By Thorsten Frey
Due to the starting to be significance of IT-based thoughts, modern agencies face an over the top variety of proposals for IT tasks. As quite often just a fraction of those tasks will be carried out with the given potential, IT undertaking portfolio administration as a comparatively new self-discipline has got transforming into recognition in study and perform in recent times. Thorsten Frey demonstrates how businesses are suffering to discover the proper stability among neighborhood autonomy and imperative review approximately all initiatives within the association. during this context, affects of alternative contextual components at the layout of governance preparations for IT undertaking portfolio administration are verified. in addition, effects of using various organizational designs are analyzed. the writer provides insights from a qualitative empirical examine in addition to a simulative approach.
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Extra resources for Governance Arrangements for IT Project Portfolio Management: Qualitative Insights and a Quantitative Modeling Approach
87 Moreover, as discussed below, federal IT governance arrangements often also involve significant disadvantages. 5 in the context of business/IT alignment. In this context, it should be noted that Peterson’s understanding of a federal model is that IT infrastructure decisions are centralized and IT application decisions are decentralized (cf. Peterson, 2004, p. 11). Peterson also distinguishes between an IT-centric and a business-centric federal model depending on the involvement of business executives in IT decision-making (cf.
Cf. , 2000, p. 437; Peterson, 2004, p. 14. Weill & Ross, 2004, p. 85f. 145 Reprinted from Peterson, 2004, p. 14 with permission from Taylor & Francis. 5 The difference between governance and management After having discussed what IT governance is about and which mechanisms can be employed in order to implement IT governance arrangements, it is important to highlight the difference between governance and management. While IT governance is concerned with the design and implementation of structural, procedural, and relational mechanisms in order to enable appropriate IT decision-making, it is not concerned with making decisions on an ongoing basis.
These categorizations are based on dimensions like the degree of centralization, the degree of involvement and participation of local decision makers, the degree of formalization, standardization and control, the degree of business and/or IT involvement, the relationships between decision makers, the role of the CIO etc. Reprinted from Weill & Ross, 2004, p. 60 with permission (© 2003 MIT Sloan School Center for Information Systems Research). 139 The different governance archetypes and decision-making domains are combined into a framework called the “IT governance arrangement matrix” (cf.