Abstract

Digital transformation and the resulting volatile and unpredictable business environments challenge traditional enterprises to continuously fulfill and surpass customers’ expectations. They need to become agile in its organization by proactively sensing the unpredictable change and responding accordingly with speed and dexterity. While many organizations are quite advanced in realizing adaptivity at the operational level, strategic agility in general and in portfolio management in particular as linking op-erations and strategy for satisfying the customer needs is in its nascence. To identify the baseline for portfolio management for achieving agility, we derive four design goals for an effective agile portfolio management system, six design principles on how to achieve these goals and show an exemplary setup with design features. Our results are based on a research study with empirical insights from six com-panies and theoretical input from thirteen existing case studies and eight frameworks for scaling agility to the portfolio level. By deriving design principles for an agile portfolio management system, our work closes a gap in existing research, which focuses on principles for adaptive IT portfolio management processes instead of proactive enterprise systems, insights on individual portfolio practices or non-generalizable blueprints for an agile organizational setup without showing alternative approaches.

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