INNOVATION BLOG

By 2025, a staggering 70% of digital investments will fail to generate the expected business outcome due to the lack of Strategic Portfolio Management (SPM) approach. With an estimated 3.4 trillion digital investment by 2026 (IDC Spending Guide), this is a cause for serious concern. An effective SPM approach is necessary to ensure successful execution of digital transformation strategies and to avoid the predicted failure.

Gartner predicts that by 2024, 80% of digital businesses will have adopted SPM approach and execution technologies, as well as new frameworks and standards to ensure optimal business outcome. To succeed, organizations must first assess their current Project Portfolio Management maturity and determine if it can be improved. Furthermore, they must connect their digital strategy to the portfolio management process, and ensure the portfolio has the necessary flexibility to align with changes in the strategic vision. Finally, if not established, organizations should establish an Enterprise Portfolio Management Office (EPMO) that oversees a well defined SPM model.

Without proper alignment of strategy and implementation, 70% of digital investments will fail to deliver..

Successful organizations have already taken the steps necessary to embrace SPM. By following the same steps, digital and portfolio leaders can ensure that their organization’s digital investments are not wasted. Strategic Portfolio Management (SPM) can help guarantee enterprise-wide strategy-to-execution alignment and adaptation, and ultimately, successful implementation of the digital transformation strategy.

Data is based on Garner Magic Quadrant for Strategic Portfolio Management, published April 18, 2022.