Portfolio management is a part of strategy management and business transformation.
Portfolio Management plays a significant role in portfolio strategization, integration, and rationalization, to provide visibility of the overall portfolio that is exploring a new path to the business growth, support the company's strategic objectives, and assess opportunities to realign resources and investments as appropriate for unlocking business performance.
Strategization: Portfolio Management plays a significant role in strategic planning of the potential portfolio, pondering "what if" situations showing potential scale of business benefit to be driven from the portfolio based on different mixes of programs. The potential portfolio investment needs to streamline the strategic objective alignment and accelerate future growth of the business. Make sure the investment of the business initiatives is aligned with at least one strategic objective over the total portfolio. All of the above should be supported by a robust, flexible and comprehensive set of tools to report and provide potentiality/performance metrics, which allow the portfolio to be fine-tuned over time so that it delivers maximum strategic advantage to the organization.
If the management focuses on short term value too much, their portfolio might not support long term strategy and vision in the end. If the management puts too much focus on long-term value, there may be a loss of momentum and engagement. Portfolio Management provides an “executive” view including impact analysis, reporting and alignment to strategy, leverages robust, flexible and comprehensive set of tools to report and provide performance metrics, allows the portfolio to be fine-tuned over time so that it delivers maximum strategic advantage to the organization.
Integration: Dependency, interdependency is the natural relationship between applications, capabilities, people, etc, in the hyper-connected business world. From a portfolio management perspective, the more complex the application is, perhaps there are more interdependent pieces that need to be integrated with for building differentiated competencies. It’s important to do mapping between strategy and a set of cohesive business capabilities which are developed by an integral application program portfolio. A better approach to tackling the application portfolio complexity is to integrate the multitude of business management (architecture, application, performance management, etc.) and improve the overall portfolio effectiveness.
In order to make the portfolio executable, an organization needs to make sure that enough resources are available to deliver the programs, and also manage interdependencies. The effective program management focuses on the delivery of business benefits through the identifying interdependence of a series of inter-related business initiatives. Then, portfolio management is doing the right things, focusing on the decision-making process around which programs and projects are executed based on their alignment with the goals and objectives of the organization, as well as preventing value leakage, and improving the overall portfolio health and maturity.
Rationalization: Portfolio rationalization is an activity more critical than ever because the pace of change is increasing and decision-making cycles are getting shorter significantly. It’s important to enhance the overall economic value of the portfolio in order to get the optimal return on investment. In many traditional companies the significant portion of applications are out of date, but still running to support business activities. The portfolio rationalization is an activity more critical than ever, to consolidate, modernize, and optimize by pondering what can be condensed, consolidated, and thrown away? The business value can be realized and measured by setting “S.M.A.R.T” goals and measuring things in the right way.
The periodic overview of the program portfolio would typically contain information about performance to budget, resource requirements, risk management, business value proposition, links to strategic objectives and interdependencies. Nobody can guarantee the achievement of the expected goals of a business portfolio, but their achievement's probability can be increased if the strategic management system is built and used according to the correct and complete framework. The business applications blended with current digital technology trends can deliver significant benefits to business growth, such as real-time business insight, continuously innovative products/services deliveries.
Portfolio management is a part of strategy management and business transformation. The portfolio management process itself is a governance process which is usually tailored to match the organization’s type and size of business, culture, and overall organizational maturity. Organizational management needs to gain contextualized understanding of corporate strength and weakness, optimize processes, and improve the overall corporate portfolio management effectiveness and maturity.
Strategization: Portfolio Management plays a significant role in strategic planning of the potential portfolio, pondering "what if" situations showing potential scale of business benefit to be driven from the portfolio based on different mixes of programs. The potential portfolio investment needs to streamline the strategic objective alignment and accelerate future growth of the business. Make sure the investment of the business initiatives is aligned with at least one strategic objective over the total portfolio. All of the above should be supported by a robust, flexible and comprehensive set of tools to report and provide potentiality/performance metrics, which allow the portfolio to be fine-tuned over time so that it delivers maximum strategic advantage to the organization.
If the management focuses on short term value too much, their portfolio might not support long term strategy and vision in the end. If the management puts too much focus on long-term value, there may be a loss of momentum and engagement. Portfolio Management provides an “executive” view including impact analysis, reporting and alignment to strategy, leverages robust, flexible and comprehensive set of tools to report and provide performance metrics, allows the portfolio to be fine-tuned over time so that it delivers maximum strategic advantage to the organization.
Integration: Dependency, interdependency is the natural relationship between applications, capabilities, people, etc, in the hyper-connected business world. From a portfolio management perspective, the more complex the application is, perhaps there are more interdependent pieces that need to be integrated with for building differentiated competencies. It’s important to do mapping between strategy and a set of cohesive business capabilities which are developed by an integral application program portfolio. A better approach to tackling the application portfolio complexity is to integrate the multitude of business management (architecture, application, performance management, etc.) and improve the overall portfolio effectiveness.
In order to make the portfolio executable, an organization needs to make sure that enough resources are available to deliver the programs, and also manage interdependencies. The effective program management focuses on the delivery of business benefits through the identifying interdependence of a series of inter-related business initiatives. Then, portfolio management is doing the right things, focusing on the decision-making process around which programs and projects are executed based on their alignment with the goals and objectives of the organization, as well as preventing value leakage, and improving the overall portfolio health and maturity.
The periodic overview of the program portfolio would typically contain information about performance to budget, resource requirements, risk management, business value proposition, links to strategic objectives and interdependencies. Nobody can guarantee the achievement of the expected goals of a business portfolio, but their achievement's probability can be increased if the strategic management system is built and used according to the correct and complete framework. The business applications blended with current digital technology trends can deliver significant benefits to business growth, such as real-time business insight, continuously innovative products/services deliveries.
Portfolio management is a part of strategy management and business transformation. The portfolio management process itself is a governance process which is usually tailored to match the organization’s type and size of business, culture, and overall organizational maturity. Organizational management needs to gain contextualized understanding of corporate strength and weakness, optimize processes, and improve the overall corporate portfolio management effectiveness and maturity.
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