A Method of IT Investment Portfolio Optimization in the Government Sector Integrated with IT Governance

To develop a new analysis method which can improve IT investment benefit in government sector, this study proposes a management framework based on portfolio approach integrated with IT governance. An IT investment projects portfolio is built in terms of risk, technology, benefit, capital allocation. Then, this study develops a nonlinear 0-1 multi-objective programming to optimize the portfolio. Finally, a decision right allocating matrix that juxtaposes the four groups of stakeholders in government IT investment decision process against the three stages creates a valuable tool for analyzing where IT decisions are made.