ITPEC FE Morning April 2021 Question 64

Source exam: ITPEC FE Morning April 2021Topic: System Strategy

ITPEC FE Morning April 2021 — Question 64 of 80

IT portfolio is a technique that manages IT investments similarly to a financial portfolio. Computerization investments are classified into categories based on the similarities of their risks and investment value, and resources are then allocated optimally across those categories.

Why not others:
- (a) 3C analysis — a marketing strategy framework analyzing Company, Customer, and Competitor — not related to IT investment allocation.

- (b) Benchmarking — comparing one's processes or performance metrics against industry best practices — not about resource allocation by risk/value.

- (c) Enterprise architecture — a blueprint describing the overall structure and relationships of an organization's IT systems — not about optimizing investment allocation.

Key rule: When a question mentions classifying investments by risk and value for optimal resource allocation, think IT portfolio — it applies financial portfolio logic to IT spending.

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