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

Foreword

In the information age, knowledge provides a competitive edge that no business can ignore. The challenge, however, is that with all of the hype, complexity, and confusion around information technology (not to mention a healthy dose of jargon) it is often difficult to distinguish between good and bad technology investments. That's problematic, or at least it should be, because information technology is the central nervous system of most organizations, providing the tools to act rapidly to changes in the business environment. If the information technology is optimized, the organization can thrive, even in the most chaotic times. Optimizing information technology investments is not an option—it is a business mandate.

Information technology investments currently account for the majority of capital expenditures within many companies; therefore it must be treated with at least the same due diligence rigor as any other capital investments. A sound business case must exist; it must support the strategy of the organization; and it must support, and in many ways adhere to, new legislation.

We are increasingly expected to provide accurate information to multiple shareholder and stakeholder groups at light speed. But that should not be a justification for throwing caution to the wind and spending whatever it takes to accomplish that goal. Like any other investment, information technology must be actively managed throughout its entire life cycle, ensuring that both its initial and ...