Mastering the Art of Portfolio Management
||Online News published in DMReview.com
December 10, 2001
To keep pace with their peers and develop a better handle on the constantly changing information technology market, chief information officers need to master the core competencies of IT portfolio management and value management, suggests new research from META Group. These disciplines are key to changing the perception of IT as a cost center.
META Group research shows that 70 percent of IT organizations are still perceived as cost centers by their business counterparts, rather than as value centers. With a first-time downturn in technology spending forecast for 2002, CIOs face the daunting tasks of proving their leadership ability and effectively communicating the value of the IT organization to the business executives in their company.
According to META, successful CIOs must develop an IT portfolio management technique as an additional core competency. Much like a financial portfolio, IT portfolio management is a disciplined approach for managing an organization's technology assets as well as individual projects. The methodology can ultimately deliver the sustainable balance of value and risk desired by businesses.
"With more than 50 percent of organizations cutting IT budgets, often by more than 20 percent, CIOs don't have much room for error," says Louis Boyle, a vice president in META Group's Executive Directions service. "The IT organization has to communicate very clearly with the business to better understand its objectives and ensure that their needs and expectations are aligned.
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