An integrated project portfolio model for selecting information technology projects

Abstract

Sasol is one of the biggest South African petrochemical companies that have recently gone through a major transformation with regards to its management of information technology. This study is intended to assist Sasol' s Information managers to optimise the company investment in information technology through the management of its information technology portfolio. This study focuses on the development of a project portfolio selection model through the evaluation of individual projects and project portfolios, by: ■ aligning the project portfolio with the organisation's strategic intent and objectives to ensure that the information technologies and systems support it; ■ determining the potential benefit to be derived from the projects in terms of the operational, tactical, and strategic dimensions; ■ assessing the risk profile of a particular information technology project and developing risk mitigation steps; ■ determining how a particular information technology project or system fits in with the organisation's existing information systems & infrastructure, thus ensuring re-use wherever possible; ■ establishing how a particular information system fits in with and supports the organisation's architecture models, thereby helping the organisation establish coexistence between all the different information systems; and ■ evaluating and ranking individual projects according to potential value, risks, and any resource constraints that may exist. Successful projects are then incorporated into the organisation's information technology portfolio. The study concludes with an integrated project portfolio selection model that can be incorporated into the Sasol information management structures.