ITMG624- Week 2 - Project Portfolio Management
Write an essay that discusses Information Technology Portfolio Management. Your essay should be a minimum of 5 pages and not to exceed 7 pages (including Cover Sheet and References page). The Essay should demonstrate your grasp of the concepts covered in the course material covered in weeks 1 & 2. Your essay should have at least 4 references.
The recommended format for all essays is as follows;
Paragraph four etc
ITMG624- Week 2 - Project Portfolio Management
Key areas in the portfolio project management include cost, scope, and time management. For a long time, an investment in a portfolio has been considered the best form of investment compared to a single investment. This is because portfolio investment reduces risk. Companies carrying out Information Technology projects always look at the risk and return. It is often the organization's purpose to gain maximum returns on investment. The organization must also look at the risks associated with certain projects so that these risks can effectively be controlled. Project approval happens at the executive level. However, sometimes, it could involve many stakeholders; therefore, the approval stage will be slow. Project management is easily done using the Project Management office. These perform a role in resource allocation, management, communication, and budgeting. The key phases of I.T. Projects include: initiation, design, implementation, and follow-up.
Keywords: (risk, default, project, portfolio, resources, functionality)
Information Technology Portfolio Management
Portfolio Management is a study that looks into a group of projects that have effectively been organized into one single portfolio. Project portfolio management involves looking at the project costs, the timelines so that the project can be completed in the shortest time possible, the resources of the project, and the risks that can be observed if the project was supposed to be achieved within a certain time frame (“Project Portfolio Management.,” 2002). In this information technology portfolio management essay, the following will be covered: the basic components of the project portfolio management, the key issues in the Information Portfolio management, and the effectiveness in the project portfolio management.
Project Portfolio Management
Key Knowledge Areas in Project Management
The three key knowledge areas in project management and, to an extent, the I.T. Project management are time management: this is where the project implementation committee members achieve all the project's goals within a set time (DiFranza, 2019). Scope management is the comprehensiveness of achieving all the goals, activities, and deliverables and ensuring that all the required work has been achieved within a set duration of time. Finally, there is cost management: this is the idea that suggests that a given project should be achieved at the least possible cost. One of the main objectives in businesses is profit maximization, so the managers will always attempt to ensure that the projects are achieved at the least cost to maximize any benefit that arises from them.
The Idea of Information Technology Portfolio management
Project portfolio management comes about because the managers know that a portfolio of a company's investments can be more useful than a single investment in managing risk or reducing the risk that could arise from the investment (“Project Portfolio Management.,” 2002). Several companies break down their portfolios as a result of the kind of priorities they have regarding certain specific business investments. To ensure that the portfolio is performing at the rate at which it was expected to perform, some companies require to develop the needed metrics that can be used in the measurement of the performance of the portfolio.
When companies are discussing projects, they do not only look at the cost of the projects, but they also check to see the likely risks and the returns of the projects (“Project Portfolio Management.,” 2002). Companies look at portfolios that will bring them maximum return. There are few companies that will focus on portfolios that do not have a lot of returns because the planning process in project portfolio management is so intricate. It takes a lot of money and a lot of time for the companies to plan the intricate details of the project management; hence the money invested in the project must be recouped.
Project approval often takes place at the executive level in the organization. However, there are some companies where the approval process always involves a big number of people (Bonham & Ebrary, 2005). This organization has a large number of stakeholders whose input must be considered before the project can even move on to the next level.
Information Technology Project Portfolio Management
Some company projects are spread over business units. I.T.-based projects are examples of these projects. The project portfolio management in Information Technology may also involve many other concepts such as executive information systems and the program management processes. The I.T. PPM has the active support of the executive level of the company. It is audited to ensure that the initiatives in the project are achieving the functions that they were intended to achieve. The Information Technology Project Management is, therefore, the function of complete planning, executing, reporting, and monitoring the implementation of the Information Technology projects (Bonham & Ebrary, 2005). These projects are effectively monitored from when the project is initiated in the organization until the project is completed and results obtained or the deliverables are now handed to the project owners.
The Six Phases of the Information Technology Project
In the organization, the six phases of the Information Technology project are as follows: the project initiation phase, defining the project, the design phase of the project, the development phase, carrying out the implementation activities in the project, and follow up (Project Manager.com, n.d.). The follow-up is the last phase in the project management, where there is monitoring and evaluation to determine if the project was executed in the right manner. The follow-up activity is similar to a company providing after-sales activities after achieving a sale to fully satisfy the customer.
In the project initiation phase, there are key questions asked, and the organization should ensure that answers to the questions are obtained (Project Manager.com, n.d.). The questions asked are: “why is this project needed?’ The answer to this question will compel the organization to carry out a cost-benefit analysis that will be used in the determination of the likely benefits and the costs associated with the project. Other activities in the initiation stage include planning and carrying out a feasibility study of the likely project.
In the definition phase, there is the outline of the project, and the organization has finalized to determine the key requirements of the project (Project Manager.com, n.d.).
Sometimes one single design may not be sufficient to achieve the success of the project. In this phase, there will be the determination of multiple designs. If the organization has the best engineers or developers, they will also develop the best prototypes, and the most appropriate one for the project will be selected.
In development, the organization must ensure that it has the right materials it needs for the project, and apart from that, the plan must be clear enough to all the team members involved in the project so that they can know or have an idea of how the project should be implemented. If the raw materials for the project are not enough, the project manager has to request new materials.
Monitoring, controlling, and risk management are part of the project's process, and the final stage is carrying out follow-up. In doing follow-up, the organization may determine the importance of carrying out risk minimization or adding any functionality depending on the client's preferences.
The functions of the I.T. Project Management Office (PMO)
The Information Technology project management office can be instrumental in resolving problems that may occur during the implementation phase of the project (Bonham & Ebrary, 2005). The office can have a team of auditors that work hard to ensure that the project progress is going according to the company's plan and there is high quality in the implementation of the program. It carries out efficient communication of any concerns to the senior management. It can offer guidance to be used in the allocation of new resources.
The Information Technology Project Management Office can perform a wide variety of functions. Under the project manager's leadership, the following functions are performed: setting the goals of the project and crafting the needed plans so that the goals are achieved, budgeting for the project, creating a project schedule, and ensuring that all activities performed are according to the schedule. The project management office can generate status reports (Bonham & Ebrary, 2005). Management of resources and equipment and the organization of meetings between the team members and the project managers is also an important function of the project management office.
Risks in Information Technology Project Management Portfolio
Risk can loosely be defined as the possibility of an unwanted, unfavorable and unpleasant event occurring. Some of the risks include Default risk: This is the risk that the organization may not be able to pay back a financial assistance facility it has borrowed from an institution. The marketability risk occurs when an investment cannot be sold fast enough, or the security of a firm cannot get the customers at the faster rate that the organization would have loved. Investments need to be sold quickly enough so that the company can generate adequate returns on its investments. Other common risks include seniority risk, maturity risk, etc. (Bonham & Ebrary, 2005).
The efficiency and effectiveness of the organizational project management team can assist the company in reducing some of these risks (Peerasit Patanakul, 2013). The project management office can be efficient in carrying out its tasks. It is also required that adequate planning and budgeting be done so that at no stage does the project stall. Companies often consider risk and return in project portfolio management, and the project is often accomplished in different phases.
Bonham, S. S., & Ebrary, I. (2005). I.T. project portfolio management. Artech House.
DiFranza, A. (2019, June 27). 5 Time Management Strategies for Project Managers. Northeastern University Graduate Programs. https://www.northeastern.edu/graduate/blog/time-management-project-management/
Peerasit Patanakul. (2013). Effectiveness in project portfolio management. Project Management Institute.
Project Manager.com. (n.d.). I.T. Project Management: The Ultimate Guide. ProjectManager.com. https://www.projectmanager.com/it-project-management
Project Portfolio Management. (2002). Computer World, 36(12), 152. https://web-p-ebscohost-com.ezproxy2.apus.edu/ehost/detail/detail?vid=2&sid=eb61edd7-e478-44aa-8b7d-013758703d34%40redis&bdata=JkF1dGhUeXBlPWlwJnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=aci&AN=6422803