McFarlan's portfolio framework is a formulation model in which the organizations can analyze their mix of existing, planned, and potential information systems. This is a descriptive structure that helps us understand and classify the relationships among strategic management, competitive strategy, and information technology. It can be applied to any type of application, including e-commerce. The following figure shows this portfolio framework that can be viewed as a four-cells matrix:
McFarlan's Portfolio Framework (1984)
As shown on the figure above, the applications are classified into four categories of collection (portfolio), such as:
Strategic: applications that are critical for future business strategy (e-procurement, extranet, enterprise resource planning)
Support: applications that are currently valuable and desirable (but not critical) for business success (such as videoconferencing and multimedia presentations)
McFarlan's Portfolio Framework (1984)High Potential: applications that may be important in achieving future business success (such as intelligent systems or human resources planning)
Key Operational: applications upon which the organization currently depends for success (such as inventory control, accounts receivable, personnel duties)
Key Operational: applications upon which the organization currently depends for success (such as inventory control, accounts receivable, personnel duties)
Strategic: applications that are critical for future business strategy (e-procurement, extranet, enterprise resource planning)
Support: applications that are currently valuable and desirable (but not critical) for business success (such as videoconferencing and multimedia presentations)
In summary, the application portfolio is a mix of computer applications that the information system department has installed or is developing on behalf of the company.
Source: http://repository.binus.ac.id/content/M0304/M030459558.pdf
Source: http://repository.binus.ac.id/content/M0304/M030459558.pdf
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