8/3/2019 Managing the Application Portfolio
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Managing the Application Portfolio
Prof. Rushen Chahal
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Agenda
• Key questions on application portfoliomanagement
• IS/IT management methods
• IS/IT environments & application portfolios
• Key issues in application portfolio
•
Generic strategies• Portfolio management principals
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Key Questions on application
Portfolio Management - I• High potential
– Why: not clear
– What: not certain
– How: not yet known
• Strategic
– Why: do we want to do it in strategic terms?
– What: does the system need to do to gain theadvantage?
– How: best to do?
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Key Questions on application
Portfolio Management - II• Key operational
– Why: to improve performance and avoiddisadvantage
–
What: how much improvement? – How: best to do it
• Support
– Why: to reduce costs by improving efficiency
– What: of existing necessary tasks
– How: best to do it?
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IS/IT Management Methods - I
• Demand management – Opportunity seeking
– CSFs
– High potential & strategic IS
• Supply Management – Opportunity taking
–Current problem solving
– Key operational & support IS
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IS/IT Management Methods - II
• High potential (beware)
– Local
– Competitive focus (proactive)
– Technology driven
– Federation – business led, decentralized,entrepreneurial
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IS/IT Management Methods - III
• Strategic (attack)
– Corporate
– Competitive/effectiveness focus
– Business issue driven
– Complex – Organizational planning, idealmultiple methods based on goal seeking
– Coalition
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IS/IT Management Methods - IV
• Key operational (explore)
– Backbone: integrated (top down) planning ¢ralized control
– Reactive: current & effectiveness focus
– Business issues driven
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IS/IT Management Methods - V
• Support (safe)
– Traditional: stage of growth, isolatedapplications, & decentralized control
– Reactive: efficiency focus
– IT issue driven
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IS/IT Environments &
Application Portfolios• Traditional: support
• Backbone: key operational, support, & littlestrategic
• Opportunistic: High potential, support, littlekey operational, & little strategic
•
Complex: high potential, strategic, keyoperational, & support
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Key Issues in Application
Portfolio - I• High potential – Driving forces: new business idea or
technological opportunity
– Requirements: rapid prototyping, identifypotential, & the best method
• Strategic – Driving forces: Market requirements or
competitive pressures
– Requirements: rapid development
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Key Issues in Application
Portfolio - II• Key operational
– Driving forces: improving performance, dataintegration, & avoiding disadvantages
–
Requirements: data management, & cost/benefitanalysis
• Support
– Driving forces: legal requirements, & improving
productivity/efficiency, – Requirements: packaged software, & cost control
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Generic Strategies
• Centrally planned
• Leading edge
•
Free market• Monopoly
• Scarce recource
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Centrally Planned
• Management: central
• Organization: knowledgeable seniormanagement, & integration of IS/IT and
business planning process• IT: services matching business demands
• Line management: identifying IS/IT to
meet business needs• IS: strategic
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Leading Edge
• Management: technology creatingbusiness advantages
• Organization: sufficient funding, innovative
IS/IT management, & strong IT• IT: IT push
• Line management: using & identifying IT
advantages• IS: high potential
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Free Market
• Management: end users
• Organization: knowledgeable end users,duplication,& no budget control
• IT: competitive & profit centric
• Line management: identifying source &
control IS/IT development• IS: high potential, & support
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Monopoly
• Management: corporate integration
• Organization: users acceptance ofcentralized policies, & good usage of
resources• IT: satisfying users needs
• Line management: understanding needs
and get resources from central• IS: key operational
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Scarce Resource
• Management: justifying development
• Organization: tight budgetary
•
IT: making and justifying the best use oflimited resource
• Line management: identifying and
justifying business needs• IS: support
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Portfolio Management
Principals• High potential (wild cat - entrepreneur): processR & D, minimal integration, & cost control
• Strategic (stars – developer or empire builder):
continuous innovation, vertical integration, &high value added
• Key operational (cash cows - controller):defensive innovation, effective resource
utilization, high quality• Support (dogs - caretaker): disinvest/rationalize,
efficiency, & sustained quality
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Points to Remember
• Key questions on application portfoliomanagement
• IS/IT management methods
• IS/IT environments & application portfolios
• Key issues in application portfolio
•
Generic strategies• Portfolio management principals