1. Information Systems Portfolio Management
March 7, 2002

2. H:FINNERTY\PRESENTA\03/07/02
Agenda
Kraft background
Business
Information Systems
Some context to help think about Information Systems role
Aligning Business - Information Systems visions / strategies
Architecture
Kraft Portfolio Management Process
Key principles for successful IS Portfolio Management
Questions and answers
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3. Information Systems Portfolio Management Challenge
Breadth of the business
Many people
Many projects
Picking the highest value initiatives
Balancing short term return, longer term / strategic initiatives / and overall risk
Ensuring the right sequence of initiatives
Getting things to fit together towards a cohesive future vision
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4. Aligning Business and IS Strategy
Business Strategy & Direction
Catalyst Role
Technology
Core Business Processes
Information and Knowledge
Value
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5. Three-Legged Stool of Effective Change Management
People
Technology
Process
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6. H:FINNERTY\PRESENTA\03/07/02
KFIS Vision
Vision
Information Services will support Kraft Food’s vision of Undisputed Leadership and establish information as a source of competitive advantage by transforming the way people work, and harnessing
the collective knowledge and innovation of people throughout the company to out-think and out-perform the competition.
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7. H:FINNERTY\PRESENTA\03/07/02
Our Information Systems Strategies are Well Aligned to the Kraft Business Strategies
Strategies
Drive growth by enabling superior consumer insight, streamlining revenue producing activities, providing value added customer services and increasing collective innovation
Accelerate productivity by eliminating people, paper and time from business processes and providing people with unique insights into their activities and decision processes
Enable organizational excellence by providing people with instantaneous, relevant, integrated information and knowledge any time and any place in the world
Provide an information technology infrastructure which is reliable, secure and responsive at top 10% cost efficiency levels
Develop an integrated, information systems plan to support global food business and deploy solutions which enable global business processes
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8. H:FINNERTY\PRESENTA\03/07/02
Architecture
A set of guidelines and standards detailed enough that
people can work independently yet create an envisioned end
product
Blueprint for a house
Sub-division plan
City highway plan
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9. An Information Technology Architecture
Portal
Data Warehouse
Knowledge Repositories
EAI E-Hub Master Files
Applications
Buy Make Deliver Sell Market
Suppliers
Customers &
Consumers
Infrastructure
Desktop Database O/S Hardware Network Tools
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10. H:FINNERTY\PRESENTA\03/07/02
Portfolio Process
Projects > $250,000
Evaluation criteria aligned to Kraft business / IS strategies
Value to the company
Risk or ability to deliver
Cost to develop and run
Project write-ups submitted. Value and risk challenged by sub-committee
Project ranking by combination of value and risk developed
Senior management steering team with broad representation selected
Projects reviewed for understanding with steering team
Forced rank voting by steering team to apply strategic management judgement
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11. H:FINNERTY\PRESENTA\03/07/02
Portfolio Model
Portfolio Model Process Flow
Register project idea
IT investment proposal form (project definition)
Infrastructure review
Scoring of value and risk criteria
Cross-functional review
Senior Management Council review / selection
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12. The Following Criteria Were Used to Evaluate the IS Projects
An independent review committee evaluated all projects and ensured consistency of scoring
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13. Portfolio Application Model
Portfolio Model
Portfolio Application Model
100
Value to the Business 50
100 50
Ability to Succeed
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14. H:FINNERTY\PRESENTA\03/07/02
Portfolio Model
The Following are Key Factors Required for Success
of This Process
Buy-in within IS and our business partners that this is an equitable approach to funding IS development
Sufficient resources dedicated to perform good project write-ups (scope, benefit, costs, etc.)
Tailor project rating criteria to link with Kraft business and IS goals
Review committees that have the confidence of IS and our clients
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15. H:FINNERTY\PRESENTA\03/07/02
So What
80% of the IS investments went to the top 50 Kraft wide projects vs. functionally best projects
Stronger alignment to business, Information Systems objectives and wider support from senior business management
IRR from 20 to 100+%
Balance short term value, strategic investments and risk
Perceived to be fair, objective and equitable. . . rigor to the process and people got their day in court
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16. Our Strategies and Deliverables Support KFNA Strategies
Strategies LRP Deliverables
eCRM
Internet Marketing
CRIC
Idea to Market Rollout
Marketing and Global Brand Management Reengineer
Supply Chain Optimization / CPFR
Exception Based / Real Time Demand / eHub
Millenium / Trade Systems
eProcurement
Employee Portal
Best Practice Collaboration
Nabisco Integration
eLearning
Planning and Reporting / eFinance / Virtual Close
Fast Track Deployment of Systems
Component Based interfaces
Centralized Planning and Prioritization
Reliable, Secure, Responsive, Cost Effective Infrastructure
Network Improvements
Standardized Employee Productivity Tools and Support
Security and Business Continuance Investments
Data Center Outsourcing
Global Systems Plan
Global Process Enablement
Drive Growth
Accelerate Productivity
Enable Organizational Excellence
Enable IS Organizational Excellence
Cost Effective Infrastructure
Support Global Business
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17. 10 Principles for Successful Portfolio Management
Communicated direction (vision - strategies - goals)
Partnership (business process owner and Information Systems)
Architecture
Common, integrating processes
Systems development process
Master Files design
Project reviews
Think programs vs. projects
e.g. inventory reduction vs. new forecasting system
Alignment to business strategy and direction
Rigor and balance on priorities
Project tracking (cascading the top 10)
Think asset lifecycles (add, maintain, shed)
Trusted people
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18. Questions and Answers