it portfolio management using enterprise architecture and itil® service strategy

© 2012 NUS unless otherwise stated. PortfolioMgt-EA-ITIL.ppt

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IT Portfolio Management using

Enterprise Architecture

and ITIL® Service Strategy

adapted from presentation given at

PMI Singapore Regional Symposium

4 Oct 2012

1

Please see Acknowledgements & Notices in second last slide

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My Organisation

Institute of Systems Science

www.iss.nus.edu.sg

Part of National University of Singapore

Support national IT competency development needs

Faculty of practitioners from industry with average of more that 15 years experience each

Caters to working IT professionals ■ Post-Graduate Programmes

■ Executive Programmes

• IT Management

• Software Engineering

■ Consulting

■ Industry Research

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About Myself

3

ITIL Expert, TOGAF 9 Enterprise Architect,

CITPM (Senior), COMIT, CGEIT,

Chartered IT Professional

20 years of IT management experience

Portfolio Management

Enterprise Architecture and Planning

IT Operations Management

Application Development Management

Process Improvement

Consultancy for private and public sector

CMMI

Enterprise Architecture

Goh Boon Nam

Chief, New Initiatives

Institute of Systems Science



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PORTFOLIO MANAGEMENT

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Portfolio vs Programme/Project Mgt

What is the difference between portfolio

management and programme/project

management?

Is it possible to have great programme/project

execution but poor portfolio management?

Anyone heard of lemmings?

5


http://en.wikipedia.org/wiki/File:Tunturisopuli_Lemmus_Lemmus.jpg


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Great Project/Programme Execution

Poor Portfolio Management Lemmings – animals claimed to commit mass suicide by jumping down cliffs

Project (individual jump) – well done

Programme (group jump) – well done

Portfolio – Are the right programmes / projects being chosen for implementation?

[Is cliff-jump the right thing to get lemmings to do?]

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Portfolio vs Programme/Project Mgt

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Le

ve

l o

f W

ork

Strategic Pre-Project Project Post-Project

Programme

Management

Tactical

Programme

Management

Project

Management Project

Management


Select right things

to do

Do things well

Ensure right things get done



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Portfolio

■ is a term that refers to an organization's group of programmes/projects


■ the process in which the organisation’s programmes/projects are selected and managed.

The portfolio of programmes/projects is strategically selected to advance the corporation's organisational goals.

8

Programme

ManagementProgramme

Management

Project

ManagementProject

Management




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Other Differences - Portfolio Mgt vs

Programme/Project Mgt Strategic level

Whole organisation perspective

Long time horizon for each portfolio plan ■ Say, 3 to 5 years for IT portfolio

■ Minor review & adjustments during the planned period to cater to • Changes in the organisation

• External changes

Continuous journey ■ Major review and update of portfolio plan every few years

• Before current plan expires

• Earlier if there is major change in environment

A Portfolio Plan can be said to be a Master Plan

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10

vs

• Would you choose the same IT projects to carry out

for both of these companies?

• What projects would you select for each and how

did your arrive at that answer?



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IT Portfolio Management

Use IT Portfolio Management best practises

to choose the right IT projects/services

■ Enterprise Architecture eg. TOGAF method

■ ITIL Service Strategy

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http://www.itil-officialsite.com/home/home.aspx


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ENTERPRISE ARCHITECTURE

- TOGAF® METHOD

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Who are using Enterprise Architecture?

Public Sector Example

■ Singapore Government

• “The (EA) programme aims to establish a federated view of all government agencies' enterprise architectures to optimise government ICT assets for greater cost savings or avoidance.”

Private Organisation Examples

How does EA help them?

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Singapore Government EA

Ministry of Education

■ Before EA

• Uncoordinated IT expenditures

• Siloed redundant systems

• Limited IT efficiencies

• Cumbersome systems that prevented agility

■ EA helped

• Reduced number of systems by 44%

• Saved over $25 million

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Source: http://www.infoworld.com/print/173372



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Proctor & Gamble

■ Before recent launch of EA

• Business processes not end-to-end digital

• Lack of standardisation

• Lack of real-time information

■ EA helped

• Introduce “Going Digital” programme

• Increased business process standardisation by 10%

• Increased end-to-end automation by 10%

• Increased real-time information by 300%

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Source: http://www.infoworld.com/print/173372



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EA Definition

Gartner

■ Enterprise architecture (EA) is the process of translating business vision and strategy into effective enterprise change by creating, communicating and improving the key requirements, principles and models that describe the enterprise's future state and enable its evolution. (i.e. choosing right things to do)

■ Enterprise architects compose holistic solutions that address the business challenges of the enterprise and support the governance needed to implement them.

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EA is NOT Solution Architecture

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Source : http://www.andyblumenthal.com/2007/08/enterprise-architecture-is-not.html



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One EA Method – TOGAF ADM

The Open Group

■ Vendor and technology-neutral industry consortium

■ Most famous for being the standards body for UNIX and

developer of TOGAF

TOGAF

■ The Open Group Architecture Framework

■ A detailed method and a set of supporting tools for

developing an enterprise architecture

■ TOGAF ADM

■ TOGAF Architecture Development Method

■ A method for developing and managing the lifecycle of an

enterprise architecture, and forms the core of TOGAF

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TOGAF Architecture Development Method

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Business

Vision &

Drivers

Enhanced

Business

Capabilities

Source: http://pubs.opengroup.org/

architecture/togaf9-doc/arch/ © The Open Group

TOGAF

ADM


Branch_of_the_future_1.wmv


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Prelim and Vision

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http://www.youtube.com/watch?v=obcS6BalVh0


http://www.youtube.com/watch?v=obcS6BalVh0


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21

Business

Vision &

Drivers

Enhanced

Business

Capabilities



TOGAF

ADM




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Enterprise Architecture – 4 Domains

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TechnologyArchitecture

Hardware, software, network

Application Architecture

Services

DataArchitecture

Data, information

Business Architecture

Business processes, organization, people

Business Vision & Drivers



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Business Architecture – Example (1)



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Business Architecture – Example (2)

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Source: http://portal.hud.gov/hudportal/documents/

huddoc?id=DOC_15169.pdf

Duplication

in Functions

Streamlined

Functions

New

Functions

Eg. Foreclosure

Avoidance



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25




Services

DataArchitecture

Data, information






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Application Architecture – Current

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Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf

Wasteful

Redundancy

and Siloed

Applications

duplicate

applications

for same

process

applications

cover only a

process & not

whole function



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27

Application Architecture – Target

Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf

Streamlined

Portfolio

of

Applications



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Services

DataArchitecture

Data, information






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Data Architecture - Target

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Streamlined

Portfolio of

Data Sources

-Consistent data

- “Single” source

of truth




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Services

DataArchitecture

Data, information






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Technology Architecture – Current & Target

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• Target Future (TF)

• Pilot (P)

• Target Current (TC)

• Maintain (M)

• Obsolete (O)

HUD TRM CATEGORY Parent Name Product

Version HUD TRM

Status

Application Server Software SUN JAVA SYSTEM APPLICATION

SERVER 9 TF

Application Server Software SUNONE APPLICATION SERVER 8.2 TC

Application Server Software SUNONE APPLICATION SERVER 7 M

Application Server Software SUNONE APPLICATION SERVER 6.5 O

Asset Management Tools OPEN VIEW ASSET CENTER 5 TF

Asset Management Tools OPEN VIEW ASSET CENTER 2 TC

Business Intelligence MICROSTRATEGY 8.X TC

Business Intelligence CRYSTAL REPORTS 8.5 M

Business Intelligence CRYSTAL REPORTS 8 O

etc..




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Technology Architecture – Target

32


Streamlined

Technology

Architecture

(example)



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33




Services

DataArchitecture

Data, information






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Creating Target Enterprise Architecture

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Services

DataArchitecture

Data, information






Services

DataArchitecture

Data, information



Current Target

EA

Method



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35

Business

Vision &

Drivers

Enhanced

Business

Capabilities



TOGAF

ADM




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Opportunities and Solutions

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Information Architecture

Current

.......

Target

........

Gaps

.......

Opportunities ........... ...........


Current

.......

Target

........

Gaps

.......

Opportunities ........... ...........

Technology Architecture

Current

.......

Target

........

Gaps

.......

Opportunities ........... ...........


Portfolio of IT projects (examples)

1. Upgrade systems, network infrastructure, VPN

2. Increase server capacities

3. Implement enterprise data warehouse & BI

4. Implement CRM solutions

5. Implement Knowledge management

6. Implement B2B partner / customer portal

7. Standardize all application servers

8. Implement security controls on all financial applications

9. Implement workflow / business rules engines

10. Implement mobile sales force

11. etc.Each opportunity can

be an IT initiative



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The Business Value Assessment

Technique

37



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38

Business

Vision &

Drivers

Enhanced

Business

Capabilities



TOGAF

ADM




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Migration Planning (1)

39




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Migration Planning (2) Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13840.pdf



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41

Business

Vision &

Drivers

Enhanced

Business

Capabilities



TOGAF

ADM




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Source: http://portal.hud.gov/hudportal/documents/huddoc?id=eatpv6.pdf

Implementation Governance (1)

• Governance Process

includes oversight of

• Business Case

• Design

• Acquisition

• Post-Implementation

Review



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Business

Vision &

Drivers

Enhanced

Business

Capabilities



TOGAF

ADM




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Architecture Change Management

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Monitor for Triggers to a new EA cycle:


http://www.lunarboy.com/blog/post/the-end-of-twitter/


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45

Business

Vision &

Drivers

Enhanced

Business

Capabilities



TOGAF

ADM




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EA & IT Portfolio Management

For an internal/shared IT service provider

■ EA helps create a Target Architecture/Portfolio aligned to the enterprise’s needs

For an external IT service provider

■ There are advantages to plan from the customer’s perspective to offer them a Target Architecture/ Portfolio aligned to the customer’s needs

EA has a detailed and mature (v9) process to help

■ Produce the Portfolio / Target Architecture

■ Govern the implementation of the Portfolio

EA-trained professionals already exists in many organisations

EA training and international certification is available in Singapore

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EA & IT Portfolio Management

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Number of TOGAF Certified professionals:

15,000 +

globally

900+

in

Singapore



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ITIL® SERVICE STRATEGY

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What is ITIL?

Originally stood for IT Infrastructure Library ■ Books on IT Management Best Practises developed by UK

Government with the help of industry practitioners

■ Originally for IT Infrastructure but now covering IT Services in general

Complements IT project mgt & IT development management

Covers the IT service management aspect required for the full lifecycle management of IT Services (before, during and after completion of a project) – ■ 26 management processes

Internationally recognised and widely adopted ■ Individual professional ITIL certifications/qualifications

■ Organisational certification through related ISO20000

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ITIL

50

Select right

things to do Do things well

Strategy Design Transition Operation Improvement

© Crown Copyright 2011. Reproduced under licence from the Cabinet Office


http://www.amazon.com/gp/product/images/0113313047/ref=dp_image_z_0?ie=UTF8&n=283155&s=books


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Service knowledge management system

Service portfolio

Service

pipeline

Service

catalogue

Retired services

Customer/support

team viewablesection of the

service portfolio

(the servicecatalogue, with

selected fieldsviewable)

Serv

ice li

fecycle

Service status

Requirements

Definition

Analysis

Approved

Chartered

Design

Development

Build

Test

Release

Operational/live

Retiring

Retired

ITIL ® Service Portfolio

51

Service Strategy

helps to plan and govern

the implementation of

Service Portfolio e.g.:

New IT services or enhancements

to add to the Service Pipeline

IT services to be retired

Existing

IT services




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ITIL ® Service Portfolio Management

Initiate Portfolio Review

Portfolio Review

■ “Define”

• E.g. External service provider definition of which services to provide

■ “Analyse”

■ “Approve”

■ “Charter” / “Retire”

( “Strategy Execution” - part of another ITIL® process known as Strategy Management process )

Refresh Portfolio

52

© Crown Copyright 2011



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Service Portfolio Management - Define

“Step 1 – Define the market and identify customers

Step 2 – Understand the customer

Step 3 – Quantify the outcomes

Step 4 – Classify and visualize the service

Step 5 – Understand the opportunities (market spaces)

Step 6 – Define services based on outcomes

Step 7 – Service models

Step 8 – Define service units and packages”

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Market / Customers

■ Fixed

• Parent organisation of an internal service

provider

■ Strategic choices can be made:

• Industry

• Geography

• Scale

• Demography (eg. if consumer IT service)

54

Step 1 – Define the markets & identify

customers




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Desired business outcomes ■ Increase revenue

Customer assets (see right)

Constraints ■ Eg. inability to continue service should a

disaster occur

Perception & measurement

of value / Quantify outcome ■ Objective / Metric / Desired Outcome

■ “Recover Services From Major Disruptions Within x Business Time-frame”

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Examples of Customer assets

Network

Server

Storage

Facility

Application

A1

A2

A3

A4

A5

Step 2 – Understand the customer

Step 3 – Quantify the Outcomes




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56

A1

- N

etw

ork

A2

- S

erve

r

A3

- S

tora

ge

A4

- F

acili

ty

Etc…

U1 - Train

U2 - Support

U3 - Maintain

U4 - Design

U5 - Implement

U6 - Host

etc…

Step 4 – Classify & Visualise the

service

Also combine with

- Industry

- Geography

- Scale

- Demography




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57

Less promising green

tomatoes

(maybe invest later)

Inedible but promising

tomatoes

(probably invest later)

Imperfect but

edible tomatoes

(maybe invest now)

Late blossoms and

small green tomatoes

(probably never invest)

Rotten tomatoes (never invest) Ripe tomatoes (invest now)

Value-to-cost

0

Lo

wer

Vo

lati

lity

Hig

her

1.0 > 1.0

Step 5 – Understand the market spaces




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Step 6 – Define services based on

outcomes

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Lines of service Outcomes supported Constraints removed

Mobile workplace

services

Credit-reporting

services

Business continuity

services

f ield staf f securely

access enterprise

applications

loans of f icers

determine credit

rating of applicants

business processes

continue to operate

being constrained by

location or time

disruption or loss

from failures or

disastrous events

provide value

to the

customer

when

without




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Step 7 – Develop service model

59

Example of Service Model – Business Continuity Service

http://networld-ic.com/managementsystem-en/datacenter-disaster-recovery/Default.aspx












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Step 8 – Define service package

Core Service ■ Delivers the basic outcome required

■ E.g. Disaster recovery centre for business continuity service

Enabling Service ■ Needed for core service but not

visible to business customer

■ E.g. Electricity supply to disaster recovery centre

Enhancing Service ■ Not necessary in the core service

■ Makes service attractive

■ E.g. good transport & catering service for staff carrying out disaster recovery work

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Service package

Core service

Enabling service Enhancing service




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ITIL ® Service Portfolio Management

Initiate Portfolio Review

Portfolio Review

■ “Define”

• E.g. External service provider definition of which services to provide

■ “Analyse”

■ “Approve”

■ “Charter” / “Retire”

“Strategy Execution” (part of another ITIL® process known as Strategy Management process)

Refresh Portfolio

61

Less promising green

tomatoes(maybe invest later)

Inedible but promising

tomatoes(probably invest later)

Imperfect but

edible tomatoes(maybe invest now)

Late blossoms and

small green tomatoes (probably never invest)

Rotten tomatoes (never invest) Ripe tomatoes (invest now)

Value-to-cost

0

Lo

we

r

Vo

latility

Hig

he

r

1.0 > 1.0




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SUMMARY

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Summary

Portfolio management – important as it chooses the right things to do and ensures they get done

For IT portfolio management, EA and ITIL ® Service Strategy are available as best practises

EA and ITIL SS can be complementary

■ EA plans portfolio from enterprise perspective

■ ITIL ® SS plans portfolio more from service provider perspective (while taking value to customer into consideration)

EA (TOGAF) and ITIL ® both internationally recognised and adopted

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For Further Information

Please refer to:


Or email Goh Boon Nam at:

[email protected]

64



mailto:[email protected]


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Acknowledgements & Notices

ITIL® is a registered trade mark of the Cabinet Office

The Swirl logo™ is a trade mark of the Cabinet Office

Quoted text is from ITIL® Service Strategy © Crown Copyright 2011. Reproduced under licence from the Cabinet Office. [Any original emphasis excluded. Emphasis then added for purpose of this presentation.]

Text in italics is based on Cabinet Office ITIL® material. Reproduced under licence from the Cabinet Office

TOGAF® is a registered trademark of The Open Group in the United States and other countries

© 2011 NUS unless otherwise stated.



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THE END

66


it portfolio management using enterprise architecture and itil® service strategy

Documents

portfolio management

portfolio plan

portfolio management

update of portfolio

organisations management

enterprise architecture

ea programme

right things