danskprojektledelse R&D

Using IT Portfolio Management to Improve the IT Contribution to the Business

A paper by CSC.

Quoting the paper:

The benefits of applying the principles of IT PfM are widely recognized:

Clear goals and objectives for all IT investments. In fact, IT PfM requires the  business strategy to be articulated in such detail that it guides many investment decisions – not just those within IT.

IT investments that are aligned with business objectives. CIOs report that with IT PfM they find it easier to win approval for strategic infrastructure projects because they can demonstrate how each project enables a business strategy or provides the flexibility to respond to market pressures and customer demands.

Better dialogue with the business. IT PfM requires IT and the business to negotiate a common language and framework for assessing the value of IT investments. Many CIOs told us that, after deploying IT PfM, their communication with the business improved and they actually
spent less time
discussing  IT investments.

Fewer failures. With IT PfM, bad investment proposals are abandoned more quickly because their shortcomings become obvious early. Similarly, runaway but hard-to-kill IT projects die a natural death as their failings are exposed. IT PfM also provokes discussion of the organization’s capacity to absorb change, which helps ensure it is not exceeded. Even though some good ideas may not get funded,
the
initiatives that are launched get the business attention they need.

Better risk management. Risk management is handled by designing projects to succeed – by removing barriers and managing risk rather than avoiding it.

Commitment from the business. With IT PfM, every new IT investment is a collaborative effort to improve business performance. The
business units affected
by a new IT capability understand and commit in advance to their changed roles and responsibilities.

Learning. Best-practice IT PfM establishes a feedback loop: the lessons of each investment improve subsequent business strategy, business performance and the IT PfM process itself.

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