Portfolio Management IT Portfolio management resources guided enterprise wide

Portfolio management it portfolio management

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Portfolio Management IT Portfolio management resources guided enterprise-wide and strategic IT initiatives. To improve IT resource allocation, portfolio management prioritized projects based on the three factors: business case justification, business unit readiness to execute the change, and IT unit readiness to execute the change To avoid costs, project funding would be halted if risk-adjusted ROI is not high enough for a specific project. Also, pet projects which are those proposed based on executives` personal preference are no longer possible to be carried to execution given the accountability. Considering TCO, legacy systems would be abandoned if they are proved possessing no more value To standardize IT rates, costs are now allocated on a consumption basis as the visibility of TCO for IT was greatly improved by the new approach. The more a business program needed IT resources, the more they paid. Project Management Project management systems and DSS were put in place and routinely updated in order to give business unit’s access to the total cost of ownership for IT services. This serves as an auxiliary measure to adjust IT cost allocation; again, the more a department uses, the more it pays. The IT Architecture Group presents knowledge repositories for solutions and projects which serve as decision-supporting tools that employees need. This group also builds mobile applications to allow easy access to said tools. For example, knowledge repositories could be accessed via Microsoft SharePoint. Tacit knowledge developed throughout a project is more easily captured and transferred to explicit knowledge to be used again later on. IT Architecture Group provide professionals with information that whether to buy-or-build or a new IT component. This helped to reduce time and resource wasting in the company’s projects. The implementation of the IT Delivery group allowed Philips to develop agile project management methods and execute faster-paced projects while maintaining quality control. Different project development phases, such as initiation, execution, and closure documents, are separated to improve the quality and reduce the requirements gathering cycle by prototyping. Software coding is reused as possible to speed up development cycle and simplify IT architecture. Created in support of Information Management learning objectives (mad, Fall 2013) Page 6 of 7
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Philips IT Governance and Sourcing (continued) 1. Explain how the new IT sourcing approach better positions Philips to achieve improvements in operational excellence and product leadership. Operational Excellence The new sourcing approach enables Philips to simplify business operations and helps to increase the speed and excellence of open and organic innovation IT Architecture professionals could determine whether to self-develop or outsource new IT components, and if outsourcing, when to do. Decrease in costs is achieved and Philips could free up internal resources and use their employee skills more effectively.
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