ITPEC FE Morning April 2018 Question 61

Source exam: ITPEC FE Morning April 2018Topic: Management Strategy

ITPEC FE Morning April 2018 — Question 61 of 80

IT Portfolio Management — optimizing IT investment allocation by risk and value

The question asks about a technique for optimum resource allocation of computerization investments, classified by risk and investment value — this is the definition of IT portfolio management.

Just like a financial portfolio, IT portfolio management groups IT investments into categories, evaluates each category's risk and expected value, and allocates resources to achieve the best balance.

Why not others:
- a) 3C analysis — a marketing framework (Company, Customer, Competitor) for competitive strategy, not investment allocation

- b) Benchmarking — comparing processes/performance against industry best practices, not about allocating investment resources

- c) Enterprise architecture — defines the overall structure and integration of an organization's IT systems, not focused on risk-based investment optimization

Key rule: "Resource allocation" + "investment categories" + "risks and value" → IT portfolio management.

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