Managerially, oversight of IT-enabled investment portfolio assets should be performed throughout their life cycle. Operationally, portfolio management takes a holistic view of an entity’s overall IT strategy, while sustaining clear and active linkage between the entity’s strategy and the portfolio of IT-enabled investments. Whereby, when properly deployed, IT portfolio management can assist in gaining control of IT projects and deliver meaningful value to the entity’s lines of business.
The IT portfolio should be managed like a financial portfolio. Thus, riskier IT investments should be balanced with more conservative investments, and the mix constantly monitored to assess: which projects are on track, which need remediation and which should be shut down. Often portfolio management involves establishing scorecards for projects, infrastructure, and applications to enable decisions on a measurable basis.
“View Part I of the Governance and Managing IT Projects series here“