Best Practices of IT Portfolio Management
•
2 likes•1,632 views
David Gritz answers: How can your organization maximize its IT investment with a framework? How does your organization rank in its IT portfolio management maturity?
Recommended
More Related Content
More from Computer Aid, Inc
More from Computer Aid, Inc (20)
Recently uploaded
Recently uploaded (20)
Best Practices of IT Portfolio Management
- 1. CAI COMPUTER AID, INC. IT Best Practices Best Practices in IT Portfolio Management David Gritz
- 2. Best Practices in IT Portfolio Management Leading Questions How can your organization maximize its IT investment with a framework? How does your organization rank in its IT portfolio management maturity? Key Concepts Most organizations struggle to show business gains from investments in information technology. The IT portfolio management (ITPM) maturity model seeks to address the challenges of delivering tangible benefits from IT projects. This model has four stages: Ad hoc, defined, managed, and synchronized. Ad hoc companies make investments that are uncoordinated, chaotic, and misaligned. Defined companies have defined key components of their portfolios and coarsely estimated the cost and benefits of each element. Managed companies have standardized process that enables objective project selection with a link to business strategy. Financial metrics are established and calculated for major projects. Synchronized companies match their IT investment with strategy. They are able to assess risk and reward, balance portfolios, and eliminated underperforming projects. Facts and Figures - $780 billion was spent on IT in the US in 2002 - 68% of IT projects were not on-time or on-budget - There is a statistical link between synchronized ITPM and return-on-asset performance - $150 billion of IT projects failed between 2002 and 2004 - 17% of companies run in the most mature stage of ITPM Visual Concepts Maturity Stage Factor Defined Managed Synchronized Advanced valuation x x x Feedback mechanism x x x Benefits measurement x x x Active portfolio management x x Strategic alignment x Financial metrics x x Demand management x x Centralization x Standardization x x
- 3. Best Practices in IT Portfolio Management About the Author David Gritz is a research specialist in the Allentown, PA office of Computer Aid. You may contact him at david_gritz@compaid. Resource Authors Mark Jeffery is assistant professor of technology at the Kellogg School of Management’s Center for Research in Technology and Innovation at Northwestern University Marcus Schaper is a principal with DiamondCluster International Inc. in Chicago. Full Article Published by MIT Sloan Management Review (Apr 2004) Download at http://tinyurl.com/3eg3acl Join the conversation www.caibuzz.com Receive more summaries tinyurl.com/JoinCAI Contact us at itbuzz@compaid.com Copyright ©2011 Computer Aid, Inc. All rights reserved.