Applying Portfolio Management Principles to Information Technology Projects
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Transcript of Applying Portfolio Management Principles to Information Technology Projects
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Applying Portfolio Management Principles
to Information Technology Projects
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Portfolio Management
Multiple Projects and / or Programs aligned to meet the strategic objectives of the organization
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Information Management and
Information Technology (IM-IT)
No More IM-IT Projects!
Just Business Projects
with IM-IT components
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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
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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
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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
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Projects without Portfolio Management
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StrategicObjectives
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With Centralized Control
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Mandate
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With Portfolio Management
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Vision
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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
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There is a difference!
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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
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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
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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
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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
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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
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Enterprise Chaos
“70% of all code written today consists ofinterfaces, protocols and other procedures to
establish linkages among various systems” - IBM
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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
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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
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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
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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
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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
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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
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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