ABSTRACT

The information technology (IT) portfolio derives from the financial portfolio. It realizes a well-balanced distribution of organizational IT investigation and total optimization of organizational IT assets. This chapter provides an overview of the application of IT portfolio management. The philosophy of early IT portfolio management involved a theory that described several stages in the growth of electric data processing. Meanwhile, the Massachusetts Institute of Technology Center for Information Systems Research's IT Portfolio Framework clearly presented the assumption behind IT investment portfolio management, which became the basis of many subsequent templates for IT investment portfolio management. To motivate an organization to implement IT portfolio management, it is important to clarify the benefits that can be obtained. Portfolio management is the top level of project, programme, and portfolio management. The strategic goal of organizational management is expressed quantitatively as the expected benefit from the management of portfolios.