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Ebook IT information technology portfolio management step-by-step: Part 2

(BQ) Part 2 book "It information technology portfolio management step-by-step" has contents: Building the IT portfolio, the IT portfolio management market and industry provider assessment methodology. | chapter 5 Building the IT Portfolio INTRODUCTION Overview There is no single best practice for building or improving the IT portfolio. IT portfolio management is a fluid and dynamic process of trying to create and maintain the perfect homeostasis between optimizing capacity and demand against a series of criteria and constraints whereby: • New discovery initiatives and projects are evaluated, selected, and prioritized • Priorities of active projects are constantly being updated and evaluated • Existing assets may be maintained, reengineered, phased out, or repositioned1 Building and maintaining the IT portfolio is a balancing act that is both an art and a science. It is an art due to the nonnumeric, subjective, qualitative, intangible, and uncertain variables factored into evaluating and assessing IT investments and the IT portfolio. It is a science due to the numeric, objective, quantitative, tangible, and reliable information and data that are also used for evaluation and assessment. The importance and criticality, and thus the weighting and priority, of the art and the science vary by company and by industry. In addition, rankings of these factors are constantly being adjusted due to continuous internal and external changes and events. There are three critical factors to keep in mind throughout this chapter: 1. The IT portfolio management process and framework do not make decisions—people do! 2. All models shown in this chapter, however sophisticated, in and of themselves are only partial representations of the realities they are meant to reflect. 176 chapter 5 building the it portfolio 3. People with varying functional and disciplinary perspectives must buy in to the IT portfolio management process for it to be successful.2 Building the IT portfolio employs portfolio management techniques for investment, resource planning, and decision making to identify and select trade-offs involving costs, benefits, risks, and timing. Trade-offs for IT portfolio .