On request from many, I am posting this article to cover the fundamentals on portfolio management.
So what is portfolio management?
There are many definitions available in different books and on the net. But, I would like to go with the standard one provided in PMI.
“Project portfolio management — or simply portfolio management — is defined as the “centralized management of one or more portfolios that enable executive management to meet organizational goals and objectives through efficient decision making on portfolios, projects, programs and operations.”
These projects or programs can be related technologically, financially, or entirely unrelated to help achieve the common business goals and strategies.
A key result of PPM is to decide which which projects to fund in an optimal manner. Project Portfolio Optimization (PPO) is the effort to make the best decisions possible under these conditions.
Enterprise Project Portfolio Management:
Enterprise Project Portfolio Management (EPPM) is the practice of taking a top-down approach to managing all project-intensive work and resources across the enterprise.
IT portfolio management is specific to the IT industry. It is the application of systematic management to the investments, projects and activities of enterprise information technology (IT) departments. Examples of IT portfolios would be planned initiatives, projects, and ongoing IT services (such as application support).
IT portfolio management contains three major portfolios or areas:
Application portfolio
Infrastructure portfolio
Project portfolio
Information Technology portfolio management as a systematic discipline is more applicable to larger IT organizations. In smaller organizations its concerns might be generalized into IT planning and governance as a whole.
In my forthcoming blogs, we will deal with each of these in more detail.
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