Change????Change???? I Hate Change I Love Change
Where are opportunities to reduce my IT operating budget without impacting business/mission? What systems/services am I providing that are running at risk over the next 12 months, and which capabilities would be impacted? Given a set budget and a list of strategic priorities, what are the projects I should be working on and why?
Define IT Portfolio Management Common IT Portfolio Management Challenges How to Manage your IT Portfolio: Define Goals Document... Bring It All Together Continuous Process Improvement To Tool or Not to Tool?
IT portfolio management is the application of management to the investments, projects and activities of Enterprise Information Technology (IT). Capabilitie s & Services Business Strategic Goals Applications & Projects IT Cost IT Portfolio Management
IT Portfolio Management is Art not Science
Align Expenditures and Effort with Strategic Goals Identify, Quantify, and Prioritize Consolidation Opportunities Operational Expense (OPEX) Reduction Improve Effectiveness of Capital Expenditures (CAPEX) Methodically Reduce Risk through Analysis
1)Complexity of Portfolios 2)Diverse Stakeholders with Competing Priorities 3)Constant State of Flux 4)Lack of Visibility across the Enterprise 5)Scattered Data Sources
Then Prioritize Goals to... Set Concrete Direction for the Organization Establish Litmus Tests for Project Selection
Improve CAPEX Effectiveness Central Oversight to Align IT Investments with Strategic Goals Reduce OPEX w/o Degrading Mission
IT Applications and Supporting IT Components Include vendor support timelines for each Enables proactive upgrade planning
New or Ongoing Planned (Funded and Unfunded)
Capabilities
Services Provided by Whom? To Whom? How Often? Quality of Service?
IT Applications and Components Project Pipeline (funded and unfunded) Capabilities Services
IT Applications ( IT Components) Projects Capabilities Services R esponsible A ccountable C onsulted I nformed Who is...
Reduction of CostEffectiveness of Investments OPEX Run the Business Enterprise Architecture Status Quo CAPEX Change the Business Projects Innovation
Total IT Budget Transform the program (CapEx) Time Keep the lights on (OpEx) budget cuts more and more IT to support (Typical)
…do I Reduce OPEX? …do I Maximize value of CAPEX?
Sustaining Unused Functionality Duplication of Effort or Capability Premiums to Extend Expired Vendor Support
Prioritize Efforts to Remove Cost Culprits Identify Affected Stakeholders Perform Impact Analysis Create and Execute Change Management Plan
Eliminate Projects not in Line with Strategic Goals Prioritize According to ROI and Rate of ROI Consider short term returns vs. long-term sustainability Set Expectations with Stakeholders
Analyze Application Vendor Support Timelines Periodically Track Project Progress Periodically Re-Evaluate Project Pipeline to Strategy Re-baseline when Strategic Direction Changes
For Large Enterprises, Tools are Necessary to Manage Complexity For Small Organizations, Ad Hoc Tools can Suffice
Change Management (Eg. Training) to Implement Art not Science Diverse and Scattered Data Sources Diverse Stakeholders Diverse Roles and Responsibilities Yet Another System to Manage
Magic Quadrant for Integrated IT Portfolio Analysis Applications, Gartner, November 2012 Magic Quadrant for Enterprise Architecture Tools, Gartner, October 2012 The Forrester Wave™: Enterprise Architecture Management Suites, Forrester, April 2011