applying portfolio management principles to information technology projects

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Applying Portfolio Management Principles to Information Technology Projects

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Applying Portfolio Management Principles to Information Technology Projects. Portfolio Management. Multiple Projects and / or Programs aligned to meet the strategic objectives of the organization. Information Management and Information Technology (IM-IT). No More IM-IT Projects!. - PowerPoint PPT Presentation

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Page 1: Applying  Portfolio Management Principles   to  Information Technology Projects

Applying Portfolio Management Principles

to Information Technology Projects

Page 2: 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

Page 3: Applying  Portfolio Management Principles   to  Information Technology Projects

Information Management and

Information Technology (IM-IT)

No More IM-IT Projects!

Just Business Projects

with IM-IT components

Page 4: Applying  Portfolio Management Principles   to  Information Technology Projects

4

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

Page 5: Applying  Portfolio Management Principles   to  Information Technology Projects

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

Page 6: Applying  Portfolio Management Principles   to  Information Technology Projects

Dramatic Differences by Size78%

16%9%

74%

65%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

On Time & Budget Functions Delivered

Small MediumLarge

Page 7: Applying  Portfolio Management Principles   to  Information Technology Projects

Projects without Portfolio Management

7

StrategicObjectives

Page 8: Applying  Portfolio Management Principles   to  Information Technology Projects

With Centralized Control

8

Mandate

Page 9: Applying  Portfolio Management Principles   to  Information Technology Projects

With Portfolio Management

9

Vision

Page 10: Applying  Portfolio Management Principles   to  Information Technology Projects

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!

Page 11: Applying  Portfolio Management Principles   to  Information Technology Projects

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

Page 12: Applying  Portfolio Management Principles   to  Information Technology Projects

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

Page 13: Applying  Portfolio Management Principles   to  Information Technology Projects

Three Enterprise Functions1. 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

Page 14: Applying  Portfolio Management Principles   to  Information Technology Projects

Application

Customer Mgmt

ProductDefinition

Business Trans

Integration Middleware

Application

Customer Mgmt

ProductDefinition

Business Trans

Integration Middleware

Application

Customer Mgmt

ProductDefinition

Business Trans

Integration Middleware

Application

Customer Mgmt

ProductDefinition

Business Trans

Integration Middleware

Application

Customer Mgmt

ProductDefinition

Business Trans

Integration Middleware

Application

Customer Mgmt

ProductDefinition

Business Trans

Integration Middleware

One Application at a Time

Page 15: Applying  Portfolio Management Principles   to  Information Technology Projects

ApplicationCustomer Mgmt

ProductDefinition

Business TransIntegration Middleware

Application

Customer Mgmt

ProductDefinition

Business Trans

Integration Middleware

Application

Customer

Mgmt

Product

Definition

Business

Trans

Integration Middleware

ApplicationCustomer

Mgmt

ProductDefinition

Business TransIntegration Middleware

ApplicationCustomer Mgmt

ProductDefinition

Business TransIntegration Middleware

Application

Customer

Mgmt

Product

DefinitionBusiness

Trans

Integration Middleware

Enterprise Complexity

Page 16: Applying  Portfolio Management Principles   to  Information Technology Projects

Enterprise Chaos

“70% of all code written today consists ofinterfaces, protocols and other procedures to

establish linkages among various systems” - IBM

Page 17: Applying  Portfolio Management Principles   to  Information Technology Projects

Customer MgmtApplication

Product DefinitionsBusiness Transaction

Business Application

Enterprise Application Architecture

1 1 1

Start the enterprise migration towards simplicity

Business Application

Business Application

Business Application

Business Application

Business Application

Corporate Data Model

Infrastructure, Network, Corporate Security, Imaging Systems, etc

Page 18: Applying  Portfolio Management Principles   to  Information Technology Projects

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

Page 19: Applying  Portfolio Management Principles   to  Information Technology Projects

DriverImprovementProgram

TrafficSafetyWorkshops

MedicalPrograms

GraduatedDriverLicence

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

Page 20: Applying  Portfolio Management Principles   to  Information Technology Projects

PerformClose-out

Issue SKLicence

ProvideIdentification

New Driver<= 16?

No

Perform IRECheck

Suspended?

Drive, Live,in SasK

Monitor DriverPerformance

ActionReq’d?

Issue Licence

DetermineAction Action

Set upCourse

EnrollCustomer

Monitor forCompletion

Completion?

Yes

No

Course/Training

Suspension

No

Yes

Generic Driver Life Cycle

No

Yes

TransactionHistory

96 % of the population are good drivers4 % have a plethora of issues

Page 21: Applying  Portfolio Management Principles   to  Information Technology Projects

DriverImprovementProgram

TrafficSafetyWorkshops

MedicalPrograms

GraduatedDriverLicence

Departmental Focus Remains

CustomRequirements

CustomRequirements

CustomRequirements

CustomRequirements

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

Page 22: Applying  Portfolio Management Principles   to  Information Technology Projects

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

Page 23: Applying  Portfolio Management Principles   to  Information Technology Projects

23

Customer MgmtApplication

Product DefinitionsBusiness Transaction

4 Justice projects in flight

Enterprise Application Architecture

1 1 1

Start the enterprise migration towards simplicity

3 other Justice Applications

1000 + ApplicationsEducation

Social Services

100 +Applications

Corporate Data Model

Infrastructure, Network, Corporate Security, Imaging Systems, etc