ITIL : 9 The ITIL version 2 Business Perspective 10 and Application….

ITILITIL : 9 The ITIL version 2 Business Perspective 10 and Application….


Communicating the IT portfolio 7.

Developing and evolving IT portfolio governance and organization 8.

Assessing IT portfolio management process execution IT portfolio management There is no single best way to implement IT portfolio approach and therefore variety of approaches can applied.

Obviously the methods are not set in stone and will need altering depending upon the individual circumstances of different organizations.

3 IT portfolio management vs.

balanced scorecard The biggest advantage of IT portfolio management is the agility of the investment adjustments.

While balanced scorecards also emphasize the use of vision and strategy in any investment decision, oversight and control of operation budgets is not the goal.

IT portfolio management allows organizations to adjust the investments based upon the feedback mechanism built into the IT portfolio management.

History The first mention of the portfolio concept as related to IT was from Richard Nolan in 1973: “investments in developing computer applications can be thought of as a portfolio of computer applications.” [4] Further mention is found in Gibson and Nolan’s Managing the Four Stages of EDP Growth in 1973.[5] Gibson and Nolan proposed that IT advances in observable stages driven by four “growth processes” of which the Applications Portfolio was key.

Their concepts were operationalized at Nolan, Norton & Co.

with measures of application coverage of business functions, applications functional and technical qualities, applications age and spending.

McFarlan [6] proposed a different portfolio management approach to IT assets and investments.

Further contributions have been made by Weill and Broadbent,[7] Aitken,[8] Kaplan,[2] and Benson, Bugnitz, and Walton.[9] The ITIL version 2 Business Perspective[10] and Application Management[11] volumes and the ITIL v3 Service Strategy volume also cover it in depth.

Various vendors have offerings explicitly branded as “IT Portfolio Management” solutions.

ISACA’s Val IT framework is perhaps the first attempt at standardization of IT portfolio management principles.

In peer-reviewed research, Christopher Verhoef has found that IT portfolios statistically behave more akin to biological populations than financial portfolios.[12] Verhoef was general chair of the first convening of the new IEEE conference, “IEEE Equity,” March 2007, which focuses on “quantitative methods for measuring, predicting, and understanding the relationship between IT and value.”[13] McFarlan’s IT portfolio matrix High ^ |—————————————————————| |strategic Impact of IS/IT applications on future industry competitiveness | | | |Central Planning |Critical to achieving |future business strategy.

(Developer) | Turnaround |May be critical to |achieving future |business success | | | | (Entrepreneur) | | | | | | |—————————————————————| |Leading Edge/Free Market |—————————————————————| |Critical to existing business |operations | | (Controller) | | |Valuable but not critical | | | (Caretaker) |to success IT portfolio management |Monopoly |Factory High Value to the business of existing applications.

| Scarce Resource | Support | | 4 |_______________________________|_______________________________| |<---------------------------------------------------------------Low Freeware and Open Source Tools MappIT [14] is a free tool used to map and analyze IT Portfolio assets (systems, business processes, infrastructure, people, skills, roles, organization, spending...) and their lifecycle.

It was launched in its first version in February 2012.

Relationship to other IT disciplines IT portfolio management is an enabling technique for the objectives of IT Governance.

It is related to both IT Service Management and Enterprise Architecture, and might even be seen as a bridge between the two.

ITIL v3 calls for Service Portfolio Management which appears to be functionally equivalent.

Difference between projects, programs and portfolios A project is managed with a clear end date in mind, and according to a set scope and budget.

It has a single easily definable tangible output.


a list of deliverables, a new system or an improved process.

A program is a collection of two or more projects sharing a common goal.Program managers control dependencies and allocate resources across projects.

A portfolio is a group of related initiatives, projects and/or programs that attain wide reaching benefits and impact.

References [1] Jeffery, M., & Leliveld, I.


Best Practices in IT Portfolio Management.

MIT Sloan Management Review.

45 (3), 41.

http:/ / sloanreview.


edu/ the-magazine/ articles/ 2004/ spring/ 45309/ best-practices-in-it-portfolio-management [2] Kaplan, J.



Strategic IT portfolio support, which consume the bulk of IT spending.

The challenge for including application maintenance and suppofolio management : governing enterprise transformation.

United States, Pittiglio Rabin Todd & McGrath Inc.

[3] Maizlish, B.

& Handler, R.


IT Portfolio Management Step-by-Step: Unlocking the Business Value of Technology.

New Jersey: John Wiley & Sons Inc.

[4] Nolan, Richard (1973).

“Plight of the EDP Manager.” Harvard Business Review, May–June 1973.

[5] Managing the Four Stages of EDP Growth Publication date: Jan 01, 1974.


#: 74104-PDF-ENG [6] McFarlan, F.



“Portfolio approach to information systems.” Harvard Business Review (September–October 1981): 142-150 [7] Weill, P.

and Broadbent, M.


Leveraging the New Infrastructure: How Market Leaders Capitalize on Information Technology.

Cambridge, Massachusetts, Harvard Business School Press.

[8] Aitken, I.


Value-driven IT management.


Remenyi, Computer Weekly Professional Series.

Oxford, Butterworth Heinemann.

[9] Benson, R.

J., T.


Bugnitz, et al.


From business strategy to IT action : right decisions for a better bottom line.

Hoboken, N.J., Wiley [10] Office of Government Commerce (2004).

Business Perspective: The IS View on Delivering Services to the Business.

OGC, ITIL© Managing IT Services (IT Infrastructure Library).

London, The Stationery Office.

[11] Office of Government Commerce (2002).

Application management.

OGC, ITIL© Managing IT Services (IT Infrastructure Library).

London, The Stationery Office.

[12] Verhoef, Christopher, “Quantitative IT portfolio management,” Science of Computer Programming, Volume 45, Issue 1, pages 1–96 (October 2002).

[13] http:/ / www.



nl/ equity2007/ index.

php?id=1 [14] http:/ / frankitecture.


com/ IT portfolio management 5 Further reading • Sanwal, Anand (2007).

Optimizing Corporate Portfolio Management: Aligning Investment Proposals with Organizational Strategy (


ISBN 978-0-470-12688-2.

Article Sources and Contributors 6 Article Sources and Contributors IT portfolio management  Source:  Contributors: 1400degrees, Abbshore, Akbradford, Arpabr, Athaenara, Barrylb, Cbcurran, Charles T.

Betz, Cireshoe, Corn Neck, DARTH SIDIOUS 2, DeadlyAssassin, Dnstrom, Dwbrockway, Edcolins, Forestsmith, Graeme Bartlett, Gurch, Haakon, Hervegirod, Hu12, Jainvinay04, Jkaplan143, Jmlk17, Jncraton, Jowanner, Jpbowen, Kukini, Kuru, LOL, Madhava 1947, Madman2001, Malcolma, Mdd, Mgillett, Mnbaqir, MrOllie, Nasnema, Nickmalik, Notinasnaid, Plrk, Pmollins, Poweroid, Randybindia, Ravikprasad, Reedy, Richard R White, Rlasky, Ronz, Salliesatt, Shajela, Sstaunb, Stevendoll, Tedder, Titusmars, TreasuryTag, Wikimsd, Yanksox, 78 anonymous edits

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