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IT Portfolio management step by step - Maizlish B

Maizlish B, Handler R. IT Portfolio management step by step - John Wiley & Sons, 2005. - 401 p.
ISBN.: 978-0-471-64984-8
Download (direct link): itportfoliomanagement2005.pdf
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business analytics
Dispersed data management platforms, convergence of structured and unstructured information management systems
Reporting is inadequate (lack of performance measurement)
Budget process is inadequate IT department has failed to demonstrate ROI Risk exposure has significantly increased as a result of recent cost pressures Lack of performance planning: unclear objectives, unclear strategy IT vendors/service providers have failed to demonstrate ROI Relations with internal business managers/users have deteriorated IT vendors and service providers are not meeting service levels
IT department is not meeting internal service levels
Quality of IT services has significantly declined as a result of recent cost
pressures
Relations with IT vendors/service providers have deteriorated The IT workforce’s productivity is down
Î Key Issue ? Issue ? Nonissue I 0% 20% 40% 60% 80% 100%
(multiple responses allowed)
32%
33%
24%
17%
44%
45%
45%
46%
20%
22%
32%
37%
12%
4%
5°/,
7%
5°/<
4%
45%
43%
51%
51%
28%
IT organizations blame lack of measurement or inadequate measurement as key performance roadblocks
IT PORTFOLIO MANAGEMENT MATURITY 45
maturing application development from ad hoc software development processes that produce unpredictable results to a self-improving environment that produces quality software with predictable results. The CMM is effective in this regard and has spawned maturity models in other knowledge areas (e.g., project management) to bring discipline and corresponding quality to them. It is in this spirit that we put forth an IT portfolio management maturity model to bring quality and self-improvement to the application of portfolio management and enable better IT decision making.
Exhibit 2.3 shows the five basic levels of the model, along with the key objective^) that would drive an organization to want to progress to the next level. Level
0, admitting, is the starting point. At level 0, recognition of the benefits of applying portfolio management to IT is identified. Moving to level 1, communicating, requires that a portfolio be created to communicate interrelationships of IT assets and/or projects. Level 1 can be thematic or holistic. Relative accuracy is more important than precision at level 1. Whereas level 1 can be a one-time event, level
2, governing, requires that IT portfolio management be officially recognized with governance—prescribed processes, allocated people, and approved policy—to enable it to live within a company.
EXHIBIT 2.3 IT PORTFOLIO MANAGEMENT MATURITY MODEL
Linking portfolios to one another and operational system to enable sense and respond
Optimizing
(4)
Refining the detailed underlying processes to ensure quantitative metric accuracy
Managing
(3)
People, processes, and policy to make portfolio management a common practice
Governing
(2)
Using portfolios to communicate
Communicating
(1)
Admitting
(0)
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