1242 2219 Information System Economics IT PORTFOLIO MANAGEMENT

1242. 2219 Information System Economics IT PORTFOLIO MANAGEMENT

IT PORTFOLIO MANAGEMENT The basic idea: Just as an investor does not invest everything in a single stock but buys a portfolio of securities to cover different circumstances, so an organization should plan a portfolio of applications and technologies.

IT PORTFOLIO MANAGEMENT First, an overview of existing types of systems and how they developed. Definitions of information system applications – attributes and functions

IT PORTFOLIO MANAGEMENT Example of Information System Definition

IT PORTFOLIO MANAGEMENT Attribute Definitions

IT PORTFOLIO MANAGEMENT Function Definitions

IT PORTFOLIO MANAGEMENT Development Paths

IT PORTFOLIO MANAGEMENT

IT PORTFOLIO MANAGEMENT Information System Chronology

IT PORTFOLIO MANAGEMENT Future System Developments

IT PORTFOLIO MANAGEMENT

IT PORTFOLIO MANAGEMENT Comparison of IS Development Directions

IT PORTFOLIO MANAGEMENT

IT PORTFOLIO MANAGEMENT

IT PORTFOLIO MANAGEMENT Evaluation methods

IT PORTFOLIO MANAGEMENT Strategic Plan Of the Enterprise Business Organizations (that carry out plans) Impact Alignment Information Technology Opportunities Information Systems Architecture

IT PORTFOLIO MANAGEMENT Support Intellectual Work Knowledge Discussion Transactions Automate Mechanistic Work Facilitate Interpersonal Work

IT PORTFOLIO MANAGEMENT Support Intellectual Work (R&D, Process control, Design) Knowledge Discussion Transactions Automate Mechanistic Work (Accounting, Production, Ordering) Facilitate Interpersonal Work (Office systems, Conferencing, Coordination)

IT PORTFOLIO MANAGEMENT Dimensions of Portfolio Management Industry competition nature of business (manufacture, supply chain, etc. ) Organization sophistication existing portfolio balance Risk Future needs

IT PORTFOLIO MANAGEMENT Applications - Examples Financial General ledger Accounts receivable Cash flow Credit rating Production Hours worked Materials utilization Shop floor scheduling Automatic machining Robot control

IT PORTFOLIO MANAGEMENT Applications - Examples Personnel Announcements Position openings Personnel files Performance ratings Inventory deposits and withdrawals Reordering Order quantity optimization

IT PORTFOLIO MANAGEMENT Applications - Examples Decision Making Routine decisions – individual Routine decisions – group Strategic decisions - group Business Intelligence Information collection Information dissemination

IT PORTFOLIO MANAGEMENT Application Suitability – The Analysis Matrix

IT PORTFOLIO MANAGEMENT Application Learning and Success Assessment Ø Are we organized to serve that line of business? Ø Do we have an “account manager” in IS who has responsibility for that line of business Ø Is there someone within that line of business who oversees IT activity and talks the business language? Ø Do we have the attention of its management? Ø Does the line of business offer an opportunity to use systems in new ways.

IT PORTFOLIO MANAGEMENT Situation Assessment The Information Technology Strategic Grid

IT PORTFOLIO MANAGEMENT Information Technology Strategic Grid