Question 194 - COBIT 2019 discussion

An important component for an enterprise strategy archetype of cost leadership as defined by COBIT 2019 is support for the portfolio management role with an investment office. According to the COBIT 2019 Design Guide, cost leadership is one of the four generic enterprise strategy archetypes that describe how enterprises compete in their markets. Cost leadership means that an enterprise aims to offer the lowest prices for its products or services by minimizing its costs and maximizing its efficiency. One of the design factors that influence the governance system for a cost leadership strategy is the organizational structures. The COBIT 2019 Design Guide suggests that a cost leadership strategy requires a centralized and standardized organizational structure that supports the portfolio management role with an investment office. The portfolio management role is responsible for selecting, prioritizing, and balancing the IT investments that align with the enterprise strategy and objectives. The investment office is a function that assists the portfolio management role by providing financial analysis, reporting, and decision support.The support for the portfolio management role with an investment office helps to ensure that the IT investments are optimized for cost and value.Reference:: COBIT 2019 Design Guide: Designing an Information & Technology Governance Solution, page 482: COBIT 2019 Design Guide: Designing an Information & Technology Governance Solution, page 51