Establishing an Agile Portfolio to Align IT Investments with Business Needs

Using contingency theory, we argue that there is not a uniform approach for companies to govern information technology (IT) investments. Rather, the level of governance over IT investments is contingent upon the organization’s goals for its IT investments. We find that Australian organizations with both operation- and market-focused IT investment goals (i.e. dual-focused IT goals) demonstrate higher IT investment governance (ITIG) levels than those with less focused IT goals. We also document that dual-IT-focused firms that do not implement high levels of ITIG underperform. Our study informs business executives, boards of directors, and other practitioners interested in governance implementations over IT investments. JEL Classification: M1

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Organization/business, management, people and complexity – an approach to their integration

Human Systems Management ◽

10.3233/hsm-2004-23205 ◽

2004 ◽

Vol 23 (2) ◽

pp. 101-110

Author(s):

Rexford H. Draman

Keyword(s):

Quantum Mechanics ◽

Research And Development ◽

Bifurcation Point ◽

Business Management ◽

Living System ◽

System Framework ◽

Business System ◽

Business Needs ◽

Tools And Techniques ◽

Number Of Individuals

Like a growing number of individuals, the author believes that business is facing the same bifurcation point physics was facing before the development of quantum mechanics – trying to fit a Newtonian explanation onto a non-Newtonian problem. Given that perspective business needs a system-based model not more research and development on its Newtonian practices and beliefs. The focus of this paper focuses is on the development of such a framework. This paper draws on science to identify the necessary requirements for a living system and converts that into a three-entity framework. Through the conversion of this living-system framework the necessary requirements for a living business system are identified. With that, an assortment of currently available system-based business tools and techniques that fulfill most of the requirements of a living business system, are introduced. An approach to implementing these tools and techniques as well as remaining open for the incorporation of other systems-based practices is presented.

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