Module 4: Managing IS Organizations Topic 8. Infrastructure Planning

Application Portfolio Management A means of bringing together existing planned, and potential information systems and assessing the business contribution. See the composite matrix of IS/IT applications (figure 1.)

IS Applications Planning Approaches Support –Traditional, decentralized, efficiency-focused, risk averse Key operational –Top-down, centralized, effectiveness-focused, risk reduction High potential –Opportunistic, decentralized, entrepreneurial, risk taking Strategic –Complex, goal seeking, coalition, risk accomodating

Applications Portfolio Management Application portfolios found in different approaches are different. Therefore, they need to be managed differently.

Applications Portfolio Management Strategy High Potential Free Marketeer Support Scarce Resourcer Strategic Central Planner Key Operational Monopolist

Applications Portfolio Management Strategy Scarce Resourcer - Support –Reactive and be a caretaker Monopolist - Key Operational –Control and follow a standard procedure Free Marketeer – High Potential –Entrepreneurial and self-motivated Central Planner – Strategic –Acquire and allocate resources necessary to achieve the strategic objectives.

IT Infrastructure Physical infrastructure –Hardware, software, telecom, networks Architecture –A blueprint of a physical infrastructure Policies –Determine how the infrastructure and its support services are managed. Management process and services –Planning and management of the facilities, vendors, technical supports

Managing Issues Linking IT investment to business needs IT investments by others Technical implications and ‘hype’ See Table 1: IT themes in the new paradigm (Lecture note p. 10)

IT Investment Justification Application specific Cost reduction in existing applications Replacement of obsolete IT IT as an enabler of overall business strategy Embracing business growth