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APPLICATION PORTFOLIO MANAGEMENT IN THE CONTEXT OF INFORMATION SYSTEMS PLANNING Paula Serdeira Azevedo (1) Carlos Aze

APPLICATION PORTFOLIO MANAGEMENT IN THE CONTEXT OF INFORMATION SYSTEMS PLANNING Paula Serdeira Azevedo (1) Carlos Azevedo (2) Mário Romão (3) 1 Associate Professor, University of Algarve, Information Systems and Technology Department, ESGHT, Faro – Algarve, Portugal pscorreia@ualg.pt

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APPLICATION PORTFOLIO MANAGEMENT IN THE CONTEXT OF INFORMATION SYSTEMS PLANNING Paula Serdeira Azevedo (1) Carlos Aze

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  1. APPLICATION PORTFOLIO MANAGEMENT IN THE CONTEXT OF INFORMATION SYSTEMS PLANNING Paula Serdeira Azevedo (1) Carlos Azevedo (2) Mário Romão (3) 1 Associate Professor, University of Algarve, Information Systems and Technology Department, ESGHT, Faro – Algarve, Portugal pscorreia@ualg.pt 2 Visiting Professor, University of Algarve, ESGHT, Faro – Algarve, Portugal cmazevedo@ualg.pt 3 Assistant Professor, ISCTE-IUL, University Institute of Lisbon, Science and Information Technology Department, Lisbon, Portugal mario.romao@iscte.pt

  2. AGENDA 1. Introduction 2. The role of Information Systems Planning 3. The Application Portfolio Matrix 4. Case Study: results 5. Conclusions TMS Algarve- 14 November 2013

  3. 1. INTRODUCTION • purpose of this paper • Verify the use of the application portfolio matrix as a relevant tool to information systems planning. • Focus on the origin of the matrix in the context of information systems architectures, reporting its development through the contributions of several authors. • Present results of an investigation performed on a corporate group of companies of this sector and focused on the advantages and limitations of ERP (Enterprise Resource Planning) systems. • Emphasize the transversal role of this tool for several businesses, including tourism. • question covered by this research • . Management of IS applications: The need for the organization to align it with business strategy TMS Algarve- 14 November 2013

  4. 2. The role of Information Systems Planning • IS/IT strategic planning defines information requirements and how they are applicable to business, based on: • Strategic analysis of the organization and its environment (business strategy, value chain, process analysis, external factors….) • Major critical success factors (CSF) • CSF’s identified for this industry • Relationship with external operators through new distribution channels • Diversifying service offer, services like entertainment, health centres and golf courses as a differentiation factor towards competitors • Process performance improvement • QualityofServiceto thecustomer • Competitiveadvantagesassociated with the use of IS/IT TMS Algarve- 14 November 2013

  5. 3. The Application Portfolio Matrix + Potential contribution of applications to future business goals Degree of dependence of the business on IS/IT applications in achieving business performance + - Source: Ward et al. TMS Algarve- 14 November 2013

  6. Origin: The Boston Matrix (Boston ConsultingGroup) Source: Ward et al. TMS Algarve- 14 November 2013

  7. Application Portfolio Management for Investments • The IT Portfolio Management approach has a similar basis to managing your personal investment portfolio.  • Investors are advised to ensure diversity to help protect ones wealth from failure in any one industry or risk groups.  • In the same way the Portfolio Management process will assess all of the proposed IT projects and seek to ensure that there is a balance of risk – i.e. not all projects are high risk; that skills can be spread across the portfolio and that change is manageable across the business units. • Funding of investments through the portfolio approach will evaluate the business cases, and help ensure that the most beneficial IT projects receive funding. TMS Algarve- 14 November 2013

  8. 4. Case Study: results CurrentApplication Portfolio TMS Algarve- 14 November 2013

  9. Future Application Portfolio TMS Algarve- 14 November 2013

  10. 5. Conclusions • Using application portfolio matrix enabled mapping the applications of the studied group of companies, according to its strategic importance to the business. This was possible because tools like organization value chain, critical success factors and matrixes relating processes to applications were applied. • Portfolio analysis also allowed putting in perspective its evolution, mapping the future portfolio, according to business strategies and competitive advantages identified in the study • The investigation allowed to relate the concept, the objectives and the relevance of IS strategic planning, namely with the following matters: • a) Alignment of IS/IT investments with organizational goals; • b) Use of IS/IT to obtain competitive advantages; • c) Development of policies and architectures for IS; • d) Enabling appropriate human resources management as well as other assets in the area of IS/IT, • e) To perspective the future application portfolio with information systems that satisfies demanding dynamics inherent to the evolution of the hospitality industry. TMS Algarve- 14 November 2013

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