Tuesday, December 14, 2010

McFarlan’s portfolio Framework

Definition:
This is a strategic grid that allows visualization of relationship between IT strategy and business strategy and operations.

Purpose:

It is a framework with which organizations can analyze their mix of existing (Present), planned (future), and potential information systems.

The framework, which can be applied to any type of application, including e-commerce, can be viewed as a four-cell matrix as shown below:



NB: X axis represents impacts of the project on the strategy.
Y axis represents impact of project on IT operations.

Applications are classified into a collection (portfolio) of the following four categories:

1. High potential:
Applications that may be important in achieving future business success (such as intelligent systems or human resources planning, Data mining, direct marketing)

2. Key operational:
Applications upon which the organization currently depends for success (such as inventory control, accounts receivable, personnel duties, Online scheduling/parts ordering/maintenance)

3. Strategic:
Applications that are critical for future business strategy (e-procurement, extranet, enterprise resource planning)

4. Support:
Applications that are currently valuable and desirable (but not critical) for business success (such as videoconferencing and multimedia presentations, Account tracking, online training)

No comments:

Post a Comment