IT portfolio management is a management structure used by companies to control their technology. It has three groups: applications, infrastructure, and project management, and helps companies manage their IT activities properly and ensure that each project meets company standards.
IT (information technology) portfolio management is a management structure that a company uses to control the technology it uses in its operations. IT activities generally fall into one of three categories: planned future initiatives, current projects, and ongoing service from the IT department. IT portfolio management often has three separate groups: applications, infrastructure, and project management. Companies generally group their IT activities into these groups to manage them properly and ensure that each project meets company standards.
The first part of IT portfolio management, applications, contains all of the established IT elements used by the business. Businesses will group these items together as they represent a continuous application that the business routinely uses to complete tasks and activities. Owners and managers can use IT portfolio management to group applications by age. As technology changes quite frequently in the business environment, companies need to group items by age so they can easily determine which ones are in primary need for replacement.
The second part of IT portfolio management represents the infrastructure of a company’s IT system. Infrastructure is often the hardware component of the company’s technology systems. Servers, personal computers, cables, and other items needed to run software applications fall into this category. Keeping this information separate allows the company to determine what you use to run systems and when you should consider upgrading to newer equipment. Changes to current equipment can be from internal or external forces, such as requests from current IT staff or changes to a customer’s application system.
The infrastructure portion of portfolio management also measures the costs, personnel, and HR policies associated with the IT department. Many companies have strict standards for this department, as one dishonest employee can cripple the company’s ability to leverage technology for greater profit. IT portfolio management allows accountants to review the infrastructure and ensure that costs are within budget limits created by owners and managers.
The third part of IT portfolio management focuses on IT projects. These projects may be the result of future changes in the company’s operating environment or one-off projects. Every project faces measurements, such as return on investment. The accountants will help measure all the projects in the portfolio to ensure that each one adds value to the company without creating a drag on earnings. IT staff often work closely with accountants or other analysts to ensure that each project adds value to the business.
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