69. 7. Managing Applications Portfolio
Key questions for management
Key demand issues
Key supply issues
Generic management strategies
Evolution of management strategies
Portfolio management strategies
Portfolio management principles
Portfolio management styles
Portfolio management over time

70. Key Questions for Management
Strategic applications
High potential applications
Why do?
Types of strategic advantage
What to do?
Business activities to create or remove
How to do?
Best ways to achieve goals
Why do?
Not clear
What to do?
Not certain
How to do?
Not yet known
Key operational applications
Support applications
Why do?
Types of process effectiveness
What to do?
Business activities to improve
How to do?
Best ways to achieve goals
Why do?
Types of process efficiency
What to do?
Business activities to automate
How to do?
Best ways to achieve goals

71. Key Demand Issues Strategic applications
Market requirement or competitive pressure
Business objective
Obtain advantage
High potential applications
New business idea or technology opportunity
Individual initiative
Demonstrate value
Key operational applications
Improve activity effectiveness
Integration effort
Avoid disadvantage
Support applications
Improve activity efficiency
Cost reduction
Legal requirement

72. Key Supply Issues Strategic applications
Rapid applications development
Flexible applications
Link to business initiative
High potential applications
Rapid prototype evaluation
Avoid wasting resources
Identify way to proceed
Key operational applications
Quality applications development
Balance costs with benefits
Evaluate options
Support applications
Low cost applications development
Careful cost control
Compromise needs

73. Generic Management Strategies
Strategy
Centrally planned
Leading edge
Management
rationale
Central coordination of all requirements will produce better decisions
Technology can create business advantages and risks are worth taking
Organizational
requirements
Knowledgeable top management
Integrated IS and business planning processes
Commitment of resources and funds
Innovative management and strong technical skills
Role of IS
Provide services to match business demands
Push forward boundaries of technology usage
Role of managers
and users
Identify applications to meet business needs
Use technology and identify the advantages

74. Generic Management Strategies
Strategy
Free market
Monopoly
Management
rationale
Market makes the best decisions and users are responsible for business results
Information is a corporate good and an integrated resource for users to employ
Organizational
requirements
Knowledgeable and accountable users
Willingness to duplicate efforts with lose budget control
Acceptance of policy on single sourcing
Good forecasting of resource usage
Role of IS
Profit oriented to achieve a return on resources
Satisfy requirements of users and non-directive in IS usage
Role of managers
and users
Identify, source, and control applications development
Understand business needs and present them to obtain resources

75. Generic Management Strategies
Strategy
Scarce resource
Management
rationale
Information is a limited resource and its development must be clearly justified
Organizational
requirements
Tight budget control of all IS expenses
Policies to control and justify IS usage
Role of IS
Control costs tightly to optimize use of limited resources
Role of managers
and users
Identify and justify applications using costs and benefits

76. Evolution of Management Strategies
Increasing
IS usage
Free market
Leading edge
Monopoly
Centrally planned
Scarce resource
or free market
DP era
MIS era
SIS era
Time

77. Portfolio Management Strategies
Demand
Strategic
applications
Centrally planned
High potential
applications
Leading edge
Free market
Key operational
applications
Monopoly
Support
applications
Scarce resource
Free market
Supply
Centralized
Decentralized

78. Portfolio Management Principles
Strategic applications
(stars)
Continuous innovation
Vertical integration
High value added
High potential applications
(wild cats)
Process development
Minimal integration
Cost control
Key operational applications
(cash cows)
Defensive innovation
Effective resource usage
High quality
Support applications
(dogs)
Divest or rationalize
Efficient resource usage
Sustained quality

79. Portfolio Management Styles
Strategic applications
(developer)
Seeks organizational goals
Accommodates risks
High potential applications
(entrepreneur)
Seeks personal goals
Takes risks
Key operational applications
(controller)
Seeks lasting quality solutions
Reduces risks
Support applications
(caretaker)
Seeks immediate efficient solutions
Avoids risks

80. Portfolio Management Over Time
Strategic applications
High potential applications
Management ownership, IS involvement, and project management
Individual ownership and freedom
Fully integrated
with other
applications for
effectiveness
Re-engineer for
long-term use
Evaluate lower
cost options to meet core needs
Re-evaluate costs
and benefits, and
return to
standards
Key operational applications
Support applications