Information System Project Selection

Projects are approved, declined, or delayed based on the value added compared to the risks as broken down in Feasibility Analysis.

Project Portfolio Management

Goals of project portfolio management:

• Maximize the cost/benefit ratio
• Maintain an optimal mix of projects based on:
  • Risk
  • Size, cost, and length of time to complete
  • Purpose, scope, and business value

Limited resources require trade-offs. Once selected, projects move into the project management process.

How Not to Select a Project

Avoid selecting projects based on:

• First in, first out
• Political clout of the project inventor
• The squeaky wheel getting the grease
• Any method that lacks a deliberate course of action analysis

A recent analysis found that 2% to 15% of projects undertaken by IT departments are not strategic to the business.

Portfolio Matrix

Project can exist in 4 quadrants (categories):

• High Value/Low Risk: Projects in this category are usually prioritized as they offer high returns with minimal risk.
• High Value/High Risk: These projects offer significant benefits but come with substantial risks. They may require careful consideration and risk management strategies.
• Low Value/Low Risk: These projects are less critical but can be pursued if resources are available.
• Low Value/High Risk: Generally, these projects are avoided or deprioritized because they offer low benefits and come with high risks.