Empirical challenges in the implementation of IT portfolio management: A survey in three companies

Abstract

The study explores the implementation challenges of Information Technology (IT) portfolio management in three companies. The portfolio approach to IT assets is significant for enabling organisations to make effective use of limited resources by prioritising IT initiatives and also for monitoring and evaluating their performance. In practice, the process facilitates the provision of necessary information for decision makers, allowing them to make rational decisions about IT investments. We found that there is a significant gap between IT portfolio management as discussed in the literature and its actual practice. The analysis showed that there was high flexibility when specifying IT projects, which caused companies to implement IT portfolios that were too broad. As a consequence, resources were not effectively utilised, and IT portfolio evaluations post implementation were rarely conducted. Our research contribution identifies important gaps to be filled in the literature and presents case studies related to IT portfolio management.