A resource allocation matrix approach to IT management

This paper draws on an interview-based study of four information intensive companies in the financial industry. The research uses a portfolio approach to the management of IT, i.e. the IT resources of a company are viewed as a portfolio. Building on different portfolio approaches and prior work on technology shifts, a resource allocation matrix is developed. The Resource Allocation Matrix frames the time perspective and proactivity of efforts. The former is operationalized by short-term and long-term perspectives, while the latter uses meeting obligations and pursuing opportunities. Resources can be allocated towards: Firefighting, Agile Action, Platform Construction and Business Transformation. The Matrix can be used both descriptively, i.e. to illustrate how IT resources are allocated within the company, and prescriptively, i.e. to actively guide the allocation of resources between different concurrent projects. The trade-off between acquiring new technologies and abandoning old technologies is one example of what can be managed using the Matrix. © Springer Science + Business Media, Inc. 2006.