Abstract
The management of IT portfolios in most enterprises is a complex and challenging ongoing process. IT portfolios typically contain large numbers of inter-related elements. In this paper, we present a model and a method for determining and evaluating IT portfolio options for use as a decision aid in the ongoing management of the portfolio. Business benefits of the portfolio options are articulated by linking IT portfolio elements to componentized business services. Characteristics of the IT portfolio elements are abstracted to a level of granularity suited for portfolio analysis. Our model allows various forms of uncertainty that are utilized in the evaluation. Our evaluation method determines a set of portfolio options with the associated cost/benefits tradeoffs. Business constraints and pruning methods are used to present only the relevant and available options and their tradeoffs to the IT portfolio manager.
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