It is easy to mix up portfolio management and enterprise architecture (EA) governance because both look after IT-business governance. However, there are some differences that you cannot overlook. While one decides the control blueprint, the other focuses on benefits realization. Which one does what? In this article at the Future of CIO, Pearl Zhu throws light on the differences between the two concepts—portfolio management and EA.
Differing Portfolio Management and EA
Design vs. Method
With EA, you can plan the governance infrastructure, while portfolio management works on the model’s mechanics. Integrated with PMO, PPM helps you align your project goals with the corporate vision. A practical governance concept would have six programs—“IT strategic planning, enterprise architecture, capital programming, assets management, risk management, and projects.” Strategic planning starts with a well-defined enterprise architecture governance model. Asset and project management approaches provide guidelines to streamline resource management.
Definition vs. Implementation
EA maps your enterprise’s skills and resources and places them accordingly for baseline, target, and transitional architectures. After the allotment, you can utilize these capabilities using portfolio management. EA concentrates on making the business better and is planned before the budget. PPM is decided after the scope and budget of the projects are decided. EA use is more widespread, while portfolio management is only for functional purposes.
Prioritization vs. Ownership
The enterprise architecture governance model prioritizes those projects that align with the strategies. Portfolio management is about managing those very projects and programs. EA untangles the demands, and PPM has the responsibility to implement them. Though the former might not look after all projects, it certainly can have a say in their scope. Project portfolio management provides more tangible results, whereas EA does not. Also, portfolios have projects with a definite end date, unlike EA governance.
To view the original article in full, visit the following link: http://futureofcio.blogspot.com/2013/08/are-portfolio-management-and-ea-same-or.html