Portfolio management is the practice responsible for ensuring an organization has the right mix of products and services to execute its strategy within its funding and resource constraints. A key activity of this practice is to review the entire service portfolio to identify and recommend the retirement of services that are no longer providing sufficient value or are not aligned with strategic objectives. This process explicitly aims to free up constrained resources (e.g., financial, human, technical) so they can be reallocated to new or more valuable initiatives, such as expanding into new markets as described in the scenario.

A. Service level management focuses on negotiating and meeting agreed-upon service levels for active services; it does not decide which services to offer or retire.

B. Business analysis identifies business needs and recommends solutions but does not have the authority to manage the entire service portfolio or make strategic divestment decisions.

C. Service catalogue management provides a single source of information on operational services for users but is not responsible for the strategic decisions about which services to retain or retire.

1. AXELOS. (2019). ITIL® Foundation: ITIL 4 Edition. TSO (The Stationery Office).

Section 5.2.11

Portfolio management: "The purpose of the portfolio management practice is to ensure that the organization has the right mix of programmes

projects

products

and services to execute its strategy within its funding and resource constraints." The section further clarifies that this includes decisions to "retire... existing products and services."

2. AXELOS. (2020). ITIL® 4: Direct

Plan and Improve. TSO (The Stationery Office).

Section 4.3.6

Portfolio management: This section describes how portfolio management helps "determine the optimum mix of initiatives to achieve strategic objectives

under the constraints of available resources... It involves reviewing the existing portfolio to identify candidates for improvement

replacement

or retirement."

3. Iden

J.

& Eikebrokk

T. R. (2013). Implementing IT Service Management: A systematic literature review. International Journal of Information Management

33(3)

512-523.

Section 4.2

Portfolio Management: The review highlights that a central tenet of portfolio management is the "evaluation and prioritization of IT investments

" which includes the "decommissioning of legacy systems and services to free up resources for more valuable projects." (DOI: https://doi.org/10.1016/j.ijinfomgt.2013.01.004)