For IT Management Professionals

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	September 30, 2005 Optimizing The IT Portfolio For Maximum Business Value by Craig Symons with Laurie M. Orlov, Samuel Bright, Katherine Brown	Average: 9  (7 ratings)

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Executive Summary

One of the most frequently used IT benchmarks measures the IT budget as a percent of the firm's revenues. The average depends on the industry and varies from 1.1% to 8.2%, but it is not uncommon for financial services firms to spend more than 10% of their revenues on IT. However, while this measures the investment in IT, few measure their return on that investment. IT portfolio management (ITPM), also known as enterprise portfolio management (EPM), offers not only the opportunity to measure that return on investment (ROI), but also provides the processes and tools needed to optimize the return on the portfolio. Forrester surveyed North American IT decision-makers, and interviewed users and vendors to better understand IT portfolio management best practices and optimization methods. Organizations that employ portfolio optimization demonstrate significant increased returns and greater business value from their IT investments.

TABLE OF CONTENTS

• IT Portfolio Management — A Tool Kit Of Disciplines For Decision-Makers
• The Current State Of IT Portfolio Management — Extremely Early
• IT Portfolio Management Best Practices
• Optimizing The IT Portfolio For Maximum Value Based On Constraints

RECOMMENDATIONS

• Portfolio Optimization Boosts The Firm's Return On IT

WHAT IT MEANS

• Competitive Advantage Derives From Smarter IT Management
• Supplemental Material
• Related Research Documents

This is an excerpt