A New Strategic Value for Money Methodology for IS/IT Project Portfolio under Variability

Abstract

Information system (IS) and information technology (IT) Portfolio value management enables to measure the intended IS/IT project portfolio value, in pursuit of strategic objectives. Yet, the captured IS/IT project portfolio value should be articulated in the different IS/IT project portfolio segments in order to measure each category value contribution. Moreover, it should consider the strategic objectives variability throughout the portfolio lifespan. Therefore, this study proposes a novel methodology for the strategic portfolio value (𝑆𝑃𝑉) calculation, using the rank order distribution (ROD) weights model for strategic objectives variability modelling, and the value for money (VfM) technique of the management of portfolios (MoP TM ) guidance based on expert judgments. Besides, this study provides a new IS/IT project portfolio categorization. An IS/IT project management office (PMO) case study demonstrates the outcome of the new methodology, which is the calculated 𝑆𝑃𝑉 of 0.68, and how it aids, decision-making and performance management, identify under uncertainty the most strategically valuable IS/IT Project Portfolio categories.