SpringerLink
Log in

Architecture-Based IT Portfolio Valuation

  • Conference paper
Practice-Driven Research on Enterprise Transformation (PRET 2010)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 69))

Abstract

This paper describes the ingredients of an integrated IT valuation method that uses architectural models as its backbone. First, it investigates the link between the organization’s mission and vision and high-level strategy, such as its value center approach and operating model. These strategic choices determine the aspects that need to be taken into account when assessing the value of the IT portfolio. The resulting business requirements can be modeled in conjunction with the enterprise architecture of the organization. This provides concrete insights in the contribution of these elements to the business. KPIs are then associated with business requirements on the one hand and architecture elements on the other hand, and measurement of these KPIs determines the operational performance of the organization and its IT. The paper uses an implementation of Bedell’s method as an illustration of this approach.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free ship** worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

References

  1. Schuurman, P., Berghout, E.W., Powell, P.: Calculating the Importance of Information Systems: The Method of Bedell Revisited, CITER WP/010/PSEBPP, University of Groningen, Sprouts Working Papers on Information Systems (June 2008), http://sprouts.aisnet.org/8-37

  2. Jeffery, M., Leliveld, I.: Best practices in IT portfolio management. MIT Sloan Management Review 45 (2004)

    Google Scholar 

  3. Archer, N.P., Ghasemzadeh, F.: An integrated framework for project portfolio selection. In: Dye, L.D., Pennypacker, J.S. (eds.) Project Portfolio Management Project Portfolio Management, Center for Business Practices, West Chester, pp. 117–133 (1999)

    Google Scholar 

  4. ITGI: Enterprise Value: Governance of IT investments: the Val IT Framework 2.0. IT Governance Institute, Rolling Meadows, Illinois (2008), http://www.itgi.org/valit/

  5. Venkatraman, N.: Beyond Outsourcing: Managing IT Resources as a Value Center. MIT Sloan Management Review 38(3), 51–64 (1997)

    Google Scholar 

  6. Venkatraman, N.: IT Agenda 2000: Not fixing technical bugs but creating business value. European Management Journal 16(5), 573–585 (1998)

    Article  Google Scholar 

  7. Ross, J.W., Weill, P., Robertson, D.C.: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution. Harvard Business School Press, Boston (2006)

    Google Scholar 

  8. The Open Group: TOGAFTM Version 9, The Open Group, Reading, UK (2009), http://www.opengroup.org/togaf

  9. Lankhorst, M.M., et al.: Enterprise Architecture at Work – Modelling, Communication and Analysis, 2nd edn. Springer, Heidelberg (2009)

    Book  Google Scholar 

  10. Iacob, M.E., Jonkers, H., Lankhorst, M., Proper, E.: ArchiMate 1.0 Specification. Van Haren Publishing, Zaltbommel (2009)

    Google Scholar 

  11. Schekkerman, J.: The Economic Benefits of Enterprise Architecture, Trafford (2005)

    Google Scholar 

  12. Slot, R., Dedene, G., Maes, R.: Business Value of Solution Architecture. In: Proper, E., Harmsen, L., Dietz, J.L.G. (eds.) Proc. First NAF Academy Working Conference on Practice-Driven Research on Enterprise Transformation, PRET 2009, held at CAiSE 2009, Amsterdam, The Netherlands, June 11. LNBIP, vol. 28, pp. 84–108 (2009)

    Google Scholar 

  13. Ross, J.W., Weill, P., Robertson, D.C.: Enterprise Architecture As Strategy: Creating a Foundation for Business Execution. Harvard Business School Press, Boston (2006)

    Google Scholar 

  14. Quartel, D.A.C., Engelsman, W., Jonkers, H., van Sinderen, M.J.: A goal-oriented requirements modeling language for enterprise architecture. In: Proceedings of the 13th IEEE International EDOC Enterprise Computing Conference, Auckland, New-Zealand, pp. 3–13 (September 2009)

    Google Scholar 

  15. Engelsman, W., Jonkers, H., Quartel, D.: Supporting requirements management in TOGAF and ArchiMate, White Paper, The Open Group (February 2010)

    Google Scholar 

  16. Pols, R., van der Backer, Y.: Application Services Library - A Management Guide. ASL Foundation/Van Haren Publishing (2006)

    Google Scholar 

  17. ISO/IEC: Information technology – Software product evaluation – Quality characteristics and guidelines for their use, International Standard ISO/IEC 9126, International Organization for Standardization, International Electrotechnical Commission, Geneva (1991)

    Google Scholar 

  18. Iacob, M.-E., Jonkers, H.: Quantitative Analysis of Service-Oriented Architectures. International Journal of Enterprise Information Systems 3(1), 42–60 (2007)

    Article  Google Scholar 

  19. ISO: Risk management – Principles and guidelines, International Standard ISO 31000:2009, International Organization for Standardization, Geneva (2009)

    Google Scholar 

  20. ISO/IEC: Risk management – Risk assessment techniques, International Standard ISO/IEC 31010:2009, International Organization for Standardization, International Electrotechnical Commission, Geneva (2009)

    Google Scholar 

  21. Capgemini: Global CIO Report – Harnessing Information Value: Could you be a digital winner? (December 2009), http://www.capgemini.com/insights-and-resources/by-publication/global-cio-report/

  22. Wierenga, H.: Architectural Information Economics. Via Nova Architectura, August 28 (2009), http://www.via-nova-architectura.org/artikelen/tijdschrift/architectural-information-economics.html

  23. Kazman, R., Barbacci, M., Klein, M., Carriere, S.J., Woods, S.G.: Experience with Performing Architecture Tradeoff Analysis. In: Proceedings of the 21st International Conference on Software Engineering, pp. 54–63 (1999)

    Google Scholar 

  24. Kazman, R., Asundi, J., Klein, M.: Making Architecture Design Decisions: An Economic Approach. Technical report. CMU/SEI-2002-TR-035. Carnegie Mellon University, USA (2002)

    Google Scholar 

  25. ISACA: CoBiT 4.1. IT Governance Institute, Rolling Meadows, Illinois (2007), http://www.isaca.org/cobit.htm

  26. Nord, R.L., et al.: Integrating the Architecture Tradeoff Analysis Method (ATAM) with the Cost Benefit Analysis Method (CBAM). Technical report CMU/SEI-2003-TN-038. Carnegie Mellon University, USA (2003)

    Google Scholar 

  27. Johnson, P., Lagerström, R., Närman, P., Simonsson, M.: Enterprise Architecture Analysis with Extended Influence Diagrams. Information System Frontiers 9(2-3), 163–180 (2007)

    Article  Google Scholar 

  28. Lagerström, R., Franke, U., Johnson, P., Ullberg, J.: A Method for Creating Enterprise Architecture Metamodels – Applied to Systems Modifiability Analysis. International Journal of Computer Science & Applications 6(5), 89–120 (2009)

    Google Scholar 

  29. CMMI Product Team: CMMI® for Development, Version 1.2, CMU/SEI-2006-TR-008. Software Engineering Institute, Carnegie Mellon University (August 2006), http://www.sei.cmu.edu/reports/06tr008.pdf

Download references

Author information

Authors and Affiliations

  1. Novay, P.O. Box 589, 7500, AN, Enschede, The Netherlands

    Marc M. Lankhorst, Dick A. C. Quartel & Maarten W. A. Steen

Authors
  1. Marc M. Lankhorst
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Dick A. C. Quartel
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Maarten W. A. Steen
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Maastricht, Minderbroedersberg 4-6, 6211, Maastricht, LK, The Netherlands

    Frank Harmsen

  2. Public Research Centre Henri Tudor, 29, avenue John F. Kennedy,, 1855, Luxembourg-Kirchberg, Luxembourg

    Erik Proper

  3. Atos Origin, Papendorpseweg 93, 3528, Utrecht, BJ, The Netherlands

    Frank Schalkwijk

  4. Faculty of Technology, Policy and Management, Section of Systems Engineering, Delft University of Technology, P.O. Box 5015, 2600, Delft, GA, The Netherlands

    Joseph Barjis

  5. Faculty of Technology, Policy and Management, Section of Information and Communication Technology, Delft University of Technology, P.O. Box 5015, 2600, Delft, GA, The Netherlands

    Sietse Overbeek

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Lankhorst, M.M., Quartel, D.A.C., Steen, M.W.A. (2010). Architecture-Based IT Portfolio Valuation. In: Harmsen, F., Proper, E., Schalkwijk, F., Barjis, J., Overbeek, S. (eds) Practice-Driven Research on Enterprise Transformation. PRET 2010. Lecture Notes in Business Information Processing, vol 69. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-16770-6_4

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-16770-6_4

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-16769-0

  • Online ISBN: 978-3-642-16770-6

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation