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www.pragmantic.com
expertDAY’08
Portfolio Alignment with Business Intentions
S55 - IT GovernanceSession
Luis Becerra
Business Analyst Manager
Pierre-Yves Niederhauser
Senior Consultant
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Play the game
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Anybody noticed the whole world
has gone process mad?
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Play the game
The thrill of action, the drama of
emotional bonds to live the
game on the pitch set passion
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When you play the
game there’re rules
Play the game
To win the game
you’ve got to score
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Our time today
Demand Management
Ensure that requests of
strategic initiatives are balanced
with efficient day-to-day IS
service delivery and routine changes
Portfolio Management
Support prioritization processes
through clear responsibilities
for consolidating, evaluating,
and approving collected
Business and IT demands
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Case study: Generic Context
Swiss Premium Quality Copper Alloys since 1883
w h e r e h i g h - t e c h b e g i n s .
• over 1’500 employees in three countries
• Headquarter & main site in Switzerland
• 85% of products certified for specific industries
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Copperband
Others
Case study: Business Intentions
Four Strategical Business intentions
w h e r e h i g h - t e c h b e g i n s .
• 2 digits growth on Eastern European markets
• Seamless integration of new acquired company
• Keep current market share on US demographic zone
• Sustain significant R&D effort to develop new alloys
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Case study: IS Information
IS organisation at a glimpse
w h e r e h i g h - t e c h b e g i n s .
• Staff: 15 full time equivalent (60%) + 6 permanent consultants (40%)
• Budget: 11.5 MCHF per year (3 MCHF allocated to new projects)
• IS landscape Main datacenter in the HQ (Switzerland)
Centralized storage (SAN) and IT administration
2 ERP systems in used – 5 financial apps, 3 HR packages
In house project methodologie – no consolidation of projects
• Org.: Centralized management and infrastructure decisions
decentralized applications decisions under the umbrella of
business unit leaders which are key process owners
• Governance: Focus on making individual decisions. Unit of interest is the project
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Case study: IS Concerns
Main concerns of the IS Director
w h e r e h i g h - t e c h b e g i n s .
• More than 50 requests in the pipeline in addition to daily execution
• Increasing pressure from CFO to report on IS investments (ROI / Value)
• Reactive mode of IS operations and support
• Major delays on project delivery
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IT Strategic Goals for 2008-2010 period
w h e r e h i g h - t e c h b e g i n s .
IT StrategicPlan doesn’t
exist!
It is NOT a reason to stayin the status
quo zone
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List of Requests as of May 1st 2008 Investment (KCHF)
Total 8'033 923 3'490
ID Project Name Short description Sponsor First year Next years Effort (MxD) Priority
001 VoIP Replacement of current PABX by VoIP infrastructure in HQ STO 50 10 20 High
002 e-mail archiving Implement an e-mail archiving solution ADR 130 25 30 High
003 Vista Migration to Vista for all the clients JRJ 160 - 50 Medium
004 SAN expansion Add 3 TB of raw disk capacity to the SAN01 infrastructure ADR 80 10 10 Medium
005 Mobile toolkit Equip salesforce with laptops and mobile internet access MAK 125 20 20 High
006 Intranet Develop an intranet to share all documents that are currently on the file system JRJ 50 10 50 High
007 Wireless Mice Equip all workstations with new wireless last generation optical mice STO 45 - 5 Low
008 Single Sign-On Investigate and propose a single sign-on solution for all internal apps QDL 20 - 20 High
009 Virtual DC Implement a virtualized server farm and migrate 20% of application servers JRJ 450 55 300 High
010 WiFi 802.11N Implement a secured wifi 802.11N network in the factories JRJ 63 8 80 Medium
011 ERP data link Data synchronization for orders tracking between CZ and CH sites STO 20 5 10 Low
012 Backup on disk Selection and implementation of a Virtual Tape Library STO 200 30 45 Medium
013 Mobile Training Acquire a mobile set for training department (10 laptops + printer + beamer) STO 30 5 5 Medium
014 R&D Excel Macros Redevelop set of 30 Excel 3.0 macros used by R&D dept in VBA ADR 150 - 100 Low
015 Videoconf Implement teleconferencing between CH, US and CZ sites MAK 75 9 25 High
016 Backup of clients Provide a backup solution for clients (especially laptops) FFM 50 7 20 High
017 Ticketing Implement e-tickets for helpdesk STO 30 - 20 High
018 Client HW Renew hardware with a maximum of 3 desktop models and 2 latops models FFM 1'500 200 450 High
019 Secure DC Secure physical access to the HQ data center JRJ 35 - 10 High
020 ERP Switzerland Upgrade ERP to latest version (5.4) FFM 245 - 40 High
021 SQL Server farm Implement SQL Server farm and remove SQL Server from other servers STO 225 34 50 Low
022 SW portfolio Standardize software portfolio with one corporate application by functionality STO 220 30 35 Medium
023 2D codebar Replace current codebar solution in the factories by new generation 2D codebars STO 50 5 10 Medium
024 DR-Site Provide DR solution for ERP STO 500 70 200 High
025 Internet.cz Integrate Czech website into corporate website MAK 50 10 35 High
026 Office 07 lic. Acquire 800 Office 2007 licenses (upgrade) FFM 265 - 5 High
027 Office 07 training Training of users on the new functionalities of Office 2007 STO 320 - 300 High
028 Gbit Ethernet Upgrade all sites to end-to-end Gbit Ethernet FFM 650 80 500 Medium
029 e-punchcard Acquire and implement e-punchcard solution in all the factories + offices in CH QDL 150 20 30 Medium
030 fax solution Centralized and secured fax solution for CH sites STO 80 10 20 High
031 e-guard Remote surveillance of raw material stocks (CH / CZ) JRJ 250 40 35 Medium
032 QoS WAN QoS implementation JRJ 120 15 40 High
033 CRM CRM solution selection JRJ 45 - 20 High
034 VPN Provide VPN solution for VIP + Salesforce JRJ 50 10 10 High
035 AD Review Review Active Directory design and clean AD contents FFM 100 20 80 Low
036 Data Center UPS Upgrade/Replacement of the current UPS solution ADR 85 - 20 Medium
037 One printer Consolidate printing infra, provide one access to one single polyvalent printer FFM 250 30 150 Medium
038 Whitepages Implement internal "who's who" solution, based on AD + HR data STO 85 10 60 High
039 Security policy Design internal IT security rules and process handbook ADR 25 5 15 High
040 SW packaging Implement packaging and remote SW distribution solution ADR 150 20 80 Medium
041 Anti-spam Select and implement anti-spam solution JRJ 50 - 10 Medium
042 IP address plan Reorganize IP addressing plan with integration of new CZ site JRJ 60 - 15 Medium
043 Corporate PM Provide centralized MS-Project Server infrastructure STO 115 10 50 High
044 Internet jobs Implement job posting and follow-up via corporate internet QDL 20 - 10 High
045 Patch mgmt Design and document patch management process for servers STO 10 - 5 Medium
046 Asset mgmt Develop database for IT physical assets inventory FFM 55 10 30 Medium
047 Spectro DWH Develop datawarehouse for spectrometer results analysis ADR 110 20 40 Medium
048 Conference room Equip executive conf room with Beamer + Home Cinema infra MAK 50 10 10 High
049 Instant messaging Select and implement corporate Instant Messaging solution QDL 35 10 15 High
050 ITIL one Develop and implement a Configuration Management Database (CMDB) QDL 350 60 300 High
Gather all demands into a consolidated place
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More than 50 requests...
for a total amount of 8.00 MCHF investment
Budget allocated to new IS initiatives
3.00 MCHF
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Structured demands
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Rethink IS as an Investment Portfolio
The portfolio notion provides a
well-understood business lens
as well as concepts familiar to
business management and
personal life investments.
Value creation must recognize
there’re different categories of
investments that must be
evaluated and managed differently.
The establishment of portfolio
parameters will constitute the first
step to categorize the demands
Provide shared IT capabilities
(Infrastructure)
Reduce cost of doing business
(Transactional)
Provide better information
(Informational)
Gain competitive advantage or major
innovation (strategic)
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Dimensions of IS Portfolio
where h igh - tech beg ins .
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Build an IS Portfolio based on dimensions
Direction
• Helping IS to understand how to sustain
business operations strategies
Identification
• Identifying the RIGHT initiatives needed to
meet business operational objectives
Alignment
• Aligning the business operational
objectives with the key IS initiatives trough
criteria and weight them against corporate
business intentions
Relationship
• Engage dialogue with business
counterparts and build trust by
understanding the intersections between
business intentions and IS deliveries
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Arbitration defined
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Arbitration of IS Portfolio
where h igh - tech beg ins .
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Arbitration of IS Portfolio
Prioritizing
• We can't satisfy every single demand at
once so we have to set priorities with
business peers. Do the right projects
versus do the projects right
Scoring
• Combine various inputs to result in a
proposition for arbitration illustrated visually
through graphic charts
Balancing
• Balance a set of common initiatives against
criteria will give you different angles of
analysis
Deciding
• Being able to make informed decisions
it is what matter most
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What did weaccomplish?
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Gain visibility and credibilityPublished portfolio of initiatives based on
transparent rules and engage dialogue
with business counterparts.
AlignInvestments and human resources are
aligned with business operational
objectives
PrioritizeScore initiatives based on defined rules
and get common understanding
First Visible Benefits
ENABLE DECISION MAKING– IT Governance
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What we plan to do?
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Your Next Steps
On Monday morning
• Allow a space in your typical daily
agenda
• Find a place to think
• Spend a time intentionally to review
this presentation
In June
• A one day workshop to dive into
Copperband case study
• Date:
• Lausanne on June 17th 2008
• Geneva on June 24th 2008
• Contact Helène Polain
• Subject: IT Governance Workshop
Time to think from divers angles
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Play the game
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Backup slides
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ValIT Management Practices
Provide strategic direction
Evaluate & prioritize
investments
Move selected
investmentsto active portfolio
Manage overall
portfolio
VG5, 9-11
PM12-13PM11
PM7-10
VG8
Maintainresource
profile
Maintainfundingprofile
Monitor & report on portfolio
performanceIdentify business requests
Define candidate programme
Analyse alternatives
Assignaccountability
Document business
case
Launchprogramme
Manage programme execution
Monitor on programme performance
Retire programme
VG1-4,6-7
PM6
PM14
PM1-5
IM1-2
IM3, 5-7
IM4
IM9
IM8,13 IM10 IM11-12 IM14 IM15
Establish governance framework
Establish portfolio parameters
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Maintainresource
profile
Maintainfundingprofile
Monitor & report on portfolio
performanceIdentify business requests
Define candidate programme
Analyse alternatives
Assignaccountability
Document business
case
Launchprogramme
Manage programme execution
Monitor on programme performance
Retire programme
VG1-4,6-7
PM6
PM14
PM1-5
IM1-2
IM3, 5-7
IM4
IM9
IM8,13 IM10 IM11-12 IM14 IM15
Establish governance framework
Establish portfolio parameters
What have we covered today?
Provide strategic direction
Evaluate & prioritize
investments
Move selected
investmentsto active portfolio
Manage overall
portfolio
VG5, 9-11
PM12-13PM11
PM7-10
VG8
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