Applying Portfolio Management Principles to Information Technology Projects

Portfolio Management Multiple Projects and / or Programs aligned to meet the strategic objectives of the organization 2

Information Management and Information Technology (IM-IT) No More IM-IT Projects! Just Business Projects with IM-IT components

No IM-IT Projects!! IM-IT should be an enabler to the business No direct line-of-sight between the IM-IT project and the business objectives IM-IT takes on a “mind of its own” Placing the IM-IT as a component to a business project increases the likelihood that the business objectives remain paramount to the project success 4

Large Application Development Projects 9 per cent on time and on budget 73 per cent never finish 94 Restarts for every 100 starts Major cost and time overruns Lots of conflict Standish Group

Dramatic Differences by Size

Projects without Portfolio Management 7 Strategic Objectives

With Centralized Control 8 Mandate

With Portfolio Management 9 Vision

Portfolio of Projects Multiple Projects and / or Programs aligned to meet the strategic objectives of the organization Vision based Alignment via strategic objectives Project teams know where the alignment is Individuals know “why” they are doing the work Feels like a small project Proactively looking for innovative, and simpler, ways to solve business problems A Large IT Project A single Project managed to meet specific objectives including time, quality and budget Hierarchical based Prescriptive approach Centralized command and Control “How” each sub-project is managed is controlled Feels onerous You only have 3 variables: time, cost and quality and you can only choose 2 out of 3 10 There is a difference!

Enterprise Application Architecture?? Sounds scary, usually is Small Projects are completed on time, large projects are not (91% of the time) Client Manager already knows what he/she wants Don’t add centralized complexity to my project and cause it to fail

New Building – New Subdivision Someone has to figure out how your house exists in relationship to your subdivision Municipal developments are more mature than IT, so you would know that you need connections for: – Water – Sewer – Natural gas – Electricity – Road IT has to figure out what those connections are… As the subdivision owners - Standardized the Connections and then get out of the way to let each builder to their own thing

Three Enterprise Functions 1.A common “Stakeholder” Management Application Any Entity / Stakeholder with a set of Name, Address, and Demographic A common Company-id and Individual-id It is the central point around which the Enterprise Data Model is developed 2.A common method of handling all types of Transactions Audit Trail Financial Integrity 3.A common method of identifying all of the Products and Services within the Enterprise

Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware One Application at a Time

Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Application Customer Mgmt Product Definition Business Trans Integration Middleware Enterprise Complexity

Enterprise Chaos “70% of all code written today consists of interfaces, protocols and other procedures to establish linkages among various systems” - IBM

Customer Mgmt Application Product Definitions Business Transaction Business Application Enterprise Application Architecture 111 Start the enterprise migration towards simplicity Business Application Corporate Data Model Infrastructure, Network, Corporate Security, Imaging Systems, etc

Three Enterprise Functions Exponentially less complex interfaces Inherently higher quality data Automation in support of the business reality There really is only one: – Customer – One set of Buyers and Suppliers – One set of Facilities – One way to track who did what where and when – One set of product lines, products, and components

Driver Improvement Program Traffic Safety Workshops Medical Programs Graduated Driver Licence Drivers License Example Independent Business programs Multiple legacy systems in support of each program Each Legacy system with its’ own Customer File, set of Products, and style for handling transactions (and Financials) No apparent commonality of business function No collaboration across business units

Perform Close-out Issue SK Licence Provide Identification New Driver <= 16? No Perform IRE Check Suspended? Drive, Live, in SasK Monitor Driver Performance Action Req’d? Issue Licence Determine Action Set up Course Enroll Customer Monitor for Completion Completion? Yes No Course/Training Suspension No Yes Generic Driver Life Cycle No Yes Transaction History 96 % of the population are good drivers 4 % have a plethora of issues

Driver Improvement Program Traffic Safety Workshops Medical Programs Graduated Driver Licence Departmental Focus Remains Custom Requirements Custom Requirements Custom Requirements Custom Requirements Common Data and Application Design User interface Product Line Products Table Values User interface Product Line Products Table Values User interface Product Line Products Table Values User interface Product Line Products Table Values Departments feel like they have their own unique system, but “behind the scenes” they have one integrated system with accurate, non duplicated enterprise data

Enterprise Myths You have to have all the vested parties in the same room at the same time (Joint Venture) You need exponentially more communications when you have enterprise functions IM-IT projects will solve business problems (“Systems” solve business problems. Systems are made up of Inputs, Processes and Outputs) Buying it will reduce risk and increase chances of success 22

23 Customer Mgmt Application Product Definitions Business Transaction 4 Justice projects in flight Enterprise Application Architecture 11 1 Start the enterprise migration towards simplicity 3 other Justice Applications Applications Education Social Services Applications Corporate Data Model Infrastructure, Network, Corporate Security, Imaging Systems, etc