Maximizing the Financial Benefits Yielded by IT Projects While Ensuring their Strategic Fit

As competition for market space continues to increase worldwide and the information technology (IT) budget of many organizations these days comprises hundreds of projects running concurrently across different business functions, decision making units and geographical locations, selecting IT projects for investment has become a challenge in itself, not to mention the need to maximize the benefits yielded by these projects. This paper presents an optimization model, based upon balanced scorecard and minimum marketable feature modules, that makes it easier for management to maximize the financial benefits yielded by a portfolio of IT projects at the same time that ensures the strategic fit and reduces both the risk and the need for capital investment. Furthermore, the application of the model is exemplified with the help of a real world inspired example. Besides, the potential benefits to business are also analyzed. KeywordsIT Portfolio Management, Economics of Software Engineering, Balanced Scorecard, IT Investment Analysis, Minimum Marketable Features and Strategic Fit.

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