Project portfolio valuation with Enterprise Architecture

Nowadays, business is forced to engage in rapidly changing market dynamics. Business transformation is inevitable, and thus a number of projects are implemented to address this need. Priority should be given for every project by considering time, cost, and quality. However, the most common approach for project portfolio valuation is done by leveraging manager’s belief and often limited to prior experience and knowledge. Therefore, the research aims at finding an approach to improve the decision making in project portfolio valuation. Enterprise Architecture (EA) is a comprehensive concept that illustrates the business process, application and infrastructure that could be used throughout the entire process, starting from the design, analysis and transformation phase of the organization. In this study, we explore the potential of using the information from EA for project portfolio valuation. EA-based Investment Portfolio method is introduced and designed based on Investment Portfolio method combine with the information that is obtained from the architecture. Three domains that are subjected to assessment are; business, technology, and financial domain. In conclusion, EA-based Investment Portfolio Method is able to facilitate the project portfolio valuation with a comprehensive justification. It also reveals the importance of collaboration between EA and PPM in the practice.