The Chief Information Officer's Body of Knowledge: People, Process, and Technology

Chapter 12

Information Technology Portfolio Management

Pamela Vaughan

Information technology is at a critical juncture in today's business climate. The proliferation of business applications, increased scrutiny to cost-justify expenditures, and regulatory changes like the Sarbanes-Oxley Act of 2002 have contributed to an increased need for greater discipline and control within IT organizations. With seemingly exponentially increasing information requirements coupled with reduced budgets and staff, most CIOs face demand for projects that far outstrips their ability to deliver. With IT investments typically ranging from 1.5 to 7 percent of revenues, it is clear that an approach is needed to ensure that these investments meet or exceed expectations. This chapter prescribes Information Technology Portfolio Management (ITPM) as the commonsense approach to aligning, prioritizing, selecting, managing, and monitoring IT investments to ensure optimum alignment with and contribution to the organization's goals.

What Is Information Technology Portfolio Management?

ITPM is increasingly recognized as a management discipline to improve returns on IT investments and overall align IT with the business. ITPM has become a critical component in the IT business lexicon. It provides structure and consistency to the processes associated with the planning, prioritization, management, and control of IT investments. ITPM is a blend of management disciplines that combines:

A business management focus ...