Compilation of MIT CISR research on IT portfolios, IT savvy and firm performance : (2000 - 2006)

During the period of 2000 to 2006 MIT CISR has conducted several research projects on IT Portfolios, IT Savvy and firm performance. Just as investors have portfolios of financial investments to address their multiple investment objectives, firms have portfolios of information technology (IT) investments. Four different management objectives guide firms' investments in IT resulting in four different asset classes. Each of these asset classes has a different objective and a unique risk-return profile. Just like any other investment portfolio, the IT Portfolio must be balanced to achieve alignment with the business strategy and the desired combination of short- and long-term pay off. This compilation describes the MIT CISR approach to the management of IT investment as a portfolio and presents benchmarks of IT Portfolios from over 600 firms as well as the average financial returns from each IT asset class. Firms with high IT Savvy have a set of six reinforcing IT practices and competencies that help achieve a higher measurable bottom line return per IT dollar invested