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PO1.6 - IT Portfolio Management

This topic is intended to enable collaboration and sharing of information to facilitate a better understanding and approach to implementing this COBIT control objective based on the risk, value and guidance provided by its corresponding control practices.

COBIT Control Objective PO1.6 IT Portfolio Management is contained within Process Popup Define a Strategic IT Plan

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IT Portfolio Management

Actively manage with the business the portfolio of IT-enabled investment programmes required to achieve specific strategic business objectives by identifying, defining, evaluating, prioritising, selecting, initiating, managing and controlling programmes. This should include clarifying desired business outcomes, ensuring that programme objectives support achievement of the outcomes, understanding the full scope of effort required to achieve the outcomes, assigning clear accountability with supporting measures, defining projects within the programme, allocating resources and funding, delegating authority, and commissioning required projects at programme launch.

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Value Drivers

  • Efficient IT resource management
  • IT initiatives continuously monitored and evaluated
  • The right mix of IT initiatives for a positive and risk-adjusted return on investment (ROI)
  • Performance and resource requirements of IT initiatives monitored against defined targets
  Risk Drivers
  • Missed business opportunities due to a too-conservative portfolio
  • Low ROI due to a too-aggressive portfolio
  • Available IT resources not leveraged
  • Deviations in IT plans not identified

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  1. Based on strategic and tactical IT plans, ensure that the business and IT are involved in identifying and defining IT-enabled investment programmes, IT services, assets and related IT projects.
  2. Develop and promulgate prioritisation schemes relating prioritisation criteria to business goals and technical requirements. Project prioritisation may be modified due to the availability of scarce resources, implementation alternatives, funding methods, risks, and timing of competing or complementary projects.
  3. Evaluate IT-enabled investment programmes, IT services and assets against prioritisation criteria to establish and update the portfolio of IT-enabled investment programmes. Determine how the portfolio supports the achievement of measurable business outcomes.
  4. Translate the selected programmes and related projects into required effort, resources and funding, and obtain approval from the business.
  5. Translate the programmes into clearly defined projects with required resources and funding.
  6. Communicate projects that will be delayed, postponed or not continued so that business and IT management can use resources in an efficient and effective manner.
  7. Obtain the required authority to launch the approved projects within the selected programmes.

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