Rather, the champion owns the process, can supply necessary information, and can facilitate effective decisionmaking. Unlocking the business value of technology, by bryan maizlish and robert handler. The project management institute pmi published the standard for portfolio management in 2006 which defines ppm as a collection of projects temporary endeavours undertaken to create a unique. The impact of project portfolio management on information technology projects. Active engagement of the executives who will be directly and visibly responsible for the composition of the portfolio 3. Project portfolio management in theory and practice. A framework for the strategic management of information. Strategic information technology and portfolio management. Portfolio decision analysis for infrastructure and innovation management pekka mild a doctoral dissertation completed for the degree of doctor of science technology to be defended, with the.
It portfolio management also allows executives to centralize project details and other pertinent information to improve their knowledge and understanding of current portfolio assets. The role of technology within asset management blackrock. Application inventory the evolution from silos of application portfolios that were managed by dozens of business units to an enterprise portfolio that can be managed centrally in light of the. Portfolio management helps an individual to decide where and how to invest his hard earned money for guaranteed returns in the future. Portfolio management refers to the art of managing various financial products and assets to help an individual earn maximum revenues with minimum risks involved in the long run. A framework making benefits realisation a concrete management objective, as opposed to relying on wishful thinking and. There is significant interest in managing it resources as a portfolio of assets. Portfolio decision analysis for infrastructure and. The impact of project portfolio management on information technology article pdf available in international journal of project management 237. During the past 20 years companies have greatly improved processes and systems for managing the operational aspects of projectportfolio management ppm budgeting, project management, resource planning, and phase gate processes. The middle layer is the connections between strategy and project. Paper presented at pmi global congress 2005emea, edinburgh, scotland.
In its most basic, portfolio strategic management helps achieve organizations success, which heavily depends on the projects implementation that, in turn, greatly relies on how well the projects were planned. The complexity and volume of information we use and need is increasing. Project and portfolio services office of information technology. Technology strategy and management control simulation, decision support, and control of manufacturing flows applications of principalagent theory it and productivity raquel flodstrom, master of science in engineering wrote framework for the strategic management of information technology, as her licentiate thesis. The answer may be it portfolio management itpm that is, managing it as a portfolio of assets similar to a financial portfolio and striving to improve the performance of the portfolio by balancing risk and return. The annual tag technology reports will examine an array of technology issues identified by members. Information technology portfolio management dod directive 8115. An analysis involving it managers in 349 brazilian companies r. Portfolio management methods have been developed for use in technology portfolio management, information technology portfolio management, project portfolio management, new product portfolio management and service portfolio management, all of which remain fundamentally similar cooper et al. Project portfolio management in theory and practice thirty case studies from around the world jamal moustafaev, mba, pmp click here to order project portfolio management in theory and practice. Strategytoproject strategic portfolio management in the.
Pdf strategic information technology and portfolio management. Wrexham county borough council information management strategy 2016 2019 5 version 2. Strategic portfolio management analyst jobs, employment. Information technology portfolio management itpm is a framework of principles, processes, and practices that enables the aoc to make wellinformed decisions to maximize the value of investments. The technology assessment, market analysis and generation planning program in 20 will focus on updating existing data and methodologies and well as aggressively exploring an array of new planning issues identified by members. Presenting information that is current with the standard for portfolio management, third edition 20. Application portfolio management office of administration. Strategic information technology and portfolio management bridges the knowledge between information technology planning, enterprise architecture, and it portfolio management taking into account their financial impact. A practical approach to project portfolio management, part. A design process to deliver the optimal project portfolio supporting company competitiveness, exploiting information. This book compiles research on strategic information technology and portfolio sisp management, covering the latest innovations and emerging concepts, capability development, enterprise architecture. It portfolio and business strategy it portfolio and business strategy 15.
Technology services, law enforcement agencies, department of fish and wildlife, and others. Weigh project proposals against strategic business drivers and consider the cost and resource constraints. Project portfolio management is seen as a holistic activity, dependent on the. The second policy, project portfolio management, creates the consolidated database of state of minnesota it projects, an essential element of effective portfolio management. How do portfolio, program, and project management relate. Portfolio management is the centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related. Monday, january 22, 2007 page 3 of 3 office of enterprise technology planning and portfolio management in projects with runaway costs, unclear scope and schedule overruns.
Drive portfolio optimization easily model different portfolio scenarios to determine the best strategic path. A bestpractice framework and set of guidelines enables your organization to more effectively create. Project and portfolio services office of information. The main responsibilities of portfolio managers for it projects. The capabilities of information technology it for increasing competitive advantage forced management to consider it in the strategic planning process and to consider it not as a mere tool of. Jistem journal of information systems and technology. When experian examined the various events being reported, 90 percent. The enterprise it portfolio governance and management model has been extremely successful and is strong and flexible enough to take the michigan department of information technology on to the next stages of driving delivery and policy on statewide priority issues such as ehealth, education, and economic development. New research reveals how to meet the challenges of it portfolio management to deliver tangible results. A practical approach to project portfolio management, part 1. The respon sible managers identify together with inhouse information technology which projects are necessary and how they can mutually complement each. Despite businesss more than 20 years of experience with information systems is, disasters in that area still occur with surprising regularity.
Nonbusiness, consumer bankruptcies again rose in 2010, by 9 percent from 2009 levels to more than 1. Goals of portfolio management portfolio management is an ongoing process and is carried out with a set of goals in mind to fulfill the objectives of the investor. Towards a theoretical foundation for project portfolio. The enterprise it portfolio governance and management model has been extremely successful and is strong and flexible enough to take the michigan department of information. Beginners guide to project portfolio managementcritical steps. Promoting best practices and standardized projectprogram management through shared tools and templates. Apply to portfolio analyst, analyst, management analyst and more. October 2012 information technology assessment page 3 of 94 1. Aligning information technology it investments with constantly shifting business goals and priorities continues to be a major challenge for it managers. Asset managers require systems to facilitate the maintenance of data and flow of information between multiple functions within the manager, as well as to other. Strategytoproject strategic portfolio management in.
One of the most common processes is the establishment of a pmo be it a project management office, program management office or portfolio management office. Information technology portfolio management itpm is a topic of intense interest in the strategic management of information technology it. In itpm, it synchronization with corporate business. An explicit line of sight between all the projects in the portfolio and the strategic intent of the hosting organization 2. Information technology portfolio management united states navy. Portfolio management implementation at the it department of a major mobile telecom operator. Trends in portfolio management assess all different lending instruments and closely monitor the events that trigger a credit advisory. Enterprise it portfolio governance and management model. The it portfolio management stepbystep methodology presented in detail in chapter 5 is a proven process for applying it portfolio management and has eight stages. Mark jeffery and ingmar leliveld mark jeffery is assistant professor of. Valuation of it investments using real options theory. Technology portfolio management planview customer success.
It portfolio management is the application of systematic management to the investments, projects and activities of enterprise information technology it. Management of it portfolio is the process of rationalizing and organizing it applications in your company to meet specific business needs. The technology assessment, market analysis and generation planning program in 20 will focus on updating existing data and methodologies and well as aggressively exploring an array of new planning. There is significant interest in managing it resources as a portfolio of. The doctrine of project portfolio management could be criticized for suffering from deficiencies in its theoretical base and it is for this reason that this paper explores the relevance of established theories, such as modern portfolio theory and systems theory, to project portfolio management. Trends in portfolio management consumer bankruptcy trends suggest the economy wont be helped by any downturn in such filings until at least 2012. Portfolio governance enterprise portfolio management. This directive establishes policy and assigns responsibilities for the management of dod information technology investments as portfolios that focus on improving dod capabilities and mission outcomes. Mark jeffery and ingmar leliveld mark jeffery is assistant professor of technology at the kellogg school of managements center for research in technology and innovation at northwestern university in evanston, illinois. Without a plan and a strategy, managing a project and achieving business goals may not be possible.
Portfolio management is the centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve strategic business objectives. This process can help smoother communication within the team and organization and help with daytoday functioning of the business processes. What does information technology portfolio management look like. To ensure that information technology it teams function optimally when implementing projects, organizations have been increasingly establishing it governance systems based on such industry standards as the it infrastructure libraryitil and the control objectives for information and related technology cobit. Nc states oit project and portfolio services are dedicated to. Speaking of process, managing a project portfolio requires a transparent, fluid. This paper presents a theoretical foundation for project portfolio management as a discipline. Comdocumentslocaleslapdf2accenturevaluedrivenbusinessprocessmanagement. The portfolio management model overview the model provides a cio with a structured dynamic view of an it organization, by linking together its resources, assets, and processes. The bottom layer is the various projects being undertaken. The aim of this book is to bridge the knowledge between information technology planning itp, enterprise architecture and it portfolio management taking into account the financial impact. The value of information technology portfolio management information technology portfolio management itpm is a framework of principles, processes, and practices that enables the aoc to make wellinformed decisions to maximize the value of. This instruction establishes department of the navy policies and procedures for the management of information technology and national security systems investments as portfolios across the don enterprise that focuses on improving don capabilities and mission outcomes. The cobit control objectives for information and related technology.
The concept of it portfolio management itpm is relatively new, compared to. Analogies that build on financial portfolio theory or on concepts about product and research and development pipeline portfolios which are more akin to it portfolio management than to financial portfolios are not new. The standard for portfolio management 2nd edition pmi, 2008. This paper will start presenting project portfolio management general knowledge. To ensure that information technology it teams function optimally when implementing projects, organizations have been increasingly establishing it. Portfolio governance flexible capabilities offer controls to manage all project and program investments. The aim of this study is to investigate the effectiveness of the project portfolio management in different business organizations.
Portfolio management implementation at the it department pmi. An ability to clearly communicate how the portfolio is. A strategic approach supplies indepth treatment of the five domains and identifies best practices to ensure the organization has a balanced portfolio management that is critical to success. In itpm, it synchronization with corporate business strategy is operationalized by the application of the principles of financial portfolio management to it investments. Application portfolio management apm is a discipline that allows itsd to understand and maximize the value of the states portfolio of applications. Various it solutions that offer portfolio management services tend to either cater to individual aspects of portfolio management, such as project and resource. Investments in information technology it often bear great uncertainty which arises, amongst others.
Standards and technology nist, developed an example solution that financial services companies can use for a more secure and efficient way of monitoring and managing their many information technology it hardware and software assets. This directive establishes policy and assigns responsibilities for the management of dod. The impact of project portfolio management on information. Information technology portfolio management implementation. Portfolio management implementation at the it department. You provide your email, and they send over a nice pdf guide with a. Portfolio management models management study guide.
Speaking of process, managing a project portfolio requires a transparent, fluid prioritization methodology that responds to changes in the business and ensures that resources are aligned with goals and strategy. Project portfolio management in a company strategy. During the past 20 years companies have greatly improved processes and systems for managing the operational aspects of projectportfolio. Jistem journal of information systems and technology management, brazil handler 2005, the itpm technique is a framework and a tool that results in a positive. Get up to speed on project portfolio management ppm discover the objectives. A strategic approach supplies indepth treatment of the five domains and. The security characteristics in our it asset management platform are derived from the best. Information technology portfolio management implementation secnavinst 5230.
New research reveals how to meet the challenges of. Analogies that build on financialportfolio theory or on concepts about product and researchanddevelopment pipeline portfolios which are more akin to it portfolio management than to financial. Portfolio management methods have been developed for use in technology portfolio management, information technology portfolio management, project portfolio management. Enhancing the efficiency, performance, and success of projects within oit. The top layer is the strategic goals of the company. A design process to deliver the optimal project portfolio supporting company competitiveness, exploiting information technology project management. The author of this presentation is the project leader and methodologist provider of a project portfolio.
Case study in this empirical part the project portfolio management in a company strategy implementation was described and analyzed. This instruction establishes department of the navy policies and procedures. This article is excerpted from it portfolio management stepbystep. The framework contains information about each portfolio and the investments. Business benefits of it portfolio management thinking. Information technology project portfolio governance.
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