The promise of IT portfolio management managing investment portfolios a dynamic process pdf the quantification of previously informal IT efforts, enabling measurement and objective evaluation of investment scenarios. Debates exist on the best way to measure value of IT investment.
As pointed out by Jeffery and Leliveld, companies have spent billions of dollars on IT investments and yet the headlines of mis-spent money are not uncommon. IT industry and academia by positioning IT as an expense similar to utilities such as electricity. IT portfolio management started with a project-centric bias, but is evolving to include steady-state portfolio entries such as infrastructure and application maintenance. IT budgets tend not to track these efforts at a sufficient level of granularity for effective financial tracking.
The concept is analogous to financial portfolio management, but there are significant differences. Finally, assets in an IT portfolio have a functional relationship to the organization, such as an inventory management system for logistics or a human resources system for tracking employees’ time. This is analogous to a vertically integrated company which may own an oil field, a refinery, and retail gas stations.