Portfolio Approach to Information Systems

Information system (IS) projects often meet with disaster due to: 1. failure to assess individual project risk, 2. not considering the aggregate risk of a portfolio of projects, and 3. failure to realize that various projects demand different managerial approaches. Project risk is related to project...

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Bibliographic Details
Published in:Harvard business review 1981-09, Vol.59 (5), p.142
Main Author: McFarlan, F Warren
Format: Magazinearticle
Language:English
Subjects:
Automation Data Processing
Contingencies
Customer information files
Implementations
Information systems
Project management
Risk
Structure
Technology
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Summary:Information system (IS) projects often meet with disaster due to: 1. failure to assess individual project risk, 2. not considering the aggregate risk of a portfolio of projects, and 3. failure to realize that various projects demand different managerial approaches. Project risk is related to project size, experience with the technology, and the amount of structure in the project. Based upon these factors, risk can be assessed for each project, and an aggregate risk profile can be developed for all projects so that risk will not be out of line with corporate goals. There is no single, correct way to manage a project. There are actually 4 principal types of project management methods. Projects themselves fall into several different categories: 1. high structure-low technology, 2. high structure-high technology, 3. low structure-low technology, and 4. low structure-high technology. Tools in project management include: 1. external integration tools that link the project team to users, 2. internal integration that makes the team work as an integrated unit, 3. formal planning tools to structure task sequence and estimate the time, money, and resources needed, and 4. formal control mechanisms to evaluate progress and find discrepancies.
ISSN:0017-8012