Four several objectives of management objectives, it is required to invest in IT. It is resulting in different asset classes. In addition, each of the assets classes has distinctive objective as well as a unique risk-return profile. On the other hand, there are any other investments in portfolio, in which IT portfolio need to be balanced in order to achieve the alignment with business strategy as well as the desired combination of short along with long term pay off. Moreover, several organization have adopted IT portfolio management in order to assist IT prioritization. It gives powerful business-oriented lens that is familiar to the most executives. In the present study, general system management, structure, forms and culture of the organization are discussed along with portfolio alignment and identifying business value.
Management of information system
Archibald and Archibald (2016) stated that it is important for an organization to identify general systems management. Matrix of Subsystems is one of the factors in general system management. Hence, instead of creating the system where flows of decisions are downward from higher authority to low through the staffs that are lower on chart of the organization, it is required to create various systems working together. Creating departments having own structures can interrelate with different departments as required. In this particular way, each of the areas of the company requires product development, sales and marketing as well as manufacturing along with accounting in the organization (Turner 2014). It can function like own organization. The departments are existed under traditional hierarchy by using general systems theory and works as one of the independent entities, which are occasionally achieve the mutual goals.
Schwalbe (2015) commented that the general systems theory in the organization has multiple goals. In addition, each department develops its own objectives serving the organization in general. However, it operates like motivators for department of the organization. Moreover, the departments are partner with each other on the shared goals sometimes, and share outcomes from the achievement of objectives that efforts with extra departments.
Project Orientation is included in the general systems theory. Hence, it is required to organize independently for operating the departments through creating the projects. The projects become one of the focal points for creating information as well as resources (Nelson and Staggers 2017). The project manager needs to serve as one of the leaders coordinating the requests for the inputs and it comes from several departments. On the other hand, transformation is included in the general systems theory that provides an organization growing as well as changing according to feedback from the outside as well as inside the organization. Hence, enabling the organization in order to change with latest information through providing the departments power in order to change them to be effective or ineffective. Stettina and Hörz (2015) asserted that the reason behind it is the structure that is not hierarchical and the departments need not have permission for the change. In this way, responding to the input from environment of the business as well as feedback from the internal departments is required to develop in the organization. Permanence is included in the traditional hierarchies that has tendency to develop to ineffectiveness point (Love et al. 2014). In an organization developing on the general systems theory can be continued indefinitely. The cause for this is the changes over the time as well as it becomes increasingly responsive to the developments in respective marketplace.
It is important to have proper understanding structure of the organization. In the present case, structure of the organization can be explained as followed.
Figure 1: Organizational structure
(Source: Created by Author)
The values and well as well as behaviors of the organization contribute to unique social as well as psychological environment of the organization (Rosemann et al. 2015). In addition, organizational culture includes expectations, experiences and philosophy as well as values of the organization. It holds the self-image and inner workings as well as interactions with outside world. Future expectations are based on the shared attitudes, beliefs as well as customs rules. It has been developed over time as well as considered as valid.
The ways in which the organization can conduct business, treats of the employees, consumers as well as the wider community involved in the organization (Aouni et al. 2014). The extent to which freedom is allowed in the process of decision making and developing the new ideas along the personal expression involved it. It affects productivity and performance of the organization. It provides the guidelines on the customer care as well as service. In addition, product quality as well as safety, attendance along with punctuality is included for the environment. It also extends to perform methods of production, marketing as well as the advertising practices and creation of new products. The culture of organization is unique for each and the hardest things to have changes.
Portfolio management is one of the procedures in order to ensure that the organization or the department spends scarce resources on specific work, which is one of the most valuable factors in the organization (Jiang et al. 2014). Practice portfolio management in the organization involve the process that helps in order to ensure that is the most valuable work and approved as well managed across the entire organization. In addition, practicing for portfolio management in the departmental level will provide the same function as well as lower level.
The department leaders do not understand the process of budgets that are spent on people and cannot validate with the work that is being funded as most important. It will find under the greater scrutiny as well as second-guessing in future (Kaiser et al. 2015). In addition, portfolio management can assist the department as most difficult and questions about the work performed as well value provided by the organization. In general, the value of utilizing the portfolio management approach in order to manage the investments can be described as followed.
It enhances allocation of the resources. In addition, there are low value projects and projects in trouble that squeezes the resources as well as does not allow in the valuable projects that can be executed (Daniel et al. 2014). One of the critical steps is to prioritize own work in the departments. On contrary, only part of the process involved in the business is to make true portfolio management based on the organization. It requires prioritization of doing work in all the departments. Moreover, more effectively allocation of labor as well as non-labor has resources that can be managed in the portfolio. Young and Conboy (2013) mentioned that the process includes equipment and software as well as outsourced work. Outsourcing the project for instance as well as doing own labor does not included in the part of portfolio.
Hence, it is required to improve Scrutiny of the work. In some of the departments the managers are involved in making funding decisions for own work as well as give open challenge. Portfolio management needs the work to be approved by the key stakeholders and the proposed work needs more scrutiny (Grovese et al. 2016). It removes the funding for potential work in different areas. However, as stewards of department's money, executive of the organization has responsibility for approving and executing the work. It needs to be given absolutely highest priority and value. There is more openness about authorization of the process. Hence, using the portfolio management procedure removes clouds of the secrecy on the procedure of getting funded. Thus, the process of business planning allows proposing work as well as ensures that people understand the process. It is followed to the authorized work.
Business Valuation is one of the exercises that need to be appropriately undertaken by the organization. It provides an unbiased and credible assessment of the business value. There are several circumstances in the modern business (Müller et al. 2014). The valuations of the business are important. On the other hand, the process includes financial reporting and legal dispute as well as fund raising. in addition, intellectual property is involved with it. The process comes to determining of relative business performance.
Understanding the assets of a business is worth and determines the value of the organization, which is a pre-requisite for making intelligent decision. Valuing a particular business is one of the complicated exercises in business operations. It is an exercise, which takes into the consideration for various attributes (Levén et al. 2014). The purpose of making valuation and date of the valuation along with selection of the specific and suitable methodology needs to apply in the process. On the other hand, cash flows of the particular business and economic circumstances, as well as prospects of the industry act as key operators in the business. The ownership considerations for capital structure of business as well as the experience of the value of the business need to be considered. Thus, the details of exercise as well as the uncertainty or drawbacks related to the ultimate assessment can be varied depending on the specific attributes.
The portfolio management process is one of the major procedures through which an investor aid in meeting the investment goals. The procedure of portfolio management process can be described as followed.
Creating Policy Statement – It is needed to develop a policy statement that contains goals as well as constraints of investors as it is related to the investments.
Development of Investment Strategy – This process involves with creating a strategy, which combines goals as well as objectives of the investors with the current financial market along with the economic conditions.
Implementing the Plan – This step of life cycle deals with implementation of business strategy and investing in a portfolio. It encounters goals along with constraint needs of the investors.
Monitoring and Updating the Plan – Market and investors require changes according to time. Hence, it is crucial to monitor the changes as it occurs as well as update the plan in order to adjust with the changes. The final report from the National Commission on the BP Deepwater Oil Spill as well as offshore drilling provide complete plan for the lifecycle process.
Organizational maturity is one of the vital aspects for a business organization. Hence, comprehension of the present level of maturity of the organization is something that each organization needs to be concerned (Ajjan et al. 2016). Without having adequate levels of the maturity, the processes as well as functions and the decisions are not performed robustly. Thus, maturity of the Organization is a measure of readiness and capability of an organization that can expressed through people, procedures along with data and technologies.
When maturity of an organization is measured against a standardized framework as well as scale, it makes normalized activity in the common language. In addition, it forms a specific baseline in order to measure enhancement of the organization. For an example, The VMware online Financial Maturity Assessment is one of the IT Finance focused tool that is used in order to determine the recent level of maturity of the organization. Moreover, it has purposes in the desired level of maturity, which is based on the future needs. A detailed evaluation of taking several hours for completion of tasks is needed to be administered by external consultant.
This Financial Maturity Assessment has a standardized view on the level of presenting of readiness as well as capability of the organization related to people and processes. Movement across the spectrum maturity in an organization is staged and has meaning lower level procedures. It is required to place before the higher levels, which can be attained (Groves, et al. 2016). On the other hand, within each maturity level, the activities or procedures need to be completed before moving to the next level. In addition, each of the level provides an overview of expected characteristics that has experience at provided level. The model gives a theoretical continuum; process maturity need to be developed across that and incrementally from one level to next level.
From the above discussion it can be concluded that program and portfolio management is one of crucial factors of a successful organization. Hence, it is required to consider all the steps and procedures required for developing the portfolio. On the other hand, it is important to consider structure, form and culture of the organization and identify the business value. In addition, measuring organizational maturity will give ample scopes and taking decisions robustly.
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