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

2.1. INTRODUCTION

Unfortunately, it is all too common for organizations to latch on to a technology or technique, assuming it is the ever-elusive silver bullet, and dive into execution without being grounded in reality. The technique of IT portfolio management is no exception. Many IT portfolio management efforts have failed or been derailed because of improper planning prior to embarking on the journey. Recently, the focus of IT portfolio management has been on eliminating and consolidating IT assets (e.g., servers, applications). Given the volatility in the marketplace, this is a logical use of IT portfolio management. However, it is not leading practice—it is common practice. Best practice companies look at the big picture within the context of their objectives, risk tolerance, and the interrelationships between IT investments.

This chapter explains the importance of planning for IT portfolio management. Of key importance is aligning the IT portfolio management efforts with business objectives, the capabilities of the team responsible for the effort, the degree of engagement of key stakeholders, and the culture of the organization. Just as a pilot creates a flight plan before getting into the cockpit, the IT portfolio management effort must create an achievable game plan prior to execution.

This chapter also describes the steps needed to generate a plan for establishing and maintaining the IT portfolio. Careful attention is placed on establishing the value proposition and identifying ...