Managing Your IT Portfolio
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IT Portfolio Management and the Integrated Enterprise
Bill Wimsatt, Wells Landers Group
www.wellslanders.com
Agenda
• Introductions• Business Case: Complexity of the
Integrated Enterprise• Portfolio Analysis Framework• Close
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Business Architecture & Analysis
• Strategic Planning• Actionable Metrics Derivation• Business Requirements
Technical Architecture & Analysis
• Enterprise & Tech Architecture• Data Warehouse Design• Data Mart Design• ETL Planning & Deployment• System Integration (Storage, Network, SOA)
Deployment • Security Infrastructure• Storage Management• Services Architecture
We are a professional services firm HQ’d in McLean, VA
o Federal and Commercial customer baseo Sister company TVAR Solutions
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Integrating EA Value
• Use the Design, Decide and Inform methodology to make decisions based on federated data, communicate the state of Enterprise Architecture across the organization and ensure compliance with documentation requirements.
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Framework of Architectural Principals
Design
Decide
Inform
ArchitectureSystem ArchitectVisioPowerDesigner
Portfolio AnalysisFocal PointProsightChangePoint
Business IntelligenceRational InsightCognosPentahoBusiness Objects
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Emphasis and Objectives
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A Few EA Observations
• There is no single approach to establishing an effective Enterprise Architecture program
• When done correctly, EA is a manifestation of an organization’s mission, and the IT strategy which enables the mission
• The true measure of the effectiveness of EA is the extent to which it changes day-to-day behavior and decision making
• Many EA efforts fail because they attempt to be all encompassing and drive for perfection
• Enterprise Architecture is a process not a project. It must on-going and organic
• Producing EA artifacts is not enough. Too many EA teams focus on producing frameworks, diagrams, domain architectures, etc. And when they are done they declare victory.
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The Problem with many EA Initiatives
• Many EA Initiatives Lack Clear Business Goals & Drivers (Gartner)• Result: From “Business” Perspective, EA doesn’t deliver Any
Value• Thus, EA Initiatives are difficult to sponsor and fund• Or, EA results are mandated, but efforts are not supported by
key stakeholders
o You must measure value and success of allEnterprise Architecture projects –
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Start with the Big PictureAn Enterprise View is Required for Enterprise
Planning
Link, consolidate and analyze IT architecture information in blueprints
Strategies, goals and organization
Applications, services and data
Systems, networks and components
Simplified modeling with robust support for standards
Create a common and consistent information resource to guide enterprise planning
Multiple modeling standards in one tool
Changes are propagated throughout the data blueprint, simplifying maintenance
Enterprise blueprinting with interactive visualization and analysis
Enterprise Architecture identifies corporate systems, their key properties, and their interrelationships, and plans for and guides the evolution of the enterprise systems to support and enable the evolution of the enterprise in its pursuit of strategic advantage.
Enterprise Architecture identifies corporate systems, their key properties, and their interrelationships, and plans for and guides the evolution of the enterprise systems to support and enable the evolution of the enterprise in its pursuit of strategic advantage.
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Technology Homogeneity and Conformance
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Actionable Architecture
Business and Technology Impact
Resources and costs
Business
Strategy
Harvest Enterprise Information
Architect the Enterprise
Link Business / IT Perspective
Consolidation Planning
Cost Cutting
Enterprise Reporting / Impact Analysis
Solution Planning
Opportunities and Solutions
Solution Implementation
and Governance
Architecture Vision
Businessand IT
Architectures
Optimized Solution / IT Planning
Change / Transformation Implementation
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Integrated Enterprise Planning
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Results!Enterprise Architecture: Who
benefits
Prioritize IT investments to support business goals Maximize budget and resources with business-IT collaboration
Turn strategy into execution and measure the results Efficiently deliver solutions that keep pace with the business plan
Improve risk management of organizational transformation Plan and execute change faster and with better insight
Make faster, better-informed strategic and tactical decisions Enterprise blueprinting with interactive visualization and analysis
“Our enterprise planning helped us recover £10M in costs by optimizing IT
landscapes & processes”
“We have seen a 33% reduction in IT end-user
costs based on implementation of
enterprise architecture”
“We saved $20M by finding and avoiding risk in the
implementation of a new merchandising system.”
“Our global insurance company saved $10.5M in the first year by better
aligning IT resources to business processes”
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Inventory (Build and Maintain Inventory) Application identity and basic information
Financial (Analyze and Manage Portfolio) Detailed application-level costs and cost-effectiveness analyses
Assessment (Analyze and Manage Portfolio)
Risk, Operational Performance, Architectural Fit
Alignment (Optimize Portfolio) Process Inventory, contribution, function association Core Business Drivers, priorities, process
contribution
Level I
(Ste
p 1
)
Level II
(S
tep
s 2
an
d 3
)
Level II
I (S
tep
s 2
an
d 3
)
Level IV
(S
tep
4)
InitialDeploymentFocus
Step Approach
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Tool Assisted Decisions Subjective Business DecisionsTransition to Executive Decision Making Process
Step 1 – Level I
Collect, Validate, and Maintain Data
(Build and Maintain Inventory)
Step 2 – Levels II & III
Perform Assessments
(Analyze Portfolio)
Step 3 – Levels II & III
Determine Dispositions and Life Span Transition
Roadmap
(Manage Portfolio)
Step 4 – Level IV
Determine Priorities, Timeframes, Costs, and
Benefits
(Optimize Portfolio)
Funding Requests
Investment Portfolio Management (IPM) Process
One-Time Work
•Perform initial collection and validation of remaining data
Ongoing Work
•Perform data changes and validations as they occur
•Collect and validate data for implementation projects transitioning to applications assets
Major Data Elements•ID•Costs•Business criticality•Business processes enabled or supported•Functional quality•Technical quality•Risk profile
Identify
•Business problems/issues
•Technical problems/issues
•Risk vulnerabilities, probabilities, and impacts
•Other problems/issues
Evaluate
•Status/Health (Good, Bad, Moderate)
•Value to organization (High, Moderate, Low)
•Risk of unrecoverable failure (High, Medium, Low)
Consider•Cost-effectiveness•Risk acceptability – status of
Identify•Problems/opportunities•Alternative approaches•Best actions for managing application over expected life spans•Mission criticality/importance to agency
Determine Whether To•Invest additional funds (technical or functional enhancement or replacement)•Sunset/eliminate•Consolidate•Replace and consolidate as part of an agency wide or state wide initiative•Continue maintenance
Identify•Dependencies on other applications and projects•Costs/fiscal requirements•Technical infrastructure requirements•Benefits/value to accrue•Alignment with state/agency priorities
Confirm and/or Develop
•Implementation approach
Determine Priorities and Timeframes•Select priority for action (High, Medium, Low)•Select timeframe for action (Immediate, Near-Term, Long-Term)
Potential Benefits for Selected Actions•Cost savings from consolidate/eliminate applications•Improvements in public service, reliability, recoverability, and security resulting from functional/technical renovation or replacement
Applications Portfolio Management Process
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System Architect as the integrated repository of architecture data /
artifacts supporting IT investment decisions
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Integrated Enterprise Analysis
SystemArchitect
EnterpriseModeling
PPM/ITPM
Project Portfolio& Analysis
EA and Application Portfolio
Metric Analysis, Scorecards, Dashboards
Integrated ODS
WL SARGE
Project Mgmt
Project Schedule,Resources
Metric Analysis, Scorecards, Dashboards
Project Portfolio Analysis
Other Sources: Capital Planning, HR, Assessments
WL Courier
Wells Landers Group ~ Proprietary Information
WL FoRGE
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Decision Axes
Business Value
IT E
ffic
ienc
y
Fina
ncia
l
Attrac
tiven
ess
How well the investment will use or enhance the existing infrastructure (Y Axis)
How well the investment will use or enhance the existing infrastructure (Y Axis)
The corporate impact of an investment on business strategy and priorities. (X Axis)
The corporate impact of an investment on business strategy and priorities. (X Axis)
The financial aspects of the investment including level of investment required, cost/benefit ratio, and net present value. (Z Axis)
The financial aspects of the investment including level of investment required, cost/benefit ratio, and net present value. (Z Axis)
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Investment Ranking
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
Business Value
IT Efficiency
Enterprise Virtual DriveeBiz KappCDN/CDS integrationP2P Client Backup/RestoreSkoolSecure Content DistributionCDN/CDS integrationP2P WAN offloadeLearningWlist IntegrationCDS eMail
Evaluating the Investment Rankings
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Measuring the Efficiency of the Business Architecture
• Multiple Dimensions of Measurement• Architectural Analysis based on Qualitative and Quantitative measures
Analytics in Rational System Architect
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Business Viewpoint (Decide/Inform)
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Portfolio Decisions
Cost is size of Bubble
Intangibles:RiskConfidence of SuccessQuality
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Prioritizing via IntangiblesPairwise Comparisons provide a unique and powerful for maximizing Stakeholder Communication, assigning Relative Rank, providingMeasurable Results, as well as Consistency and Discrepancies which provides clearer definitions and results.
•Confidence of Success•Confidence in Quality•Customer Satisfaction
Example Intangible Criteria
"Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted"
- Albert Einstein
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Time is Money
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Effective Arch. and Portfolio Measurement - not point-in-time, but how well you do over time. You should be able to ask questions such as:“How is value tracking overtime versus efficiency and risk?”
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EA Analysis and Advanced ReportingThe Instrument Panel for Business
Transformation • Quickly see critical issues and rapidly correct them. • Consolidate information across functions—programs,
operations, HR, finance—to gain a better view of overall performance.
• Manage personnel skills requirements and inventories to more effectively deploy resources, identify skill gaps and anticipate when to outsource services.
• Provide staff with an easy-to-use interface to see and analyze the same information as well as understand the strategy and their roles in executing it.
• Eliminate “best-guess” project milestones through predictable planning and better communication with citizens, administrators and staff.
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AreaCategoryGroupin
gIndicator
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• Analysis Function How is the Client allocating and spending IT dollars against
Mission priorities How is the Client CIO spending money within his defined
organizational to support his overall IT mission goals. Are the sub-organizations allocating monies towards Client CIO’s priorities?
• Example Analysiso The majority of our dollars are budgeted against our highest rank performance measures.o We have an oddity in our 5th ranked performance measures are receiving more money than
the 2nd and 3rd ranked performance measures.o We have 1 new system coming on line supporting 1st ranked performance measures that will
have a 1% increase in the budget.o We 3 new systems coming on line supporting the 3rd ranked performance measures that have
9% increase in the budget.o ~1/3 of budget has not been mapped to a performance measure.o The higher ranked performance measures generally have more budget. The exception is the
5th ranked performance measures.o Of the mapped systems, as 60% of the performance measures have a greater percentage of
dollars (budget) that percentage of systems. Different metrics can be built (i.e., # of BRM mappings compared to budget dollars).
Business Alignment Analysis
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Technical Analysis
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Technology Analysis
• Analysis Functiono Focus Client IT resources and Client IT procurement personnel to develop enterprise license
agreementso Focus Client IT resources on areas of technology consolidation to minimize that number of
vendors and support contracts for database technologies.o Realize cost saving through enterprise license agreementso Reduce database technology complexity.o Reduce the need for specialized help desk and system administration needso Increase data sharing and access through use of enterprise database solutionso Identify and retire legacy database technologieso Support an enterprise IT storefront concept with database standards, bulk procurement, and
standard configurations
• Example Analysiso The biggest impact to license consolidation may come from the database technology area.o This tell us that Oracle Database technology is the most frequently mapped to the
enterprise systems within the enterpriseo Shows us that a lot of systems use Microsoft Access as database technology which may or
may not be a performance issue based on what the system requirements. Furthermore, these systems may be candidates for a consolidated data center with enterprise class database processing and storage.
o A place to mine for enterprise licenses opportunities with the more frequently used technologies
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Benefits to the Enterprise
• Common understanding across community stakeholders, staff and executives of key challenges and desired changes
• Standard skill sets from staff – no new training required
• Selection, ranking and prioritization of the right initiatives that result in highest value and outcomes
• A clear roadmap to manage the impact, deployment, and change incurred by simultaneous projects, assuring they are delivered on time, and within budget.
• Clear reporting on usage of technology, funds and overall program status
Transparency and AccountabilityThroughout Project Lifecycle
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