1. Microsoft® Office Project Portfolio Server 2007
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Microsoft® Office Project Portfolio Server 2007
01/19/06 - Microsoft Acquires UMT Portfolio Manager for the following reasons:
Integrate Portfolio Management technology and best practices within the EPM Solution.
Provide customers and partners with an unrivaled end-to-end Project Portfolio Management platform.
Help organizations to realize their potential by identifying, selecting, and delivering project portfolios that align with their strategic priorities.
Why UMT?
The UMT Portfolio Manager solution is widely recognized by industry analysts as the leading top-down Portfolio Management tool.
The UMT Portfolio Manager had a proven track record with Fortune 500 companies.
UMT Portfolio Manager was ranked as the performance market leader in the META Group May 2004 Portfolio Management Tools METAspectrum Report.
The out-of-the-box product already had tight integration with Project Server 2003
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

2. Introduction to Project Portfolio Server 2007
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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
Office Project Portfolio Server 2007, a key component of the Microsoft Office Enterprise Project Management (EPM) Solution, can help executives gain visibility, insight, and control across their project, program, and application portfolios
Office Project Portfolio Server 2007 can help organizations to:
Automate and standardize governance processes to help ensure projects are subject to appropriate controls
Consolidate business and information technology (IT) investments within an enterprise repository to improve visibility and insight
Objectively evaluate and prioritize competing investments from multiple dimensions
Optimize budget utilization and select investments that best align with the organization’s business strategy
Tightly integrate with Microsoft Office Project Server 2007 to track the performance of each investment throughout its life cycle, from business case creation to benefits realization
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

3. Project Server Gateway
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Microsoft Office Project Portfolio Server 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
Line of Business Systems
Line of Business Systems
Project Managers
Executives
Portfolio Analysts
Project Managers
Application Managers
Executives
Resource Managers
Team Members
The Office Project Portfolio Server 2007 is a key component of the Microsoft EPM Solution
The product can be deployed independently to help organizations mange their project, program, and application portfolios
Customers that require a full end-to-end project portfolio management solution should also implement the other products within the EPM Solution
The Office Project Portfolio Server 2007 includes the Project Server Gateway, a bi-directional link with Office Project Server This link helps ensure that detailed data in Project Server (such as Named Resources or Detailed Tasks) can be automatically aggregated to the summary level in Office Project Portfolio Server 2007 for reporting and portfolio analytics. For example:
Schedule Data: Office Project Portfolio Server 2007 provides organizations with phase-level and milestone-level scheduling capabilities. While Office Project Server 2007 helps ensure organizations can plan and track their projects at the detailed level (such as create a detailed project plan), the Project Server Gateway ensures the detailed task data (in Project Server 2007) is automatically synchronized with the relevant phases and milestones in Office Project Portfolio Server 2007.
Resource Management: Office Project Portfolio Server 2007 provides resource management capabilities at the skill level only (such as developer, project manager, or business analyst), while Office Project Server 2007 helps ensure organizations can manage resource assignments and track resources at the name level (for example, Matthew Carroll who is a product manager). The Project Server Gateway automatically aggregates the name resources (in Office Project Server 2007) to the appropriate skill types in Office Project Portfolio Server 2007.
Enterprise Custom Fields. The Project Server Gateway maps enterprise custom fields (in Office Project Server 2007) with the attributes in Office Project Portfolio Server 2007.
The EPM Solution provides customers and partners with an end-to-end project and portfolio management solution.
Project Server Gateway
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

4. Portfolio Management Is a Growing Market
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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
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

5. Manage the Synergies Between PPM and APM
Project Portfolio Server 2007 includes best-practice portfolio analytical techniques to help organizations manage project, program, and application portfolios
Business Strategy
IT Strategy
Application
Valuation
Portfolio
Selection
Application
Redundancy
Assessment
Application
Transformation
Decisions
New Project Requests
Project
Capture &
Valuation
Portfolio
Planning
Application
Portfolio
Management
Project
Portfolio
Management
The above diagram shows the synergies between Project Portfolio Management and Application Portfolio Management.
Application Portfolio Management methodologies help organizations create an inventory of all legacy applications, rationalize the application portfolio to remove redundancies, and effectively manage the application portfolio.
Any changes to the application portfolio (such as enhancing an application or sunsetting an application) result in a transformation project.
The transformation projects are then managed via your organization’s Project Portfolio Management governance processes (that is, Create, Select, Plan, and Manage).
After successful completion of the project (such as building a new application), the application inventory should be automatically updated (for example, by adding the new application to the inventory).
Application
Inventory
Update
Portfolio
Execution
New / Enhanced Applications
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

6. Project Portfolio Server 2007 Positioning and messaging
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Project Portfolio Server Positioning and messaging
Objectively prioritize and
evaluate competing
investments
Gain visibility and control
Optimize budget and align
investments with
business strategy
Tightly integrate with Project Server 2007
Gain Visibility an d Control Across Portfolios
Customer Challenges
It can be a daunting task to successfully define, communicate, and enforce a portfolio governance framework that helps ensure all projects are subject to the appropriate controls.
Without a centralized location for capturing all investments, or standardized methods for collecting data, organizations struggle to effectively manage their project, program, and application portfolios.
PPS 2007 Solution
Quickly gain visibility and control across your project, program, and application portfolios by automating governance processes, standardizing and streamlining the collection of data, and tracking portfolio performance to maximize return on investment (ROI) and improve operational efficiencies.
Consolidate the collection of essential data for all business and IT investments in a central enterprise repository
Define multiple workflows to standardize, communicate, and enforce the portfolio governance framework across the organization
Create personalized scorecards to track investments throughout their life cycle
2) Objectively Prioritize and Evaluate Competing Investments
Developing objective scoring criteria to effectively evaluate competing investments is easier said than done. It can be difficult enough to compare similar projects, and seemingly impossible to make comparative evaluations among dozens or hundreds of competing projects.
Employ proven best practice techniques to help objectively prioritize your organization’s business strategy for the upcoming planning period. Automatically derive prioritization scores to evaluate the project, program, and application portfolios from multiple dimensions.
Define and prioritize business strategy and drive consensus among executives using the pair-wise comparison matrix technique
Derive prioritization scores such as strategic value, financial value, risk, architectural fit, and operational performance to objectively assess projects, programs, and applications
Generate charts to effectively evaluate potential investments within the portfolios
3) Optimize Budget and Align Investments with Business Strategy
Often it is the executive who shouts the loudest that influences portfolio funding decisions. To help ensure that the selected portfolios align with the organization’s business strategy, the selection process must be rational rather than emotional. Implementing such a process can be a challenge.
Use embedded best practice methodologies, including the Business Alignment Framework, to optimize budgets and recommend portfolios that best align with the organization’s business strategy. This objective process enforces a rational rather than emotional approach to portfolio selection, to help ensure that the selected investments deliver the maximum business value.
Employ sophisticated optimization algorithms to determine the optimal project or program portfolio under varying budget and business constraints
Use advanced portfolio analytical techniques, including insight analysis, to identify and break the constraints prohibiting the portfolio from reaching the Efficient Frontier
Undertake a business alignment assessment to help ensure that the selected portfolios are optimally aligned with the organization’s business strategy
4) Tightly Integrate with Office Project Server 2007
Automating the data exchange between line-of-business applications (such as finance and HR), enterprise project management solutions, and portfolio management tools is a common issue, often requiring the development of custom third-party connectors.
Tight integration between Office Project Portfolio Server 2007 and Office Project Server 2007 provides organizations with an end-to-end project portfolio management solution. Office Project Portfolio Server 2007 is a key component within the Microsoft EPM Solution, providing the following benefits:
Help ensure that customers and partners can quickly deploy world-class portfolio analytical techniques and tools within the EPM Solution
Maintain data integrity between the two environments through regular synchronization events
Enable portfolio analysts to link federated computers running Office Project Server 2007 to Office Project Portfolio Server 2007 and consolidate projects into an enterprise repository
Provide organizations with a scalable end-to-end project portfolio management solution
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

7. Top 10 Benefits of Project Portfolio Server 2007
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Top 10 Benefits of Project Portfolio Server 2007
1. 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 2007
10. Improved! Consolidate projects from federated Office Project Servers
Automate and enforce governance processes
Define multiple workflows to subject each project to the appropriate governance controls throughout its life cycle—from proposal to post-implementation.
Employ best practice methods
Use out-of-the-box templates—such as a business driver library or risk assessments—and embedded best practice methodologies to more effectively manage project, program, and application portfolios across the organization.
Capture all investments within a central repository
Consolidate business and information technology (IT) investments within an enterprise repository to improve visibility, insight, and control. Flexible configuration forms help administrators quickly build and publish templates, standardizing and streamlining the collection of data for all portfolios.
Objectively prioritize business strategy
Employ proven techniques to define and prioritize your organization’s business strategy for the upcoming planning period.
Effectively prioritize and evaluate competing investments.
Utilize best practice techniques to automatically derive prioritization scores—such as strategic value, financial value, and risk—and develop investment maps to effectively evaluate the competing investments from multiple dimensions.
Optimize budget and align selected investments with the business strategy
Run optimization what-if scenarios to identify tradeoffs and select the optimal portfolio under varying budgetary and business constraints that best aligns with your organization’s business strategy.
Reach the Efficient Frontier
Take advantage of advanced portfolio analytical techniques—for example, insight analysis—to identify and break the constraints prohibiting the portfolio from reaching the Efficient Frontier.
Measure and track portfolio performance
Monitor the performance of each investment to help ensure you realize the forecast benefits. Re-optimize the portfolio in accordance with your governance process to help maintain continuous alignment with your organization’s business strategy.
Benefit from tight integration with the Microsoft Office EPM Solution
Quickly deploy world-class portfolio analytical techniques that are tightly integrated with Microsoft Office Project Server 2007, providing your organization an end-to-end project portfolio management solution.
Consolidate and analyze projects across federated Project servers
Link federated Microsoft Office Project servers to Office Project Portfolio Server 2007 to consolidate all projects within an enterprise repository, helping you to quickly gain visibility, insight, and control across all project portfolios.
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

8. 5/27/2018 9:31 PM
Project Portfolio Management Microsoft Office Project Portfolio Server 2007
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

9. Select and Deliver the Right Investments
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Select and Deliver the Right Investments
Portfolio Management enables organizations to identify and select the investments that will maximize business value
100%
50%
Value Lost
Portfolio
Management
Project
Management
66%
Ability to Identify Business Value Potential (Project Portfolio Server 2007)
50%
Value Realized
Project Management helps ensure organizations successfully deliver the selected investments and realize the business value
The above diagram shows portfolio management on the Y-axis and project management on the X-axis.
More is known about project management. Project management techniques help organizations to effectively deliver projects (on time, on budget).
Less is known about portfolio management.
Many people believe that portfolio management is just concerned with aggregate level reporting (such as reporting across a portfolio of projects). This is wrong.
Portfolio management is not just concerned with projects. Portfolio management helps organizations manage many different investment types (such as projects, programs, applications, and products).
Portfolio management includes analytical techniques that help ensure organizations select investments (or projects) that will maximize business value.
Organizations that solely invest in enhancing their project management capabilities are in danger of delivering sub-optimal portfolios (that is, delivering the wrong projects on time and on budget).
The truth is that successful organizations need to invest in developing both disciplines (project management and portfolio management) to help ensure they select and deliver project portfolios that align with the organization’s strategic priorities and maximize ROI. 0%
75%
100%
Ability to Realize Business-Value Potential
(Project Server 2007)
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

10. Successful Organizations Use Both Disciplines
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Successful Organizations Use Both Disciplines
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?
Project Management
Project Planning
Cost Management
Resource Management
Time Reporting
Change Management
Issue Management
Project Reporting
Collaboration
Successful organizations require both disciplines.
Portfolio Management (supported by Office Project Portfolio Server 2007) starts before and goes beyond traditional Project Management (supported by Office Project Server 2007) and includes the following capabilities:
On the front end:
Portfolio governance
Business case development
Benefits forecasting
Analytical techniques to prioritize, optimize, and select the portfolio that best aligns with the organization’s strategic priorities.
Capacity planning
On the back end:
Portfolio level reporting
Benefits realization
Merging these two disciplines forms Project Portfolio Management, which answers the following questions:
[Read from slide]
Portfolio Reporting
Benefits Realization
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

11. EPM Solution PPM Process and Architecture
Gov Phases
Create
Select
Plan
Manage
Complete
Project
Request
Form
1st
Review
2nd
Review
Portfolio Prioritization
Detailed Planning
Portfolio Tracking 1
Strategic Value 1
Develop Project Plan 1
Change Request Mgmt 2
Financial Value 2
Assign Named Resources 2
Status Reporting 3
Risk Value 3
Define Interdependencies
PPM
Life Cycle Steps 3
Portfolio Reoptimization
Business Case Development 1
Resource Requirements
Portfolio Optimization
Project Tracking 2
Cost Estimates 1
Charting Analysis
Final
Approval
Baseline 1
Project Tracking 3
Benefit Forecasts 2
Constraint Analysis 2
Resource Mgmt 4
Strategic Alignment Assessment 3
Adv Portfolio Analytics 3
Time Reporting 5
Risk Assessment
Completed
Portfolio
Selection 4
Issues & Risk Mgmt 6
Phase & Milestone Planning 5
Document Mgmt 6
Team Collaboration
Microsoft EPM Solution
Portfolio Builder
Portfolio Optimizer
Portfolio Dashboard
The diagram shows the following:
Best practice governance phases (Create, Select, Plan, and Manage): A project will pass through these best practice phases throughout its life cycle.
PPM Life Cycle Steps: These more granular steps provide more detailed overview of the primary activities and events that a project will complete during its life cycle. For example:
In the Create governance phase, a project request is captured and users begin to develop a detailed business case to support the idea.
In the Select governance phase, all competing projects within the portfolio are prioritized and optimized against budgetary constraints. This results in selecting a project portfolio that best aligns with the organization’s strategic priorities.
In the Plan governance phase, the project managers begin to develop the detailed project plans for each of the selected projects before the project is approved and given a baseline.
In the Manage governance phase, the project is tracked to a successful conclusion.
The bottom half of the diagram shows the products within the EPM Solution (with particular reference to Office Project Portfolio Server 2007). Notice that in this example the products have been deployed to align with the different governance phases:
Office Project Portfolio Server 2007 includes three modules (Portfolio Builder, Portfolio Optimizer, and Portfolio Dashboard).
The Portfolio Builder aligns with the Create phase. The Builder’s primary role is to capture the project request and develop high-level or detailed business cases in accordance with defined governance workflows.
The Portfolio Optimizer aligns with the Select phase. The Optimizer’s primary role is to prioritize, optimize, and select project portfolios that best align with the organization’s business strategy.
The Portfolio Dashboard straddles the Plan and Manage phases. The Dashboard provides executives with visibility and control across their project portfolios.
In this deployment example, Office Project Portfolio Server 2007 is used to capture and select project requests. The project is then sent to Project Server to be managed to a successful conclusion.
(Note: Project requests can also be captured in Project Web Access and sent to the Portfolio Optimizer module for prioritization and selection.)
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

12. Capture Project Requests/Ideas
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Portfolio Builder Create: Capture project requests in an enterprise repository
Capture all project requests within a central repository, and define business-case templates to standardize the data collection across the organization 1
Predefined workflows help ensure the projects are subject to the appropriate governance controls throughout their life cycle (from proposal to postimplementation) 2
Capture All Project, Program, and Application Investments Centrally
With Office Project Portfolio Server 2007 you can capture all projects and programs in the Portfolio Builder module, providing you with a holistic view of all of your investment portfolios in one central system of record. The flexible scorecard in Portfolio Builder enables you to quickly slice and dice the investments across portfolios to create intuitive and informative reports (for example, by line of business, program, or portfolio).
Automate Governance Processes Across the Organization
Office Project Portfolio Server 2007 includes an intuitive workflow designer that enables administrators to define governance phases and multiple workflows, helping to ensure that projects are subject to appropriate controls throughout their entire life cycle. As shown in this slide, each workflow is composed of a series of life cycle steps (such as Propose Idea, Initial Review, Complete Request, Request Review, Portfolio Selection, and Selected) which in turn are mapped to governance phases. The governance phases are used as common denominators to aggregate and report on projects across various workflows.
The phases and workflows establish a blueprint for your organization’s governance framework and help ensure all projects complete the necessary deliverables and receive managerial sign-off before moving to the next life cycle step. This audit functionality keeps stakeholders aware and accountable as projects move from business case creation to consideration to implementation.
Capture Project Requests/Ideas
Governance Workflow
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

13. Strategic Impact Assessment
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Portfolio Builder Create: Business case development
Build a detailed business case for each project request in accordance with the governance workflow 3a 3b 3c
General Information
Cost Estimates
Resource Estimates 3d
Use Templates to Streamline the Collection of Data and Metrics
Standardize and streamline the collection of data across the organization by defining templates and forms for each investment type (for example, project and program) using the Portfolio Builder module of Office Project Portfolio Server The following are some examples of templates that can be created to capture critical project data:
Project Request Form: Complete a project request form to capture the high-level information for each new request, such as business description, start and end dates, and sponsors.
Business Case Templates: Develop a detailed business case for each project request in accordance with the governance workflow including:
General Project Information: Capture general project information.
Cost Estimate: Capture detailed cost estimates.
Resource Estimates: Capture detailed resource estimates at the skill level.
Benefits Estimates: Capture both financial and non-financial benefit estimates.
Strategic Impact: Assess how each project supports your organization’s business strategy.
Risk Assessment Questionnaire: Derive a risk score for each project through a configurable risk questionnaire.
Schedule Management: Capture the phases and key milestones.
Issues and Risk Management: Log all issues and risks throughout the project’s life cycle. 3e 3f
Benefit Estimates
Strategic Impact Assessment
Risk Assessment
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

14. Prioritize Business Drivers
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Portfolio Optimizer Select: Portfolio prioritization
Assess the impact of each project request against the prioritized business drivers
Use proven techniques to define and prioritize business drivers
Business Drivers 4 5
Projects
Prioritize Business Drivers
Impact Assessment
Derive a priority score to evaluate each project request (that is, strategic value, financial value, risk)
Analyze the project portfolio before attempting to make funding decisions 6
Portfolio Optimizer for PPM
The Portfolio Optimizer helps organizations prioritize business strategy, projects, and programs:
Business Strategy Prioritization:
One of the most critical tasks in the portfolio management process is to define and prioritize the organization’s business strategy. The Office Project Portfolio Server 2007 Portfolio Optimizer module includes the pair-wise comparison matrix used to help executives objectively prioritize business strategy for the upcoming planning horizon.
Project and Program Prioritization:
With potentially hundreds of projects, programs, and applications competing for the same limited budget and resources, formulating common scoring criteria is essential to effectively prioritizing and evaluating the competing investment proposals.
Make use of best practice techniques to automatically derive prioritization to objectively assess projects, programs, and applications.
Project and Programs—Best practice prioritization scores include:
Financial Value: Calculate a project’s financial value (ROI, net present value (NPV), internal rate of return (IRR)) based on the cost and benefit estimates captured in each business case.
Strategic Value: Objectively derive a strategic value score for each project in Portfolio Optimizer based on the project’s impact on the business strategy.
Risk Assessment: Calculate a risk score for each project derived from the risk assessment questionnaire. 7
Prioritize Projects
Investment Maps
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

15. Efficient Frontier Modeling Business Alignment Analysis
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Portfolio Optimizer Select: Portfolio optimization and advanced analytics
Benchmark the selected portfolio against the Efficient Frontier
Use sophisticated optimization algorithms to maximize the portfolio’s strategic value under varying budget constraints (that is, cost and resources) 9 8
Efficient Frontier Modeling
Calculate and communicate the selected portfolio’s alignment with the organization’s strategic priorities 10
Portfolio Optimizer for PPM
The Portfolio Optimizer helps organizations select the project and program requests that best align with the organization’s business strategy:
Run what-if optimization scenarios under varying budgetary and business constraints.
Utilize advanced portfolio analytical techniques to refine the selected portfolio. Advanced Portfolio Analytical techniques include:
Break Portfolio Constraints with Efficient Frontier Analysis
Efficient Frontier modeling enables analysts to visually identify the project or program portfolio that will deliver the maximum strategic value under varying constraint thresholds (such as a $5 million budget or a $10 million budget). Each point on the Efficient Frontier represents a different bundle of projects (or programs) from the proposed portfolio. The Efficient Frontier represents the best value. For example, in the diagram you can see that with a $34 million budget you can achieve approximately 72 percent of the portfolio’s total potential strategic value, although the current portfolio solution is only achieving 60 percent. Organizations can use the Efficient Frontier in two ways:
Identify the point of diminishing return: Find the point where the curve begins to flatten, indicating you are paying a lot more to achieve a disproportionate amount of strategic value.
Benchmark the selected portfolio against the Efficient Frontier: Compare the position of the selected portfolio in relation to the Efficient Frontier.
In reality, due to varying constraints (for example, interdependencies, project alternatives, mandatory investments, and resource constraints), most portfolios are sub-optimal and fall beneath the Efficient Frontier. Analysts can use Portfolio Optimizer to identify and break these constraints, which will move the portfolio closer toward the Efficient Frontier and increase the total strategic value from the portfolio under the same budgetary constraints.
Dynamically Assess Your Portfolio’s Business Alignment
The Portfolio Optimizer Business Alignment Framework methodology provides a rational approach for selecting project and program portfolios that best align with business strategy. Executives can dynamically assess the correlation between the business driver priorities and the investment from the selected project or program portfolio. This technique helps you quickly see if you are over- or underinvesting in each of the prioritized business drivers.
‘What If’ Analysis
Business Alignment Analysis
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

16. 5/27/2018 9:31 PM
Portfolio Dashboard Manage: Track and measure the portfolio performance
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. 11 12
Project Status Report
Portfolio Scorecard
Use intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization.
With the Portfolio Dashboard module of Office Project Portfolio Server 2007, you can measure and track projects, programs, and portfolios throughout their life cycle, giving you the visibility to proactively identify potential issues, make decisions, and help ensure that your portfolios deliver maximum business value.
Track Investments with Personalized Scorecards and Status Reports
With the reporting and monitoring functionality in Office Project Portfolio Server 2007, you can create and view reports on your investments at any time.
My Scorecard: Analysts, managers, and executives can create personalized scorecards to track portfolio investments, and drill down from the organization level to view project and program level status reports.
Status Reports: The snapshot reporting mechanism enables project, program, and application managers to generate periodic status reports to measure the overall health of each investment throughout their life cycle.
Cost Management: Maintain financial controls by assessing budget versus actual for project cost.
Resource Management: Evaluate staffing and resource utilization.
Change Request: Raise change requests for approval and automatically update the original budget to keep an accurate baseline.
Flexible Reporting Framework: Use the Office Project Portfolio Server 2007 report generators to customize and publish report templates so you can standardize and streamline the reporting process across the organization. 13
Portfolio Reporting
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

17. 5/27/2018 9:31 PM
Gaining Control Portfolio optimization led to gains of $137mm EBIT, 24% strategic value for same budget #
Portfolio
Strategic Value
Total EBIT
Original Selection
51%
$389 M
Optimal Selection
82%
$564 M
Final Selection (includes mandated projects)
75%
$526 M 1 2 3 2 3
The above diagrams show the benefits of deploying Office Project Portfolio Server 2007.
Four years ago a very large financial services company kicked off a pilot to evaluate whether using Office Project Portfolio Server (known back then as UMT Portfolio Manager) would help them to maximize the amount of strategic value and financial value gained from their project portfolios.
This organization had already selected a portfolio of projects for the upcoming planning period.
Using the tool’s Force-In and Force-Out functionality, it was very easy to mirror the portfolio they had selected for the upcoming planning period. This portfolio is represented by point 1 (the Original Selection).
This Portfolio (the Original Selection) would have returned 51% Strategic Value and $389 million of EBIT (note: they were measuring Financial Value in EBIT).
Using the Efficient Frontier technique and applying the relevant constraints (such as 150 million person hours), they quickly determined the best they could achieve (the point they hit the Efficient Frontier). This Portfolio is represented by point 2 (Optimal Selection) and resulted in 82% Strategic Value and $564 million of EBIT.
After running various what-if analysis optimization scenarios, they were able to identify a new project portfolio to be implemented (Point 3 – Final Selection). This portfolio resulted in 75% Strategic Value and $526 million of EBIT.
When you compare their Original Selection (Point 1) with their Final Selection (Point 3) you can see they made a flat gain of 24% Strategic Value and $137 million of EBIT. 1
Strategic Value Gain = 24%
EBIT Increase = $137 MM
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

18. Application Portfolio Management Microsoft Office Project Portfolio Server 2007

19. Rationalize and Manage Your Application Portfolio
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Rationalize and Manage Your Application Portfolio
Project Portfolio Server 2007 includes best-practice portfolio analytical techniques to help organizations rationalize and manage application portfolios
Business Strategy
IT Strategy
Application
Valuation
Portfolio
Selection
Application
Redundancy
Assessment
Application
Transformation
Decisions
New Project Requests
Project
Capture &
Valuation
Portfolio
Planning
Application
Portfolio
Management
Project
Portfolio
Management
The above diagram shows the synergies between Project Portfolio Management and Application Portfolio Management.
Application Portfolio Management methodologies help organizations create an inventory of all legacy applications, rationalize the application portfolio to remove redundancies, and effectively manage the application portfolio.
Any changes to the application portfolio (such as enhancing or sunsetting an application) result in a transformation project.
The transformation projects are then managed via your organization’s Project Portfolio Management governance processes (such as Create, Select, Plan, and Manage).
After successful completion of the project (for example, building a new application), the application inventory should be automatically updated (that is, the new application should be added to the inventory).
Application
Inventory
Update
Portfolio
Execution
New / Enhanced Applications
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

20. Application Rationalization: Process and Architecture
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Application Rationalization: Process and Architecture
Gov Phases
Create
Analyze
Manage
Derive Assessment Attributes
Manage Application 1
Business Importance 1
Status Reporting
Data Collection 2
Architectural Fit 2
Cost Management 1
General Information 3
Risk 3
Document Management
APM
Life Cycle Steps 2
TCO Estimates 4
Operational Performance 4
Enhancement Requests 3
Architectural Fit Assessment 4
Business Process Assessment
Portfolio Analysis
Portfolio Tracking 5
Risk Assessment 1
Transformation Road Map 6
Operational Performance
Assessment 1
Redundancy Assessment 2
Charting Analysis 2
Cost Management
Manage Transformation
Projects via PPM
Governance Processes
Finalize Transformation
Decisions
Microsoft EPM Solution
Portfolio Builder
Portfolio Optimizer
Portfolio Dashboard
The Office Project Portfolio Server 2007 helps organizations to manage their application portfolios. In the diagram above you can see the following governance phases and how the modules (of Office Project Portfolio Server 2007) align with each Governance Phase:
Create (supported by the Portfolio Builder): The Portfolio Builder allows organizations to create an inventory and standardize the data collection for all legacy applications.
Analyze (supported by the Portfolio Optimizer): The Portfolio Optimizer helps organizations to derive assessment attributes, evaluate and finalize transformation decisions for the application portfolio.
Manage (supported by the Portfolio Builder): Helps ensure organizations can track the ongoing performance of their application portfolios
(Note: Application transformation decisions (such as Maintain, Enhance, or Retire) result in project requests. These project requests are routed through an organization’s PPM governance processes (supported by Office Project Server 2007).
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

21. Portfolio Builder Create: Build an application inventory
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Portfolio Builder Create: Build an application inventory
Consolidate all applications in an enterprise repository, and standardize and streamline the collection of key metrics across the organization
TCO Estimates
General Information
Create Application Inventory
Use Templates to Streamline the Collection of Data and Metrics
Application Inventory Templates: Define templates to capture the essential metrics necessary to gain visibility into your application portfolio. For example:
General Application Information: Capture general attributes about the application.
Cost Estimates: Capture application costs, and calculate annual cost of ownership (ACO) and total cost of ownership (TCO).
Strategic Impact: Assess how each application supports your organization’s business strategy.
Architectural Fit: Assess how each application supports your organization’s enterprise architecture standards and strategy.
Business Process: Evaluate and keep a record of the business processes that each application supports.
Risk Assessment: Evaluate an application’s risk through a configurable risk questionnaire.
Operational Performance: Evaluate an application’s performance through a configurable operational performance questionnaire.
Risk and Operational Performance Surveys
Architectural Fit Assessment
Business Process Impact
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

22. Portfolio Optimizer Two-step prioritization: Architectural fit score
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Portfolio Optimizer Two-step prioritization: Architectural fit score
Step 1
Use proven techniques to define and prioritize architectural strategy/drivers
Architecture Driver Pair-wise Matrix
Architecture Driver Priorities
Understand the extent each application affects/supports the architectural strategy, and use this assessment to automatically derive an architectural fit score for each application
Step 2
The architectural fit of an application is computed in Office Project Portfolio Server 2007 using a two-step prioritization process. This prioritization technique uses the pair-wise comparison matrix to prioritize the enterprise architecture drivers / standards, then uses the impact matrix to assess how each application supports the enterprise architecture drivers / standards; resulting in an architectural fit score.
Architecture Drivers
Applications
L - Priority - H
Architectural Fit Impact Assessment
Application Architectural Fit Scores
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

23. 5/27/2018 9:31 PM
Portfolio Optimizer Three-step prioritization: Business importance score
Step 1
Use proven techniques to objectively prioritize the organization’s business strategy
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
Step 2
The business importance of an application is computed in Office Project Portfolio Server 2007 using a three-step prioritization process. This prioritization technique uses the pair-wise comparison matrix to prioritize business drivers, then uses two impact matrices to first assess each business process’s contribution to the success of each business driver, and second to assess the level that each application supports each business process. This three-step process results in a business importance score for each application in the portfolio. Application contributions to business processes are best rated as a percentage of the process that is automated by the application. The sum of application contributions to one process must be equal to or less than 100 percent.
Business Drivers
Business Processes
L - Priority - H
Business Process Impact Assessment
Business Process Priorities
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

24. Application Impact Assessment Application Business Importance Score
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Portfolio Optimizer Three-step prioritization: Business importance score (Cont’d)
Derive a business importance score for each application by assessing the extent each application supports/automates each business process
Step 3
Business Processes
Applications
L - Priority - H
Application Impact Assessment
Application Business Importance Score
See notes from previous slide
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

25. Portfolio Reporting Identify redundancies across the application portfolio
Business Process Value vs. Cost Comparison
Identify Redundancies in the Portfolio
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?

26. 5/27/2018 9:31 PM
Portfolio Optimizer Evaluate the application portfolio and finalize transformation decisions
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)
Use the flexible charting engine to evaluate the application portfolio from multiple dimensions to finalize transformation decisions.
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

27. Application Status Report
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Portfolio Dashboard Manage: Track and measure the portfolio performance
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
Application Status Report
Use intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization.
With the Portfolio Dashboard module of Office Project Portfolio Server 2007, you can measure and track applications throughout their life cycle, giving you the visibility to proactively identify potential issues, make decisions, and help ensure that your portfolios deliver maximum business value.
Track Investments with Personalized Scorecards and Status Reports
With the reporting and monitoring functionality in Office Project Portfolio Server 2007, you can create and view reports on your application portfolio at any time.
My Scorecard: Analysts, managers, and executives can create personalized scorecards to track portfolio investments, and drill down from the organization level to view application-level status reports.
Status Reports: The snapshot reporting mechanism enables application managers to generate periodic status reports to measure the overall health of each investment throughout their life cycle.
Cost Management: Estimate TCO and track costs for each application in the portfolio.
Flexible Reporting Framework: Use the Office Project Portfolio Server 2007 report generators to customize and publish report templates so you can standardize and streamline the reporting process across the organization.
Portfolio Reporting
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

28. 5/27/2018 9:31 PM
This presentation is for informational purposes only.
MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS PRESENTATION.
© 2006 Microsoft Corporation. All rights reserved.
© 2004 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.