Definition of the framework

F. W. McFarlan developed a framework (1984) with which organizations can

analyze their mix of existing, planned, 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. 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)

2. Key operational: applications upon which the organization currently depends

for success (such as inventory control, accounts receivable, personnel duties)

3. Strategic: applications that are critical for future business strategy (eprocurement,

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)

purposes

The purpose of Mcfarlen is to create a management methodology regarding management and

structure of an already existing application environment. The management methodology is

created to eliminate the problem with the missing overview and the lack of structure.