Microsoft ® Office Project Portfolio Server 2007

Introduction to Project Portfolio Server 2007 Microsoft Office Project Portfolio Server 2007 is a top-down portfolio management solution that helps organizations realize their potential by identifying, selecting, and delivering investments that best align with their business strategy

Microsoft Office Project Portfolio Server 2007 Is a Key Component in the EPM Solution Project Portfolio Server 2007 integrates with Project Server 2007 to provide organizations with an end-to-end project portfolio management (PPM) solution Executives Portfolio Analysts Project Managers Application Managers Line of Business Systems Project Managers Executives Resource Managers Team Members Project Server Gateway

Portfolio Management Is a Growing Market Portfolio management helps organizations improve decision-making and identify the investments that will deliver maximum business value Portfolio management is not just about projects Successful organizations must gain visibility, insight, and control across varied investment portfolios (projects, programs, applications, products) To maximize the return from IT investments, you must analyze and manage the interrelationships between application, asset, business process, and project portfolios An action taken in one portfolio may trigger changes in other portfolios Projects are vehicles for change

Application Valuation Application Transformation Decisions Application Inventory Update Application Redundancy Assessment Application Portfolio Management Portfolio Selection Portfolio Planning Portfolio Execution Project Capture & Valuation Project Portfolio Management New Project Requests New / Enhanced Applications Project Portfolio Server 2007 includes best-practice portfolio analytical techniques to help organizations manage project, program, and application portfolios Business Strategy IT Strategy Manage the Synergies Between PPM and APM

Project Portfolio Server 2007 Positioning and messaging Gain visibility and control Objectively prioritize and evaluate competing investments Tightly integrate with Project Server 2007 Optimize budget and align investments with business strategy

Top 10 Benefits of Project Portfolio Server New! Automate and enforce governance processes 2.Improved! Use best-practice PPM and APM methodologies 3.New! Capture all investments in a central repository 4.New! Objectively prioritize business strategy 5.Improved! Effectively prioritize and evaluate competing investments 6.Improved! Optimize budget and align with the business strategy 7.New! Reach the Efficient Frontier 8.New! Measure and track portfolio performance 9.New! Benefit from tight integration with Project Server Improved! Consolidate projects from federated Office Project Servers

Project Portfolio Management Microsoft Office Project Portfolio Server 2007

Ability to Identify Business Value Potential (Project Portfolio Server 2007) Ability to Realize Business-Value Potential (Project Server 2007) 75%100% 66% 100% 0% Portfolio Management Project Management 50% Value Realized 50% Value Lost Project Management helps ensure organizations successfully deliver the selected investments and realize the business value Select and Deliver the Right Investments Portfolio Management enables organizations to identify and select the investments that will maximize business value

Portfolio Reporting Benefits Realization Successful Organizations Use Both Disciplines Project Management Project Planning Cost Management Resource Management Time Reporting Change Management Issue Management Project Reporting Collaboration Portfolio Management Portfolio Governance Business Case Dev Benefits Forecasting Prioritization / Valuation Portfolio Optimization Adv Portfolio Analytics Capacity Planning Project Portfolio Management answers the following questions: Have I selected the right investments? Do the investments align with the strategic objectives? Do I have sufficient resources to deliver the selected investments? Will the investments be delivered on time and within budget? Are my investments delivering the forecast benefits?

CreateSelect Plan Manage PPM Life Cycle Steps Gov Phases EPM Solution PPM Process and Architecture Final Approval Baseline Microsoft EPM Solution Portfolio Dashboard Portfolio Optimizer Portfolio Builder Complete Project Request Form 1 st Review 2 nd Review Resource Requirements Business Case Development Cost Estimates Risk Assessment Phase & Milestone Planning Strategic Alignment Assessment Benefit Forecasts 3 Portfolio Prioritization Strategic Value Financial Value Risk Value Portfolio Optimization Charting Analysis Constraint Analysis Adv Portfolio Analytics Portfolio Selection Detailed Planning Develop Project Plan Assign Named Resources Define Interdependencies Project Tracking Time Reporting 1 3 Issues & Risk Mgmt Document Mgmt 4 5 Team Collaboration 6 Resource Mgmt 2 Portfolio Tracking Change Request Mgmt Status Reporting Portfolio Reoptimization Completed

Predefined workflows help ensure the projects are subject to the appropriate governance controls throughout their life cycle (from proposal to postimplementation) Capture all project requests within a central repository, and define business-case templates to standardize the data collection across the organization Capture Project Requests/Ideas 1 2 Portfolio Builder Create: Capture project requests in an enterprise repository Governance Workflow

Build a detailed business case for each project request in accordance with the governance workflow General Information 3a Cost Estimates Resource Estimates Benefit Estimates Strategic Impact Assessment Risk Assessment 3b 3c 3d3e 3f Portfolio Builder Create: Business case development

Use proven techniques to define and prioritize business drivers Derive a priority score to evaluate each project request (that is, strategic value, financial value, risk) Prioritize Business Drivers Prioritize Projects 4 Assess the impact of each project request against the prioritized business drivers Business Drivers Projects 5 6 Analyze the project portfolio before attempting to make funding decisions 7 Investment Maps Impact Assessment Portfolio Optimizer Select: Portfolio prioritization

Use sophisticated optimization algorithms to maximize the portfolio’s strategic value under varying budget constraints (that is, cost and resources) ‘What If’ Analysis Efficient Frontier Modeling Business Alignment Analysis Benchmark the selected portfolio against the Efficient Frontier Calculate and communicate the selected portfolio’s alignment with the organization’s strategic priorities Portfolio Optimizer Select: Portfolio optimization and advanced analytics

12 13 Create real-time project and portfolio performance scorecards to help ensure executives and PMOs gain visibility, insight, and control across project portfolios within the organization. Automatically drill down to the project to view periodic status reports. Project Status Report Portfolio Scorecard 11 Portfolio Dashboard Manage: Track and measure the portfolio performance Portfolio Reporting Use intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization.

#Portfolio Strategic Value Total EBIT Original Selection 51%$389 M Optimal Selection 82%$564 M Final Selection (includes mandated projects) 75%$526 M Strategic Value Gain = 24% EBIT Increase = $137 MM Gaining Control Portfolio optimization led to gains of $137mm EBIT, 24% strategic value for same budget

Application Portfolio Management Microsoft Office Project Portfolio Server 2007

Application Valuation Application Transformation Decisions Application Inventory Update Application Redundancy Assessment Application Portfolio Management Portfolio Selection Portfolio Planning Portfolio Execution Project Capture & Valuation Project Portfolio Management New Project Requests New / Enhanced Applications Business Strategy IT Strategy Rationalize and Manage Your Application Portfolio Project Portfolio Server 2007 includes best-practice portfolio analytical techniques to help organizations rationalize and manage application portfolios

APM Life Cycle Steps Gov Phases Application Rationalization: Process and Architecture Microsoft EPM Solution Portfolio Dashboard Portfolio Optimizer Portfolio Builder General Information Data Collection TCO Estimates Risk Assessment Operational Performance Assessment Business Process Assessment Architectural Fit Assessment 3 Derive Assessment Attributes Business Importance Architectural Fit Risk Manage Application Status Reporting Document Management 1 3 Enhancement Requests 4 Cost Management 2 Portfolio Tracking Transformation Road Map Cost Management 1 2 Operational Performance 4 Portfolio Analysis Redundancy Assessment Charting Analysis 2 1 Finalize Transformation Decisions Create AnalyzeManage Manage Transformation Projects via PPM Governance Processes

Create Application Inventory Portfolio Builder Create: Build an application inventory General Information TCO Estimates Architectural Fit Assessment Business Process Impact Risk and Operational Performance Surveys Consolidate all applications in an enterprise repository, and standardize and streamline the collection of key metrics across the organization

Use proven techniques to define and prioritize architectural strategy/drivers Understand the extent each application affects/supports the architectural strategy, and use this assessment to automatically derive an architectural fit score for each application Architecture Driver Pair-wise Matrix Architectural Fit Impact Assessment Architecture Driver Priorities L - Priority - H Application Architectural Fit Scores Portfolio Optimizer Two-step prioritization: Architectural fit score Step 1 Step 2 Applications Architecture Drivers

Business Process Priorities Use proven techniques to objectively prioritize the organization’s business strategy Business Process Impact Assessment L - Priority - H Business Driver Pair-wise Matrix Business Driver Priorities Derive a strategic value score for each business process by assessing its contribution to the success of each business driver Business Processes Business Drivers Portfolio Optimizer Three-step prioritization: Business importance score Step 1 Step 2

Application Impact Assessment Application Business Importance Score Business Processes Applications Derive a business importance score for each application by assessing the extent each application supports/automates each business process L - Priority - H Portfolio Optimizer Three-step prioritization: Business importance score (Cont’d) Step 3

This report allows analysts to compare the importance of the business processes with the annual cost of ownership of the applications that support and affect those processes. In the chart above, you can see that the accounting business process has a disproportionate cost relative to its business importance. Therefore, it is important to understand why the annual cost of ownership for this accounting process is so high. For example, are there redundant applications supporting this process? Highlight possible redundancies in the portfolio by identifying applications that support/affect the same business processes. The report above shows that the accounting business process is supported by seven different applications. Is there any functional overlap between these seven applications? Identify Redundancies in the Portfolio Business Process Value vs. Cost Comparison Portfolio Reporting Identify redundancies across the application portfolio

Create charts to visually evaluate the competing investments from multiple dimensions using the derived assessment scores and metrics (for example, business importance, risk, architectural fit, TCO, and operational performance) Portfolio Optimizer Evaluate the application portfolio and finalize transformation decisions

Create real-time application and portfolio performance scorecards to help ensure executives gain visibility, insight, and control across application portfolios within the organization. Automatically drill down to the application to view periodic status reports. Portfolio Scorecard Portfolio Reporting Use intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization. Application Status Report Portfolio Dashboard Manage: Track and measure the portfolio performance

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