According to market research firm Meta Group Canada, CIOs who employ portfolio management practices are likely to boost their IT efficiency.
The firm recently conducted a survey of Global 2000 organizations and found that those who embraced the methodology – broadly defined as managing IT assets with long-term, company-wide economic goals in mind, and prioritizing investments with an eye to balancing value, risk and costs – cut their IT operating costs by as much as 28 per cent.
However, the poll also found that only 35 per cent of respondents actually adhered to those principles.
Meta recommends adopting practices and principles that continually align IT pressures with business demands. According to Meta, there are three main portfolio categories, each directed at a specific business need:
Run the business (RTB): Core and non-discretionary costs such as IT services that enable fundamental business processes and operations;
Grow the business (GTB): Costs associated with discretionary enhancements to support basic business change; and
Transform the business (TTB): Investments designed to deepen penetration into an existing market, and additional venture funding intended to reach and penetrate new markets.
According to Meta, each company requires a different spending balance, but most organizations do not have the tools in place to get the appropriate level of visibility into their investment mix.
