Governance in IT Portfolio Management - An Approach to Consider Strategic Alignment in IT Assessment

IT costs are the second biggest cost component in service industries, topped only by HR costs. They are steadily increasing in other industries as well. At the same time, many IT investments do not achieve their objectives due to inadequate methods in IT assessment implying bad allocation of resources. To meet the requirements of ITPM methods deduced from the main focuses of IT-Governance the consideration of strategic alignment in calculating the value propositions of IT Portfolios is essential. Against this backdrop, an approach to quantify strategic alignment and to consider it in determining the value of an IT Portfolio is presented in this paper.