Portfolios are projects, programs and operations that are managed together to achieve strategic business goals.
Portfolio management(PFM) comprises the corporate strategic prioritization ofIT investments. This includes the identification and prioritization of projects, taking into account the cost-benefit ratio for the company. The decision regarding IT investments is made on the basis of the strategic and business benefits that the company derives from the IT investment. The basis for such an investment decision should be the evaluation of the potential increases in sales and earnings.