ITPEC FE Subject A April 2025 Question 46

Which of the following is a technique that is used to perform the optimal resource allocation for a computerization investment in each category classified on the basis of the similarities in risks and investment value?

Explanation

IT portfolio — IT investments are grouped by risk and value, and resources are allocated across the groups.

IT portfolio management applies the idea of a financial portfolio to computerization investment. Projects and systems are classified into categories with similar risk and expected value (for example, infrastructure, strategic and operational-efficiency investments), and the budget and staff are allocated across the categories so the whole portfolio gives the best balance of return and risk.

Answer (d)

Why not others:

  • •(a) 3C analysis — a marketing environment analysis of Customer, Competitor and Company; it does not allocate investment
  • •(b) Benchmarking — compares one's own processes or performance with the best in the industry to find improvements
  • •(c) Enterprise architecture — models the organization's business, data, applications and technology to optimize the whole structure, not to allocate funds by risk category

Key rule: Classifying investments by risk and return and balancing the allocation across them is the portfolio idea, whether for business units (PPM) or for IT (IT portfolio).

System Strategy · AI-written, may contain errors

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