Information Technology Portfolio Management (IT PfM)

Tuesday November 28, 2006

What is it? IT PfM is an effort to optimize DOD investments in information technology by examining the entire enterprise to identify ways to leverage similar existing and planned IT assets to provide maximum effectiveness to warfighters for the least possible cost at a level of associated risk that is acceptable to the Nation. IT PfM requires the implementation of an iterative process of data collection, analyses, selection, and controls/feedback very similar to the process used by Wall Street portfolio managers to manage the mixture of holdings to achieve the maximum return on investment while limiting the level of risk.

What has the Army done? Since the program's beginning in July 2005, the Army has implemented a system called the Army Portfolio Management Solution (APMS) which facilitates the collection and performance of high level analyses of the information necessary to prioritize the thousands of IT investments within the Army portfolio. To better enable this effort, IT investments have been divided by the capabilities they deliver, into three mission areas: the Warfighter Mission Area (WMA), Business Mission Area (BMA), and Enterprise Information Environment Area (EIEMA) which are each led by three or four-star level flag officers or senior executives. Within the BMA, high-level enterprise architectures have been developed and much analyses and some selection has already been completed. Within the WMA and EIEMA, analyses have already begun in select, high value areas (such as Tactical Knowledge Management and Collaboration).

What efforts does the Army plan to continue in the future? The Army's IT PfM is currently focused on selecting the areas with greatest possible impact to the warfighter and potential savings from elimination of duplicative and redundant systems, and executing the intensive analysis required to fully optimize those areas. Additionally, the Army is working with OSD and the other Services to institutionalize the IT PfM process while simultaneously making it more effective and efficient by leveraging and integrating IT PfM with existing DoD processes.

Why is this important to the Army? The Army must adapt to overcome future threats and develop ways to win "the long war" against a continuously changing set of threats within the economic constraints defined by our national resources.

For more additional information on Information Technology Portfolio Management (IT PfM)

For more information on this and other topics see** Addendum J in the Army Posture Statement.**


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"There's no good solution to a divided Iraq. It's got to come together. It's got to stabilize. And, it's going to require Iraqi sacrifice and courage and responsibility along with that of the United States and our allies." -General John P. Abizaid said on November 26, 2006.

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