT.
This was first published in April 2005