Portfolio Management (>Plan > Invest >Govern For Value And Alignment)
Realizing Maximum Value Accretion
TGB Key Questions to Ask The Objectives Of Portfolio Management Are To Address These Questions.
Are we selecting the right projects in order to best maximize business value?
Are we deploying our resources appropriately?
Are we developing the capacity to understand, and learn from, our project failures?
What are we doing to increase the probability of achieving expected benefits from our projects?
Do we have a framework for institutionalizing program and project management best practices?
What is TGB’s Real Role – Increasing Asset Value
Invest for Modernization, Efficiency and Effectiveness of the State’s Business
Oversee Increasing the States Technology Asset Value
Select High Value Investments
Build Portfolios for Value Accretion Management
Oversee Investment Portfolio Performance
TGB Mission: “Facilitate information technology decisions within the executive branch of Iowa State Government, basing these decisions on business drivers supporting customer requirements.” What is the Agenda?
TGB Vantage Point for Portfolio Management Enterprise Architecture Government Regulations Business Information Requirements Business Drivers Common Executive Vision Technology Architecture Application Portfolio Infrastructure Environmental Trends Vendors/Suppliers and Partners Business Architecture Governance External Forces Program Management Staff and Organization Operational Excellence Capabilities IT Resource Management Customer Customer Customer Customer ’ IT Governance and Investment Performance
Two Interacting Portfolios Must Be Managed For Value Both Applications And Projects Must Be Managed Simultaneously For Maximum Value Accretion and Business Alignment Principal Process Focus: Generation of Business Value Projects change the IT Assets Portfolio
Portfolio Categorization Based on Business Stage Needs High risk, hopefully high reward Transform The Business NPV – Net Present Value Identify and size projects critical to established strategy Grow The Business ROI – Return on Investment Run The Business Business Continuity Cost Control Assets Applic’s Projects Assets Applic’s Projects Assets Applic’s Projects
Coeur Group’s P f M Process High Level View Portfolio Plan Categorize Business Stage Needs Create Asset/Project Portfolios Assess Portfolios Consolidate Eliminate Reinvest Measure Value Gov. & Org. Develop Financial Views
Developing Application and Project Portfolios as the Starting Point:
Offering agencies the opportunity for individual agency ratings (providing agency focus)
Offering state government focus (providing direction to meeting various Culver administration goals)
IT Portfolio Management is the methodology and associated processes that provide highly leveraged selection, prioritization, implementation and measurement of Business/Technology investments. Are We Changing Our Investment DNA?
Maximizing Value Accretion with Portfolio Management
What’s the Problem?
Uncoordinated Value Management
Project, Application and Asset, replacement cost and business values are unknown
Governance and measurement processes are rudimentary and manual
What’s the Solution?
Online Inventory Projects and Applications
Select Groups for Portfolios based on Business Stage Needs