IT portfolio management is about analyzing IT applications and their feasibility from the business perspective. It helps you discover the various issues in your projects and portfolios and address them before performance drops. IT organizations allocate budget to upgrade portfolios. In this article at Tactical Project Management, Andrew Makar shares the objectives and advantages of using IT portfolio management.
Evaluation Through IT Portfolio Management
You must understand the pulse of your portfolio. Monitor project progress, budget allotment, associated risks, and the governance framework designed for the projects. If you must use a tool for IT portfolio management, keep in mind that it should fulfill your organizational complexities. So, what are the objectives that you accomplish through IT portfolio management and the related benefits? Find out below:
Fulfilling Organizational Objectives
- Build a centralized database for projects, functions, and processes.
- Provide clarity on project USPs and enable stakeholders to see the value.
- Assemble the right set of projects to speed up the revenue stream.
- Help in informed executive decision-making.
- Focus on projects per the budget allotted.
Advantages of IT Portfolio Management
- A one-stop information center for all projects helps stakeholders and steering committee to find relevant data faster.
- Managers can examine whether they are going overboard with the budget with greater visibility.
- You can identify projects that have stopped providing value or generate revenue and shut them down. You can club or start other projects that have similar strategic value instead.
When you align IT portfolio management processes with project management activities, you do not have to create separate and multiple project status reports. With the centrally available data from all projects, the authorities can compare the cost efficiency of all past and new projects from various departments instead of a few. If the ROI for a project is low, you can halt or defer it and reallocate the budget to the portfolio’s high-performing ones. Instead of following the rules blindly, IT portfolio management equips you with data to take the next measured steps.
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