expertDAY’08


S55 - IT Governance
Session


Portfolio Alignment with Business Intentions

Luis Becerra
Business Analyst M...
Play the game
Anybody noticed the whole world
    has gone process mad?




            www.pragmantic.com
Play the game




The thrill of action, the drama of
  emotional bonds to live the
 game on the pitch set passion
        ...
Play the game
When you play the                      To win the game
game there’re rules                    you’ve got to ...
Our time today

                                              Demand Management

                                         ...
www.pragmantic.com
Case study: Generic Context



           where   high-tech   begins.




Swiss Premium Quality Copper Alloys since 1883

...
Case study: Business Intentions



            where   high-tech   begins.




Four Strategical Business intentions
      ...
Case study: IS Information


              where   high-tech   begins.



IS organisation at a glimpse
   • Org.:      Cen...
Case study: IS Concerns


            where   high-tech   begins.




Main concerns of the IS Director

   • More than 50 ...
www.pragmantic.com
IT Strategic Goals for 2008-2010 period



where   high-tech   begins.
                                              IT St...
Gather all demands into a consolidated place


                                                                          L...
Structured demands



       www.pragmantic.com
Rethink IS as an Investment Portfolio

The portfolio notion provides a
well-understood business lens
as well as concepts f...
Dimensions of IS Portfolio




where high-tech begins.




       www.pragmantic.com
Build an IS Portfolio based on dimensions

Direction
• Helping IS to understand how to sustain
  business operations strat...
Arbitration defined


       www.pragmantic.com
Arbitration of IS Portfolio




where high-tech begins.




       www.pragmantic.com
Arbitration of IS Portfolio
Prioritizing
• We can't satisfy every single demand at
  once so we have to set priorities wit...
What did we
accomplish?


   www.pragmantic.com
First Visible Benefits
Gain visibility and credibility
  Published portfolio of initiatives based on
  transparent rules a...
What we plan to do?


       www.pragmantic.com
Your Next Steps
On Monday morning
                                               Time to think from divers angles
• Allow ...
Play the game




www.pragmantic.com
Backup slides


     www.pragmantic.com
ValIT Management Practices
                                                                                               ...
What have we covered today?
                                                                                              ...
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Portfolio alignment with business intentions

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Portfolio alignment with business intentions

  1. 1. expertDAY’08 S55 - IT Governance Session Portfolio Alignment with Business Intentions Luis Becerra Business Analyst Manager Pierre-Yves Niederhauser Senior Consultant www.pragmantic.com
  2. 2. Play the game Anybody noticed the whole world has gone process mad? www.pragmantic.com
  3. 3. Play the game The thrill of action, the drama of emotional bonds to live the game on the pitch set passion www.pragmantic.com
  4. 4. Play the game When you play the To win the game game there’re rules you’ve got to score www.pragmantic.com
  5. 5. 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 www.pragmantic.com
  6. 6. www.pragmantic.com
  7. 7. Case study: Generic Context where high-tech begins. Swiss Premium Quality Copper Alloys since 1883 • Headquarter & main site in Switzerland • 85% of products certified for specific industries • over 1’500 employees in three countries www.pragmantic.com
  8. 8. Case study: Business Intentions where high-tech begins. Four Strategical Business intentions Others • 2 digits growth on Eastern European markets Copper band • Seamless integration of new acquired company • Keep current market share on US demographic zone • Sustain significant R&D effort to develop new alloys www.pragmantic.com
  9. 9. Case study: IS Information where high-tech begins. IS organisation at a glimpse • 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 • 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 www.pragmantic.com
  10. 10. Case study: IS Concerns where high-tech begins. Main concerns of the IS Director • More than 50 requests in the pipeline in addition to daily execution • Increasing pressure from CFO to report on IS investments (ROI / Value) • Major delays on project delivery • Reactive mode of IS operations and support www.pragmantic.com
  11. 11. www.pragmantic.com
  12. 12. IT Strategic Goals for 2008-2010 period where high-tech begins. IT Strategic Plan doesn’t exist! It is NOT a reason to stay in the status quo zone www.pragmantic.com
  13. 13. Gather all demands into a consolidated place 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 003 004 Vista More than 50 requests... SAN expansion Migration to Vista for all the clients Add 3 TB of raw disk capacity to the SAN01 infrastructure JRJ ADR 160 80 - 10 50 10 Medium 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 009 010 Virtual DCfor a total amount of 8.00 MCHF investment WiFi 802.11N Implement a virtualized server farm and migrate 20% of application servers Implement a secured wifi 802.11N network in the factories JRJ JRJ 450 63 55 8 300 80 High 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 015 016 Videoconf Budget allocated to new IS initiatives Backup of clients Implement teleconferencing between CH, US and CZ sites Provide a backup solution for clients (especially laptops) MAK FFM 75 50 9 7 25 20 High 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 021 022 SQL Server farm SW portfolio 3.00 MCHF Implement SQL Server farm and remove SQL Server from other servers Standardize software portfolio with one corporate application by functionality STO STO 225 220 34 30 50 35 Low 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 www.pragmantic.com Design internal IT security rules and process handbook ADR 25 5 15 High
  14. 14. Structured demands www.pragmantic.com
  15. 15. 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 Provide shared IT capabilities (Infrastructure) investments that must be Reduce cost of doing business (Transactional) evaluated and managed differently. Provide better information The establishment of portfolio (Informational) Gain competitive advantage or major parameters will constitute the first innovation (strategic) step to categorize the demands www.pragmantic.com
  16. 16. Dimensions of IS Portfolio where high-tech begins. www.pragmantic.com
  17. 17. 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 www.pragmantic.com
  18. 18. Arbitration defined www.pragmantic.com
  19. 19. Arbitration of IS Portfolio where high-tech begins. www.pragmantic.com
  20. 20. 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 www.pragmantic.com
  21. 21. What did we accomplish? www.pragmantic.com
  22. 22. First Visible Benefits Gain visibility and credibility Published portfolio of initiatives based on transparent rules and engage dialogue with business counterparts. Align Investments and human resources are aligned with business operational objectives Prioritize Score initiatives based on defined rules and get common understanding ENABLE DECISION MAKING– IT Governance www.pragmantic.com
  23. 23. What we plan to do? www.pragmantic.com
  24. 24. Your Next Steps On Monday morning Time to think from divers angles • 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 • helene.polain@lanexpert.ch • Subject: IT Governance Workshop www.pragmantic.com
  25. 25. Play the game www.pragmantic.com
  26. 26. Backup slides www.pragmantic.com
  27. 27. ValIT Management Practices VG1-4, Establish governance framework 6-7 VG5, 9-11 Provide strategic direction Establish portfolio parameters VG8 Maintain Maintain PM6 PM1-5 resource funding profile profile PM7-10 Evaluate & Move Manage Monitor & PM14 prioritize selected overall report on investments investments portfolio portfolio Identify business to active PM12-13 performance requests PM11 portfolio IM1-2 Define candidate Document Launch Manage Monitor on Retire programme business programme programme programme programme case execution performance IM3, 5-7 IM8,13 IM10 IM11-12 IM14 IM15 Analyse alternatives IM4 Assign accountability IM9 www.pragmantic.com
  28. 28. What have we covered today? VG1-4, Establish governance framework 6-7 VG5, 9-11 Provide strategic direction Establish portfolio parameters VG8 Maintain Maintain PM6 PM1-5 resource funding profile profile PM7-10 Evaluate & Move Manage Monitor & PM14 prioritize selected overall report on investments investments portfolio portfolio Identify business to active PM12-13 performance requests PM11 portfolio IM1-2 Define candidate Document Launch Manage Monitor on Retire programme business programme programme programme programme case execution performance IM3, 5-7 IM8,13 IM10 IM11-12 IM14 IM15 Analyse alternatives IM4 Assign accountability IM9 www.pragmantic.com

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