Which method best supports the prioritization of new IT projects?

Investment portfolio analysis is the most effective method for prioritizing new IT projects because it focuses on evaluating and comparing the potential returns and risks associated with various investments. This approach allows organizations to align their IT projects with overall business objectives and allocate resources efficiently. By analyzing the expected benefits, costs, and strategic importance of each project, decision-makers can prioritize initiatives that will provide the most value and support the organization's goals.

This method also considers the interdependencies between projects, allowing for a comprehensive view of how investments can be optimized within the entire portfolio. It facilitates informed decision-making by quantifying the trade-offs involved in different project options, leading to better management of limited resources and strategic alignment. This structured evaluation can help organizations avoid over-investing in less impactful projects while ensuring that high-priority initiatives receive the necessary support and funding.