CAICOMPUTER AID, INC.IT Best PracticesBest Practices in IT Portfolio ManagementDavid Gritz
Best Practices in IT Portfolio ManagementLeading QuestionsHow can your organization maximize its IT investment with a fram...
Best Practices in IT Portfolio ManagementAbout the AuthorDavid Gritz is a research specialist in the Allentown, PA office ...
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IT Best Practices

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IT Best Practices

  1. 1. CAICOMPUTER AID, INC.IT Best PracticesBest Practices in IT Portfolio ManagementDavid Gritz
  2. 2. Best Practices in IT Portfolio ManagementLeading QuestionsHow can your organization maximize its IT investment with a framework?How does your organization rank in its IT portfolio management maturity?Key ConceptsMost organizations struggle to show business gains from investments in information technology. The ITportfolio management (ITPM) maturity model seeks to address the challenges of delivering tangible benefitsfrom IT projects. This model has four stages: Ad hoc, defined, managed, and synchronized. Ad hoccompanies make investments that are uncoordinated, chaotic, and misaligned. Defined companies havedefined 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 tobusiness strategy. Financial metrics are established and calculated for major projects. Synchronizedcompanies match their IT investment with strategy. They are able to assess risk and reward, balanceportfolios, 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 ITPMVisual Concepts Maturity Stage Factor Defined Managed SynchronizedAdvanced valuation x x xFeedback mechanism x x xBenefits measurement x x xActive portfolio management x xStrategic alignment xFinancial metrics x xDemand management x xCentralization xStandardization x x
  3. 3. Best Practices in IT Portfolio ManagementAbout the AuthorDavid Gritz is a research specialist in the Allentown, PA office of Computer Aid. You may contact him atdavid_gritz@compaid.Resource AuthorsMark Jeffery is assistant professor of technology at the Kellogg School of Management’s Center forResearch in Technology and Innovation at Northwestern UniversityMarcus Schaper is a principal with DiamondCluster International Inc. in Chicago.Full ArticlePublished 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.

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