Businesses today rely heavily on IT as their business grows. But delivering projects
and aligning it with the organization’s IT strategies and investment are the major
concerns of many companies. Different projects are being implemented at different
times and the goal of each one is to maximize investment, cost, efficiency and
productivity. This is why IT management portfolio is very important in every IT
Without IT portfolio management in your project, the organization will be wasting
valuable resources in terms of performance and cost. Maximizing the IT business
investment in order to deliver desired results is the main objective IT portfolio
management. Aligning and managing IT portfolios will definitely enhance the
organization’s effectiveness and the quality of IT services will be improved thereby
achieving complete IT governance and management.
IT portfolio management will develop the organization’s decision-making capabilities
in every project and will help define how resources are to be managed effectively. It
is an automated process that can identify who is accountable to what and improve the
management of every IT project. As the organization balances the investment and
risk, decision making processes and frameworks are easily determined and an
effective governance of resources are properly tracked.
An integrated IT portfolio management can assist your company in enhancing your
business performance, unleash the opportunities for development and generate new
value using strategic innovation. The IT portfolio management includes the
disciplines of Project Portfolio Management, Application Portfolio Management and
Portfolio and Investment Planning.IT Project Portfolio Management gives the
framework for measuring the status of key IT initiatives all throughout the project
Managing IT investments is not the job of the business department. It is also not the
job of the IT department. Managing IT investments, especially now that they have
become more complex and demanding, is a job for both the business and IT
departments. In order for the organization to succeed in a better return of investment
in their IT management process, it has to make a strategic move of managing IT as a
portfolio and treat its every decision much like it treats any other decision in sales,
marketing, purchasing and manufacturing.
A strategic method of governing IT investments by the organization in order for
maximize its benefits is the very basic definition of IT portfolio management. With
this simple definition come multiple challenges in terms of proper application. We
have to understand that when it comes to IT portfolio, there is always confusion on its
segmentation depending on what and how it will be grouped together. It basically
stemmed from the fact that many projects are of similar nature and grouping them into
a single segment can be difficult.
Many top executives, managers and even policy makers have no clear understanding
on how to sufficiently create a strategic IT management portfolio in order to
maximize their investment. It should be noted that when organizations invest heavily
on IT, they will also have to prepare for a big transformation in their overall business.
It is therefore very important that the right processes and systems are put into place by
the organizations in order for them to monitor and control the cost and risks involved.