Transform Your Application Portfolio - and Keep Your Focus!
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Transform Your Application Portfolio – and Keep Your Focus! Patrick Buech, Software AG
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Application Portfolio Management is a discipline used to justify and measure the business value of each application in comparison to the cost of maintenance and operations. But Enterprise Architecture Management http://www.softwareag.com/corporate/products/aris_platform/aris_design/business_architect/capabilities/default.asp also plays an important role in solving this challenge. How do these two disciplines fit together? Is Application Portfolio Management a pure IT-related topic? Find out how Software AG’s ARIS Enterprise Architecture Management solution provides the methodology, the tools and best practice to answer these questions. To watch the full video, visit the Software AG resource center http://www.softwareag.com/corporate/rc/rc_perma.asp?id=tcm:16-105334.
Transcript of Transform Your Application Portfolio - and Keep Your Focus!
Transform Your Application Portfolio –and Keep Your Focus!
Patrick Buech, Software AG
December 13, 2012 | 2
� Laws
� Guarantees
� Compliance requirements
� Risk management
� Internal controls
Laws and regulations
� SOA and business services
� IT security/
standardization
� Cloud/Mobile/Social
Information technology trends
� Competition
� Cooperation
� Consolidation
� Economical climate
� Speed of innovation
Free market economy
� Customer satisfaction
� Product and service quality
� Response and delivery times
� Market segmentation
� Individualization
Customers
IT is not only supporting the business, IT is the change agent of the
business!
December 13, 2012 | 3
IT
As-Is
. . .Technologies
Applications
Business
The Challenge with IT Portfolios
Support BusinessGrowth
TechnologyInnovation
Demands
Just doing nothing automaticallyleads to increased costs
Keep-the-lights-on Strategy
IT Portfolios
December 13, 2012 | 4
Manage and Transform Portfolios to support Business Growth
References, Principles, Policies
Key questions:
• How long?
• What do I have to do?
• How much?
volatile
Operationalized throughProjects and Programs
ProjectPortfolio
Management
ROADMAP
To-Be
. . .Technologies
Applications
. . .Technologies
Applications
. . .Technologies
Applications
Milestone 1 Milestone 2
Business
• Agility• Efficiency• Innovation• Growth
Business
DemandsTechnologyInnovation
Support BusinessGrowth
IT
As-Is. . .
Technologies
Applications
IT Portfolios
December 13, 2012 | 5
Roadmap2MyCustomer!
The Result:- I needed much longer than expected!
- When I arrived I was totally exhausted and my appearance was pretty poor.
The Bottom Line:- I was not that as well informed as I thought
- My decisions were based on that poor level of information
December 13, 2012 | 6
This is valid for all kind of roadmaps.
As well as for
IT Modernization Roadmaps!
Lesson Learned from the “Paris Incident”
• Good decisions are based on a good
level of information!
• Keep the goal (area) in focus, at all
times!
• Be prepared for the unexpected rather
than go after a fixed roadmap!
December 13, 2012 | 7
IT Modernization Roadmaps
• Describe the transformation of the
application landscape
• Describe the execution of decisions which
are an outcome of a process called
Application Portfolio Management (APM)
Challenges
• IT modernization roadmaps describe the
ideal world (plan vs. reality)
• IT modernization roadmaps execute not
only rational decisions but also political
decisions
Retire Enhance
Replace Maintain
December 13, 2012 | 8
Application Portfolio Management –Means different Things to different People!
Why APM?
• A ‘Keep The Lights On’ strategy eats up IT budgets and eliminate the
ability to support business innovation and growth
• New applications intensify the biggest problem:
A growing not controllable application portfolio
APM in a nutshell
• Build the transparency and metric that
guide to good decisions regarding the
transformation of the application portfolio
• APM leads into reliable IT modernization roadmaps
• APM is a process!
December 13, 2012 | 9
Some questions to think about:
The Process of Application Portfolio Management in Four Steps
CreateTransparency
Build an inventory of the application portfolio
Define and GatherMetrics
For example costs, business support, usage,
criticality
Use Insight andDrive Change
Analyze, assess, evaluate, optimize,
rationalize
Modernize
Decide on fate of the application, create IT
modernization roadmaps, execute them
• What applications are in scope?
• What level of detailed information is necessary?
• Where to start?
• What are the goals of this initiative?
• Which kind of metric is necessary?
• What can be collected?
• How is the metric been used?
• How is it been updated?
• What analytics are needed?
• What viewpoints are needed?
• Who is involved?
• Who else needs this information?
• What else can be answered?
• Who has the decision-making power about the fate of the applications, IT budgets and investments?
December 13, 2012 | 10
Enterprise Architecture
answers questions from stakeholders from
business and IT!• How do I get from A to B?
• What‘s the impact of…?
• How much effort is…?
• What are the next steps?
• How much time do we need?
• How much cost do we have?
• Who is responsible for?
December 13, 2012 | 11
Software AG‘s Solution for Enterprise Architecture
The fully integrated EA solution combines the market-leading software, along with proven methodology, best-practices and expertise.
Analyze, optimize, plan and manage your enterprise
Synchronize IT change with business needs
Create the right roadmap for your business products, services and
solutions
Harmonize and standardize IT portfolios
Define and track your enterprise-wide standards
Optimize your IT budget and risk management
Support business process analysis, requirements
engineering, solution development, service,
application and technology portfolio management
- and more
December 13, 2012 | 12
Capabilities
December 13, 2012 | 13
Application Portfolio Management –Where Software AGs Enterprise Architecture Solution can help
CreateTransparency
Build an inventory of the application portfolio
Define and GatherMetrics
For example costs, business support, usage,
criticality
Use Insight andDrive Change
Analyze, assess, evaluate, optimize, rationalize
Modernize
Decide on fate of the application, create IT
modernization roadmaps, execute them
Application Code, Data,
Environment (automatically
gathered by application
mining tools, CMDB, Natural
Engineer,…)
Questionnaires,
Stakeholder Surveys
(manual data collection)
Customer Information Systems
e.g., ARIS IT Inventory
December 13, 2012 | 14
Publish, Document, Manage, Collaborate – Some examples
December 13, 2012 | 15
CreateTransparency
Build an inventory of the application portfolio
Define and GatherMetrics
For example costs, business support, usage,
criticality
Use Insight andDrive Change
Analyze, assess, evaluate, optimize, rationalize
Modernize
Decide on fate of the application, create IT
modernization roadmaps, execute them
Application Code, Data,
Environment (automatically
gathered by application
mining tools, CMDB, Natural
Engineer,…)
Questionnaires,
Stakeholder Surveys
(manual data collection)
Customer Information Systems
e.g., ARIS IT Inventory
Application Portfolio Management –Where Software AGs Enterprise Architecture Solution can help
December 13, 2012 | 16
Design, Architect, Plan, Transform – Some Examples
December 13, 2012 | 17
Outlook ARIS 9 – Two top features to support the APM process
Spreadsheets
New AnalyticCapabilities
ARIS spreadsheets – combine ARIS
artifacts with other data, calculate
and annotate. Design templates for
better results.
Comprehensive ad-hoc analysis,
content browsing and evaluation of
the ARIS repository independent of
any ARIS model definition.
December 13, 2012 | 18
Analyze, Control, Decide - EA Dashboards
December 13, 2012 | 19
CreateTransparency
Build an inventory of the application portfolio
Define and GatherMetrics
For example costs, business support, usage,
criticality
Use Insight andDrive Change
Analyze, assess, evaluate, optimize, rationalize
Modernize
Decide on fate of the application, create IT
modernization roadmaps, execute them
Application Code, Data,
Environment (automatically
gathered by application
mining tools, CMDB, Natural
Engineer,…)
Questionnaires,
Stakeholder Surveys
(manual data collection)
Customer Information Systems
e.g., ARIS IT Inventory
Application Portfolio Management –Where Software AGs Enterprise Architecture Solution can help
December 13, 2012 | 20
Excursion:The Quadrant Approach to Application Portfolio Management
The concept of the application portfolio was first described as a Strategic Grid that demonstrated the importance of IT to the business in 1983 by
McFarlan, McKenney and Pyburn in the Harvard Business Review’s “The
Information Archipelago – Plotting a Course.”
The idea: Classify applications into four quadrants to document the strategic relevance of the application to the business.
1.Strategic. Business depends on application for competitive advantage.
2.Turnaround. Business expects that the application will be strategically relevant in the future.
3.Support. Business sees no strategic value in the application.
4.Factory. Business sees strategic value now, but predicts that this will disappear in the future.
December 13, 2012 | 21
Application Portfolio – Example I:Decide on fate of the Applications
Retire Enhance
Replace Maintain
December 13, 2012 | 22
Application Portfolio – Example II:Strategic Business Importance
Remarks
• Define the categories that matter to your goals
• Automatic generation would be nice but politics makes it hard to do
• Analytics are needed to make reliable decisions
• Impact of decisions needs to be analyzed
December 13, 2012 | 23
Application Portfolio – Example III:Automaticly Generated (Application) Portfolios
December 13, 2012 | 24
IT Modernization Roadmap
Remarks
• Manage application roll-outs over time based on processes, organizations and locations
• Define application standards based on the process landscape
• Manage and roll out these local and/or global application standards
• Generate and simulate different time based viewpoints based on an analysis date
December 13, 2012 | 25
Analyze Impacts of the Application Portfolio on IT Modernization Roadmaps
December 13, 2012 | 26
Enterprise Architecture Dashboards I
December 13, 2012 | 27
Enterprise Architecture Dashboards II
December 13, 2012 | 28
IT Modernization Roadmaps and Project Portfolio Management –The tricky Link between Plan and Reality
Project Portfolio Management
Tool
December 13, 2012 | 29
Summary & Recommendations
• Although it is seen very often as project based, APM is an ongoing process which should be installed permanently in the organization!
• APM does not mean managing only, it has to lead into activities to transform the application portfolio!
• Transparency is key – but be wise where you begin to address transparency!
• Start with a clear definition of goals – Remember: APM means different things for different people!
• Software AGs EAM Solution provides a powerfulmetadata repository and a robust set of featuresto leverage APM!
• Drive IT Modernization activities with Software AG!Move away from just “keeping-the-lights-on” andstart to actively support strategic business growth!
Thank you
