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Question: Discuss About The Portfolio Management Information Systems? Answer: Introduction This essay depicts the importance of proper tool management in a business organization that is necessary to implement a project in a business organization. By using proper tools and theories the organizations will be able to deliver the expected outcomes. Based on the type of the business processes different business organizations use various business managerial tools. The target of the essay is to elaborate and define the system thinking for making classification of different tools and techniques those are strictly relevant to system thinking. The general system management including organizational structure, form and culture of the business organization and business values are elaborated in this report. In addition to this, engineering risks, risk management approaches and portfolio alignment is also elaborate in this report. The maturity of a business organization is dependent on its culture and management structure. Apart from this, a process cycle of a portfolio management cycle is also elaborated in this report. Critical analysis General systems management In order to gain measurable revenue structure from the competitive market, many business organizations use the general system management approach. This approach is little different from the traditional system management. In order to organize the small businesses based on the traditional hierarchical structures general system theory is required to be used by the business organizations (Aldrich and Yang 2014). The general management structure follows top down approach where the top management is the boss who possesses the leading authority and the managers and the managers and other lower level employees are bound to follow the instruction of the higher authority. On the other hand, the general system theory also offers different beneficial ways to the owners for organizing the company. Based upon this theory from the early age of 1934, the business organizations are constructing (Verzuh 2015). The components of the business model include matrix of the subsystem, goals, project orienta tion, transformation and permanence. The matrix of the subsystems: Instead of the top down approach, both the bottom up approaches and vertical system approaches can be formed with the help of this theory. In the newly created structures every individual department will have an owner. Again interrelationships between the departments can be also be demonstrated in this process (Turner 2014). The new approach implies that, each of the different departments such as the sales, marketing, manufacturing and financial can act as the leading department in the business organization. However each of the department can again exist under the traditional hierarchy. It means that if any enterprise, use the general system theory, then every individual department will act their as a entity and the entities can merge up with other organizations whenever required. Goals: Under the general system theory, multiple goals can be implemented and even resolved by the business organizations. Each individual department of the enterprises develops their business goals and collectively serves the desired outcome for the consumers of the business organization (Pemsel and Wiewiora . 2013). However, in order to serve the desired outcomes the departments can make collaboration with other departments. Project orientation: By creating different projects all the individually operating departments could act effectively. After considering the information and resources it has been found that, the projects are the focal points for the business organizations. The project manager of the business organization is responsible to lead the business project by collecting input from different resources. Transformation: The general system theory gives required changes to the business organization for gaining effective system growth and feedback from the consumers. Based on the requirement of the consumers, proper change management is needed to be applied in the organizational processes (Schwalbe 2015). It will help the organizations, to serve effective and efficient power to make the desired changes in the business organizations. If the structure is not maintaining the hierarchical approaches then, the business process changes based upon the feedback generated by the rest of the consumers. Permanence: In order to gain effective business success, system permanence is required. Organizational structures, forms and culture The organizational structure and culture both are necessary to be maintained by the management authority of an enterprise to gain measurable success and revenues from the competitive marketplace. The organizational hierarchy stars from the senior management authority and after the middle management and junior management the group of staffs fall. The aim of the business organization is to meet the requirement of the consumers by providing either services or products. Based upon the business types the organizational structure takes different forms (Kerzner 2013). The structures are influences by different factors such as purpose, size and task complexity, external environment its culture and employee performance. The quality of products, organizational location and services helps the management authority to select the most suitable organizational structure. The selected organizational structure helps to govern the business organization towards success and even it also helps to show the most effective direction to the business organization. Moreover, the operations of the business organizations are also dependent upon the organizational culture and structure. It also helps to reduce the rate of internal conflicts and negative external affects. However, for large organizations the tall organizational structures are effective whereas; for the small organizations short organizational structures are effective (Lock 2014). Another structure is matrix structure which is used in project based organization. In this structure, a team is formed which is made up of HR, specialists and marketing management authority. Engineering risk, risk management Risk management is referred to as one of the most important factors that are strictly required to be considered for the organizational growth and revenue. It has been considered that, in the project initiation phase, the project manager should identify the potential risks that might affect the overall structure of the project and the organization also (Heagney 2016). In addition to this, the experts who are working for the projects are also focused on the risk management approaches. It has been found that, the function named as risk is divided into two different components such as probability and consequences. The engineering risk management approach includes five different components such as planning or the risks, identification of the risks, analysis of the risks, development of the risk management strategies and monitoring on the risk management process. Proper risk management approach is proactive rather reactive. It helps to reduce the rate of adverse event occurring. Planning for risk: In this phase, the project engineer looks after all the possible risks, that, might affect the entire enterprise in the way success. The risk management plan includes different methods those are used for the execution of the project risk plan. As a part of a larger project management plan, this phase must be included. In order to meet the requirements of the business plan the project engineers are required to plan for the perfect risk management by providing the necessary information to the project team members. Identification of risks: In this phase the project engineer should identify all the risks those might affect the business continuity. In most of the cases, the risks are associated to cost, schedule, technology, production, feasibility, support and management (Mir and Pinnington 2014). If the project financial manager fails to make the appropriate feasibility for the project then economical risk will occur than will affect the project entirely. Analysis: After identifying the risks the PM analyzes all the risks and then ranks them based upon their quality. It has been identified that these risks analysis is a systematic process, which is used to estimate the risk levels for the identified and approved risks (Lock 2014). Mainly, it includes the risk matrix creation that could quantify the probability and the consequences of the determined engineering project risks. It helps to make the conversion of the overall risks. Development of risk avoidance strategies: Based on the types of the risk the PM should develop different risk management strategies. These strategies help the business organization to deal with the risks efficiently. The four basic categories those could be placed into the risk management strategies are as follows: Acceptance: In this approach the PM do not wishes to make any further risk mitigation rather with the existing risk they wills to continue their business. Avoidance: The resources those are the reason behind the risk occurrence can be eliminated from the project by the PM to avoid the risks. Control: Risk control is referred to as risk mitigation. In this approach the risk are mitigated with relevant strategies (Elston, Chen and Weidinger 2016). Even any such risk is identified that could not be mitigated can be controlled to stop its further progress. Transfer: In this process in order to combat risk the PM transfers the risk to other party. Monitoring and control: In this process, the risks are required to be controlled properly monitoring the risk mitigation strategies (Choi and Majumdar 2014). The components of risk control include earned value, program metrics and technical performance measurements. Portfolio alignment Project portfolio alignment is referred to as one of the most rapidly increasing and popular management practice, which is adapted by some of the business organizations well used also. Most of the cases alignment is found to be as a missing component. The steps that are required to be maintained by the PM in project alignment include road mapping (Cedrola, Battaglia and Quaranta 2016). In this approach, the strategic roadmap rather user interface is defined and communicated. In order to reduce the work burden and to meet the requirement of the consumers the work load are divided among the project team members accordingly. Business value Business value is referred to as a tool that is strictly required for developing the business culture and structure as well. Every successful business organization has appropriate business values. In business valuation standard business values are used (Decker et al. 2014). It establishes standard measures of value those are used for determining the business worth. The business values might be determined by the fair market values, investment values and intrinsic values. The agile approach has changed the conversation regarding measuring project success (Dalborg, von Friedrichs and Wincent 2015). In order to calculate the project success the factors that are generally considered include are referred to as the project constraints such as time, cost and scope. Based upon the changing requirement of the consumers and generated feedback, the organization should develop their financial structure and stakeholders value. Portfolio management process cycle The project portfolio life cycle steps include: identification of the business need, evaluation of the business case, defining the project, identification of the vendors for developing the project, evaluation and selection of the vendors and contract management (De Clercq et al. 2013). After the contract management timesheet is required to be developed and based on that the asset management, performance measurement and risk optimization are done by the project managers. Organizational maturity In order to understand the maturity of an organization properly the components that are needed to be considered include people, process, data and technology. The people are responsible to influence the service delivery (Elston, Chen and Weidinger 2016). In order to measure the accuracy reliability and availability operational data are needed. On the other hand, for proper decision making adaptation of proper processes are also required. Application of all these components will lead an organization towards maturity. Conclusion From the overall discussion it can be concluded that, the main aim of a business organization is to lead the business towards measurable success by meeting the requirement of the consumers. In order to measure the business values different tools are required to be used. The tools those are widely used in the organizations to meet the need of the customers are also elaborated in this essay. Engineering project management process includes proper methodologies. The applications of the methodologies are also based upon the requirement of the consumers. The general system management, role of organizational structure and culture and importance of portfolio alignment re also elaborated in this report. In addition to this, the essay also depicted the business values, organizational maturity, and role of engineering risk management plan and the responsibility of a project manager in risk management. Apart from this, the portfolio management process cycle is also elaborated in this essay. References Aldrich, H. E., and Yang, T. 2014. How do entrepreneurs know what to do? Learning and organizing in new ventures.Journal of Evolutionary Economics,24(1), 59-82. Beringer, C., Jonas, D., and Kock, A.2013. Behavior of internal stakeholders in project portfolio management and its impact on success.International Journal of Project Management,31(6), 830-846. 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