1. 1242.2219 Information System Economics IT PORTFOLIO MANAGEMENT

2. 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.

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

4. IT PORTFOLIO MANAGEMENT Example of Information System Definition

5. IT PORTFOLIO MANAGEMENT Attribute Definitions

6. IT PORTFOLIO MANAGEMENT Function Definitions

7. IT PORTFOLIO MANAGEMENT Development Paths

8. IT PORTFOLIO MANAGEMENT

9. Information System Chronology

10. IT PORTFOLIO MANAGEMENT Future System Developments

11. IT PORTFOLIO MANAGEMENT

12. Comparison of IS Development Directions

13. IT PORTFOLIO MANAGEMENT

15. Evaluation methods

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

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

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

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

20. 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

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

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

23. IT PORTFOLIO MANAGEMENT Application Suitability – The Analysis Matrix

24. 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.

25. IT PORTFOLIO MANAGEMENT Situation Assessment The Information Technology Strategic Grid

26. IT PORTFOLIO MANAGEMENT Information Technology Strategic Grid