A portfolio is a term which often emerges in the society when they watch television or read a newspaper. Seemly, this term more relates to the condition of the company, people, or the current field. Meanwhile, information technology portfolio management (ITPM) is the implementation of the systematic management. The implementation refers to the activities, projects, and the investment of the Information Technology (IT) enterprise departments. Another is the combination of methods and tools to control, measure, and increase returns on IT investment and the other business goals.
All about the Information Technology Portfolio Management
Information technology portfolio management focuses more on a project-centric bias but it does not include steady-state portfolio entries such as application and infrastructure maintenance. ITPM is distinct from IT financial management because it has a directive, strategic goals in determining what to continue investing. As your information, ITPM has three types including:
1. Application Portfolio: This portfolio management focuses on comparing spending on established systems according to the relative value to the organization.
2. Infrastructure Portfolio: It is for an organization’s information technology and infrastructure management (IM). Meanwhile, IM is the management of vital operation components, such as data, processes, equipment, policies, external contacts, and human resources for overall effectiveness.
3. Project Portfolio: This type especially addresses the issues about the reducing investment overlaps in situations where reorganization or acquisition occurs, development of innovative capabilities in terms of potential ROI, or comply with legal or regulatory mandates.
Applying ITPM has various benefits for IT investments including:
· Portfolio management becomes the biggest advantage of the investment methods and approaches central oversight of budget,
· risk management
· strategic alignment of IT investments management and demand
· How to implement the information technology portfolio management:
· Risk profile analysis: find out what risks are associated with it and what needs to be measured.
· Determine the Diversification of technologies, projects, and infrastructure.
· Continuous Alignment for business goals
· Continuous Improvement (investment adjustments and lessons learned).
Next, there are three main areas of information technology portfolio management:
1. Framework and Processes to plan, create, balance, communicate and assess to the execution of the IT portfolio. For best-practice companies, these processes are standardized, consistent, and visible across the enterprise. These processes are consistent, visible, and standardized across the best-practice enterprise.
2. Tools which analyze data and information such as, costs, value, benefits, risks, architecture, requirements, and alignment to strategic and business objectives. The tools take data and information from the strategic intent, strategic plan, strategic objectives, and business.
3. A common business governance and taxonomy. It defines and communicates the principles, policies, accountability, criteria, guidelines, control mechanisms, and the range of decision-making authority.
Yeah, you have read lots about the information technology portfolio management and hopefully, you more understand about it. By knowing the ITPM, you will be easy to determine about the field and sometimes the companies. In case you also play in the investment business, you have to make your portfolio. So, you can trace the data and other information that will be useful in the future. Truthfully, implementing ITPM in all business is very important and must be done as soon as possible. Therefore, check your enterprise and make it soon.