Lec 9

Technology Management
Portfolio Management
Portfolio Management
• Portfolio management is the art and science of making decision about

investment mix and policy, marching investments to objectives, assets
allocation for individuals and institutions, and balancing risk against
performance.
• Portfolio management is all about determining strengths, weaknesses,
opportunities and threats in the choice of debt vs. equity, domestic vs
international, growth vs safety, and many other trade-offs encountered in
the attempt to maximize return at a appetite for risk.
What is a Portfolio ?
• A portfolio is a collection of investment tools such as stocks, shares, mutual

funds, bonds, cash and so on depending on the investor’s income, budget and
convenient time frame.
Following are two types of portfolio:

a. Market portfolio
b. Zero investment portfolio
What is a Portfolio Management?
• The art of selecting the right investment policy for the individuals in terms
of minimum risk and maximize the return is called as portfolio
management. In simple words, it refers to managing an individual’s
investment in the form of bonds, share, cash, mutual funds etc so that
investor earns the maximum profits within the stipulated time frame. In
other words it is reffered to managing money of an individual under the
expert guidance of portfolio managers.
Who is a Portfolio Manager?
• An individual who understand the client’s financial needs and assigns a suitable
investment plan as per his income and risk taking abilities is called a portfolio
manager. A portfolio manager is one who invests on behalf of the client.
• A portfolio manager counsels the clients and advises him the best possible
investment plan which would gurantee maximum returns to the individuals.
• A portfolio manager must understand the client’s financial goals and objectives
and offer a tailor made investment solutions to him. No two clients can have the
same financials needs.
Key Responsibilities of a Technology Portfolio
Manager
As a technology portfolio manager you will be responsible helping manage budget, risks and
constraints of a portfolio of assigned projects and programs. Following would be key responsibilities:
• Manage and report on complete portfolio of technology projects across multiple lines of business.
• Interacts with business unit leadership to ensure business objectives are met initiatives are
prioritized appropriately.
• Partner with business and technology terms to report on portfolio and project health.
• Responsible for managing pipeline of small to large project requests and assigning proper resource.
Key Responsibilities of a Technology Portfolio
Manager
• Prepares through and articulate executive summaries for senior leadership so that
subsequent questions are not required.
• Participate and lead project checkpoints to ensure proper adherence to technology
standards and procedures.
• Tracks projects expenses with assigned project manager and ensure adherence to
approved budget (as defined in approved business case).
• Collaborate with program/project managers to define time frames, funding
procedures, staffing requirements and assignments of resources.
Making a Technology Portfolio of an
Organization
• The ultimate goal of a portfolio manager is to maximize the capabilities of the organization as a whole. A portfolio will
help to show the area of interest relevant to a common industry specialty or domain. It can cover following areas.
• Applications: The focus of the application portfolio includes:

• What applications we currently have
• What applications are needed now and in the future
• Application ‘health’
• How individual applications are architected
• Together with the order Enterprise Architecture portfolio – how applications fit together within the broader
environment
Organization
• Business
It will focus on structuring and understanding business, information and technology patterns and show how
they work together to achieve strategic and tactical goals.it will address the following key areas:
• Level of customer satisfaction,

• Complete in the market,
• Dealing with suppliers,
• Sustain operates, and
• Care for employees
Organization
• Information:
It will provide an enterprise view of the form and condition of the enterprise’s information and data
assets. Predominately the focus is on digitized information and data assets however physical forms are
not excluded. At the area of concern could be:
• The ease at which technology enables data and information to be created, accessed and transferred;
• Emerging disruptive technologies;
• Changing nature of user expectations, behaviors and mobility; and
• The balance between protection and availability
Organization
• Infrastructure: it is responsible for understanding the form and condition of the enterprise
technology infrastructure. In this context, infrastructure can be defined as:
• The composite hardware, software, network resources and services required for the
existence, operation and management of an enterprise IT environment.
• A combined set of hardware, software, networks, facilities, etc. (including all of the important
technology), in order to develop, test deliver, monitor, control or support IT services.
• What technologies we currently have
• What technologies are needed now and in the future.
Need for Portfolio Management
• Portfolio management presents the best investment plan to the individuals

as per their income, budget, age ability to undertake risks. It minimizes the
risks involved in investing and also increases the change of making profits.
• Portfolio managers understand the client’s financial needs and suggest the
best and unique investment policy for them with minimum risks involved.
Portfolio management enables the portfolio managers to provide
customized investment solutions to clients as per their needs and
requirements.
Types of Portfolio Management
• Active Portfolio Management: As the name suggests, in an active portfolio management service, the
portfolio managers are actively involved in buying and selling of securities to ensure maximum profits
to individuals.
• Passive Portfolio Management: in the passive portfolio management, the portfolio manager deals
with a fixed portfolio designed to match the current market scenario.
• Discretionary Portfolio Management Services: in discretionary portfolio management services, on
individual authorizes a portfolio manager to take care of his financial needs on his behalf.
• Non- Discretionary Portfolio Management Services: in non discretionary portfolio management
services, the portfolio manager can merely advise the client what is good and bad for him but the client
reserves full right to take his own decisions.
Managing Technology Portfolio
• Create an inventory of the technology portfolio:

The first challenge is to get a list of all of the different technologies you have in use. Some of the attributes you may want to
capture include:
• Name and Vendor

• Version or model
• Component Type- operating system, DBMS, development tool, etc. application it supports
• Numbers of users Supported
• Amount spend per year (labor + licensing + upgrades)
• Sourcing – internet, hosted, cloud, etc
• Map technologies into their stages:
The next step is to figure out where each technologies sits in its lifecycle. There is no
single, hard and-fast classification scheme but the technology lifecycle typically is
segmented in to six phases, such as the following:
• In the labs
• Emerging from the labs (early adopters)
• Leading Edge
• State of the Market
• Last Generations
• End of Life
• Analyze the portfolio and act:

Once you have all of the data pulled together, you need to take some time to
digest it a mull over possible changes that you need to work into next year’s
plan or may be something sooner. It might be useful to map your data on to a
bell curve. In this example , the size of the circle represents relative cost.
• Create a process to review and refresh the technology portfolio: so that all
of this effort is not a “one and done,” you should embed a periodic review
into your core planning architecture and governance processes.

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Technology Management

• Portfolio management is the art and science of making decision about

• A portfolio is a collection of investment tools such as stocks, shares, mutual

Following are two types of portfolio:

• Applications: The focus of the application portfolio includes:

• Level of customer satisfaction,

• Portfolio management presents the best investment plan to the individuals

• Create an inventory of the technology portfolio:

• Name and Vendor

• Analyze the portfolio and act:

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