6.18.2013 - 2013 - Prj & Port Mgmt SftDev - Portfolio Management - For the Manager - Making Good Decisions

Global Business Services

© 2013 IBM Corporation

2013 - Prj & Port Mgmt SftDev - Portfolio Management - For the Manager - Making Good Decisions

Christopher Wolters

GBS North America PM&T Tools Enablement

Leader

June 18, 2013


© 2013 IBM Corporation2

Objectives

We will discuss:

Product Portfolio Management as a practice used for the identification and continuous oversight of the organizational initiatives, enabling the achievement of the organizational goals.

How tools solutions help organizations to:

– Evaluate and select the right project investments for the business

– Execute and manage projects in a highly collaborative environment

– Measure and monitor performance to optimize successful delivery



Agenda

Project Portfolio / Program Management

IBM solutions and capabilities

PPM Key Areas:

– Application Portfolio Management

– Demand Management

– Delivery Management

– Product Management & Product Portfolio Management

Tools for PPM

Key Benefits of Tools in PPM solutions

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Project and Program Management

What is a Project?

– Time-bounded work efforts that produce a unique result

What is a Program?

– Sets of projects that can be beneficially managed together

• Shared resources• Dependencies

What is the primary concern ?

– Project execution within the established time, cost, and quality constraints

What is an Operational Risk ?

– An event that might occur and negatively impact the project

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Project Portfolio Management

What is a Portfolio ?

– Sets of related projects and programs that can be beneficially managed together from an investment viewpoint

Portfolio Management:

– is a financial discipline, not an engineering discipline

– includes both project initiation and periodic review to ensure ongoing alignment and value. This review may result in project acceleration, deferment, or termination

What is the primary concern ?

– It is aligning these investments with strategic business goals and maximizing the value, within established risk criteria

What is an Investment Risk ?

– The uncertainty of realizing the project value

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Performance Management

What is Performance Management ?

– Enable organizations to apply quantitative management techniques to their projects:

• Define metrics (KPIs) that are aligned with business goals

• Automatically collect metrics from operational repositories and store them in a data warehouse for reporting and analysis

• Monitor metrics versus targets within allowed variances

• Diagnose root cause of variances and take corrective action

• Quantify benefit of practices and tools

• Track trends over time

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Agenda



PPM Key Areas:





Tools for PPM


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IBM’s modular, flexible, open and integrated solutions


Portfolio Management

Product Management

Project Management

“Doing Things Right”

“Measure Performance Against Business Objectives”

Align portfolio investments with business priorities

Manage and optimize project execution

Improve predictability of product success

Measure team performance and project results

“Making the Right Investments”

“Right Market, Right Time, Right Scope”

IBM’s Product, Project, Portfolio and Performance Management Solutions



The IBM Software Delivery Platform capabilities

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TransformInformation Technology

ModernizeEnterprise Assets

DeliverSmarter Products

Collaborative Lifecycle Management

Compliance & Security

Design & Development

DevelopmentTools

Testing Tools

Modeling Tools

Architecture Tools

Quality Management

Asset Management

RequirementsDefinition& Management

Build& Deploy Management

Security Management

Compliance Management

Product & Project ManagementBusiness Planning & Alignment

Enterprise Architecture

Portfolio Management

Configuration& Change Management

Product& Project Management




Agenda



PPM Key Areas





Tools for PPM


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Application Portfolio ManagementIncrease strategic spend and improve business agility

Enable a shift in application investments towards business innovation by reducing cost of maintenance and operations and improving business agility

Better align application investment decisions with organizational strategies and priorities through an effective dialog between business and IT

Improve efficiency in the governance of application portfolio rationalization efforts, leading to optimized allocation of capital and resources with reduced time to decisions

Enable realization of application decisions through road mapping and integration with cross-platform ALM



Demand ManagementPrioritize, evaluate, compare, visualize and plan for optimized portfolios supporting business needs

Capture new investment ideas from a large community of stakeholders

Prioritize business needs, ideas, project proposals for an optimized portfolio

Model the project's Net Present Value (NPV) and understand the impact of risk and uncertainty surrounding these values

Understand value and perform the tradeoffs such that projects are set up for success, and operate within resource, finance and time constraints



Delivery ManagementManage value and change in delivery via increased transparency, collaboration and communication across teams

Focus on managing value and change to create true business value

Drive efficiencies and control through collaboration, communication and transparency around project information

Inform decision making at all levels with improved traceability

Create “self directed teams” and enable agility on a wider scale with increased transparency and governance

Respond quickly to business and project changes to ensure that risk is mitigated early and priorities are adjusted as appropriate



Product Management & Product Portfolio ManagementRight products to the right market at the right time with Market Driven Product Development

Capture “voice of the customer” from external and internal stakeholders

Drive efficiencies and control through collaboration, communication and transparency around product and requirement information

Prioritize ideas, requirements, features and products in order to optimize products and portfolios

Enable realization of application decisions through road mapping and integration with cross-platform ALM (development and engineering)

Handle the early phases of product development and secure the right things are done – before they are done the correct way



Agenda



PPM Key Areas:





Tools for PPM

– Rational Tools

– IBM Program Work Center

– Collaborative portfolio management and team planning solution


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Change, Configuration and Build Management(Collaboration, Planning)

Manage value and change in delivery via increased transparency, collaboration

and communication across teamsRational Team Concert (RTC)

Application Portfolio Management

Application Portfolio Management

Demand ManagementDemand Management

• High costs (maintenance operations)• Can’t respond to customer and stakeholder

requests and requirements (lack of business agility)

Rational tools

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Rational solution for Collaborative Lifecycle Management (CLM)

Align Requirements, Development and test teams to reduce cost and improve predictability, value,

quality and time to delivery[RRC + RTC + RQM]

Product Development/PLEMake product development market driven. Improve capacity to deliver value by effectively capturing,

prioritizing, managing and monitoring requirements throughout the lifecycle

Rational DOORS

Requirements DefinitionImprove capacity to deliver value by effectively

capturing, prioritizing, managing and monitoring requirements throughout the lifecycle

Rational Requirements Composer (RRC)

Common Entry PointsTo discuss Focal Point

Capabilities/ Accelerators Why add Focal Point to a dealCustomer Pain Point

Enterprise ArchitectureFree up maintenance and operations budgets and

increase innovation and agility by for example consolidating and modernizing applications

Rational System Architect

• Ineffective collaboration & requirements between the business, IT and Suppliers

• Recurring delays in delivery, lower than expected quality, extensive scrap and rework

Product Portfolio Management

Product Portfolio Management

• Funds and resources spent on prod and req with no market or business value

• Can’t effectively prioritize and make informed decisions and lack of collaboration and communication (business and development)

Ultimately it’s all about choices and tradeoffs. Our ability to manage value and change will determine business success. Focal Point provides this, allowing organizations to gain the most value, aligning to the organizational and business objectives. In addition it drives end to end communication, collaboration and transparency

Rati

on

al Focal P

oin

tR

ati

on

al Focal P

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Delivery ManagementDelivery Management

• Reduce waste and increase business value by managing the end-to-end lifecycle

• Align investments with business objectives with IT capability focus, not an application, service or single-project focus

Outsourcing/Requirements DefinitionLower the risks associated with outsourcing part or

all of the application development process, by providing a governance model adapted to a multi

supplier sourcing structureRational Requirements Composer (RRC)

Governance Application Development OutsourcingGovernance Application

Development Outsourcing

• No way to prioritize business needs, ideas, project proposals for an optimized portfolio

• Can’t capture new investment ideas, requirements etc

Application PortfolioManagement

Application PortfolioManagement

Governance ApplicationDevelopment OutsourcingGovernance Application

Development Outsourcing

Demand and DeliveryManagement

Demand and DeliveryManagement



IBM Program Work Center

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Focus on value added activities, capitalizing on gained efficiencies through automation & centralization of information

Improve collaboration and awareness by highlighting key focal points (e.g. risks, issues) via “Smart Links”

Links action to strategy

Track current program status via real-time updates, including dashboards, reports and value drivers.

Increase turnaround time on decisions, modifications and learnings with real-time view

Enables real-time visibility

Reduces costly issues and dropped balls through increased visibility across countries and workstreams

Eliminates administrative burdens allowing your team to focus on value

Reduces costs for your program

Enable a fast-start up by leveraging leading practice deal templates, metrics and industry standards

Drive consistency in execution; realize continuous improvement by factoring learning into your process

Drives best practice

Empowers your business and IT project management teams in the following ways



IBM Program Work Center Application for coordinating large-scale programs,

initiatives or transformations

– Easy to setup

– Designed for business users

Comprehensive end to end program management capabilities

– Project Plans / Tasks

– Issues and Risks

– Document Centralization

– Business Benefits Tacking

Role based visibility and reporting

– Real-time visibility across all data including documents

– Personalized home pages to be ‘one click away’ from relevant project information

Powerful access control & permission scheme

Integrated with best-of-breed project management and desktop tools

– Integrates with MSProject and excel for plan updates

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Problem: I have a development team that are rapidly adopting agile techniques, a project management community that feels out of control. We want to become more flexible but not at the risk of introducing error and inefficiency into the process.

Our solution: Tightly coupled portfolio management and team planning

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Capture, evaluate, and prioritise customer needs High-level financial budgeting and planning Road-mapping and high-level release planning High-level status, cost and benefit tracking

Capture, evaluate, and prioritise customer needs High-level financial budgeting and planning Road-mapping and high-level release planning High-level status, cost and benefit tracking

Development iteration planning Task management and work item tracking Team collaboration Integrated developer IDE

Development iteration planning Task management and work item tracking Team collaboration Integrated developer IDE

Elaborate customer needs with process flows, story boards or user interface sketches

Review and approval of requirements Manage change and impact

Elaborate customer needs with process flows, story boards or user interface sketches

Review and approval of requirements Manage change and impact

Requirements Composer

/ IPWC



High-level solution workflow

Rational Focal Point Rational Team Concert / IPWC

Rational Insight

Capture Idea Develop

Business Case

Analyze and Prioritize

Plan Roadmap

Develop WBS & Schedule

Define Risks….

Snapshot

Target Work to Iterations

Select

Authorize

Create Project

Elaborate Work Items

Perform Work

Assign Resources

Report Time

Monitor

Project

Review

Portfolio

ScheduleBusiness NeedsEffort estimates

Work reflected in PM views

Project actuals collected

Potential change based on review

Monitor

Portfolio



Collaboration and planning between business and delivery

Business / Product Manager• Captures the voice of the customer• Establishes business priorities• Agrees budgets and roadmaps• Communicates status

Analyst / Architect• Confirms understanding of customer needs• Translates needs into deliverable

requirements• Provides delivery cost and risk assessment• Determines functional dependencies

Project Manager / Team Lead• Expands requirements to actionable tasks• Confirms delivery schedules and estimates• Allocates resources and manages workload• Identifies and escalates delivery issues

OneDeliveryTeam

No one operates in isolation.Each decision has a “knock-on” effect.



Collaborative Lifecycle Management

The Rational solution for Collaborative Lifecycle Management (CLM) provides integrations across the Change and Configuration Management (RTC), Requirements Management (RTC), and the Quality Management (RQM) Jazz-based

applications, to connect the work of analysts with development and test teams.



Agenda



PPM Key Areas:





Tools for PPM


23 IBM Confidential




Effective Project Management of multiple IT projects Track cost/effort/benefit/risk/ROI across the portfolio

Compare baselines and track variances

Track delivery progress

Health alerts and variance reporting

Focus on what matters most in driving business results Align features to business direction and strategy

Objective decision making

Organize work around value Perform cost/benefit and trade-off analysis to make informed investment decisions

Identify and prioritise product features by the value they deliver

Align and adjust product roadmaps to changing market needs and business value

Visibility and Collaboration Capture market inputs, business needs and demands, customer feedback in one place to make sure the best

ideas become reality

Capture approvals and decision points with full traceability

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