managing your it portfolio

IT Portfolio Management and the Integrated Enterprise

Bill Wimsatt, Wells Landers Group

http://www.wellslanders.com/index.shtml

www.wellslanders.com

Agenda

• Introductions• Business Case: Complexity of the

Integrated Enterprise• Portfolio Analysis Framework• Close


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


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.


Framework of Architectural Principals

Design

Decide

Inform

ArchitectureSystem ArchitectVisioPowerDesigner

Portfolio AnalysisFocal PointProsightChangePoint

Business IntelligenceRational InsightCognosPentahoBusiness Objects


Emphasis and Objectives


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.


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 –


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.


Technology Homogeneity and Conformance


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


Integrated Enterprise Planning


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”


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


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


System Architect as the integrated repository of architecture data /

artifacts supporting IT investment decisions


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


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)


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


Measuring the Efficiency of the Business Architecture

• Multiple Dimensions of Measurement• Architectural Analysis based on Qualitative and Quantitative measures

Analytics in Rational System Architect


Business Viewpoint (Decide/Inform)


Portfolio Decisions

Cost is size of Bubble

Intangibles:RiskConfidence of SuccessQuality


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


Time is Money


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?”


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.


AreaCategoryGroupin

gIndicator


• 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


Technical Analysis


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


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

managing your it portfolio

Documents

enterprise link business

enterprise systems

integrated enterprise

enterprise view

enterprise planning

architecture information

business perspective

business plan