Research On Business-Driven Enterprise IT Service Portfolio Selection Strategy

With the progress of enterprise informatization, the impact of IT is deepening on the society, and the dependence of business and IT services is growing. More and more business decision-makers need to begin to pay attention to IT, and try to close it, understand it and use it, so as to put forward an appropriate IT services portfolio in order to achieve the expected results of the enterprise with the limited budget.In the process of enterprise informatization, the enterprises need to invest heavily in it, but the utilization rate of the existing IT resources is very low. Within the enterprise, the managers proposed the demand of the return on the investment for the IT. Both internal IT departments and external IT providers are busy to respond all day, but still find it difficult to meet the customer requirement. However, the business agencies always require the IT department to provide more IT services which should have the higher service quality and level and hope to reduce the management complexity, IT costs, risks and investment to some extent.How to balance the two requirements above and propose a reasonable IT service portfolio? Currently, the IT service portfolio management is in a fledgling stage. There are less strategy for the IT service portfolio selection, and which can’t obtain an intuitive quantitative result, leading to poor operability. Thus the IT service providers mostly define it according to the experience.Based on the above problem, this paper will give some advices of the IT service portfolio selection to avoid the bias caused by the subjective experience. As the most basic requirement of IT service is to create value for customers, the ideas of BDIM (Business Driven IT Management) are use to analyze the IT service portfolio on the value the customers receive and the financial impact. The quantitative analysis result of the optional service portfolios will be obtained, and the uncertainty existing in the calculation is treated by the interval arithmetic and utility theory. The numerical result helps the business decision-makers to pick out the service portfolio which can create the most value for the customers with the certain costs expediently. In addition to create the most value customers receive, the IT service portfolio needs to be consistent with the enterprise strategy. Then the ideas of BDIM are use to analyze if the IT service portfolio can meet multiple objectives which are analyzed and quantized. Based on the quantified objectives, the optional service portfolios are analyzed, and the degree of completion of each objective is obtained to provide a quantitative reference for business decision-makers, making it easier to pick out a service portfolio combining with the strategic better. Finally, these methods are applied to the different simulation scenarios, and the results of the experiments verify the validity of these methods. According to their actual needs, decision-makers can choose the different quantitative methods to analyze the optional IT service portfolios. Thus, the study can guide the decision-makers in the definition of the IT service portfolio with the stability, flexibility and convenience.