1242.2219 Information System Economics IT PORTFOLIO MANAGEMENT.
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1242.2219 Information System Economics IT PORTFOLIO MANAGEMENT
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Transcript of 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 MANAGEMENTAttribute Definitions
IT PORTFOLIO MANAGEMENTFunction Definitions
IT PORTFOLIO MANAGEMENTDevelopment Paths
IT PORTFOLIO MANAGEMENT
IT PORTFOLIO MANAGEMENTInformation System Chronology
IT PORTFOLIO MANAGEMENTFuture System Developments
IT PORTFOLIO MANAGEMENT
IT PORTFOLIO MANAGEMENTComparison of IS Development Directions
IT PORTFOLIO MANAGEMENT
IT PORTFOLIO MANAGEMENT
IT PORTFOLIO MANAGEMENT
Evaluation methods
IT PORTFOLIO MANAGEMENT
Strategic PlanOf the
Enterprise
InformationSystems
Architecture
Information Technology Opportunities
Business Organizations
(that carry out plans)
Alignment
Impact
IT PORTFOLIO MANAGEMENT
Knowledge Discussion
Transactions
Facilitate Interpersonal
Work
SupportIntellectual
Work
AutomateMechanistic Work
IT PORTFOLIO MANAGEMENT
Knowledge Discussion
Transactions
Facilitate Interpersonal
Work(Office systems,Conferencing,Coordination)
SupportIntellectual
Work(R&D,
Process control,Design)
AutomateMechanistic Work
(Accounting, Production, Ordering)
IT PORTFOLIO MANAGEMENT
Dimensions of Portfolio Management
Industrycompetitionnature of business (manufacture, supply chain, etc.)
Organizationsophisticationexisting portfolio balance
Risk
Future needs
IT PORTFOLIO MANAGEMENT
Applications - Examples
FinancialGeneral ledgerAccounts receivableCash flowCredit rating
ProductionHours workedMaterials utilizationShop floor schedulingAutomatic machiningRobot control
IT PORTFOLIO MANAGEMENT
Applications - Examples
PersonnelAnnouncementsPosition openingsPersonnel filesPerformance ratings
InventoryInventory deposits and withdrawalsReorderingOrder quantity optimization
IT PORTFOLIO MANAGEMENT
Applications - Examples
Decision MakingRoutine decisions – individualRoutine decisions – groupStrategic decisions - group
Business IntelligenceInformation collectionInformation dissemination
IT PORTFOLIO MANAGEMENT
Application Industry Organization Risk Future needscompetition nature of
businesssophisti-
cationexistingbalance
FinancialProduction advanced requires medium unbalanced high essentiual
PersonnelInventoryDecision makingBusiness intelligence
Application Suitability – The Analysis Matrix
IT PORTFOLIO MANAGEMENT
Application Learning and Success Assessment
Are we organized to serve that line of business?
Do we have an “account manager” in IS who has responsibility for that line of business
Is there someone within that line of business who oversees IT activity and talks the business language?
Do we have the attention of its management?
Does the line of business offer an opportunity to use systems in new ways.
IT PORTFOLIO MANAGEMENT
Situation Assessment The Information Technology Strategic Grid
Future strategic importance
low high
high strategic
Cur
rent
S
trat
egic
im
port
ance
low factory transition
Strategic impact of application
development portfolio
low high
high Factory strategic
Strategic impact of existing systems
low support turnaround
IT PORTFOLIO MANAGEMENT
Information Technology Strategic Grid
Future strategic importance
low high
high strategic
Cur
rent
S
trat
egic
im
port
ance
low factory transition
