Semantech Inc. 2008 - Lecture Series The New PLM: Program Lifecycle Management (facilitating enterprise integration & empowering the ePMO) Presented by Stephen Lahanas Principal Consultant, Semantech Inc. Feb 12th, 2008 Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

Introduction This presentation introduces a new, overarching IT methodology designed to support the Enterprise Program Management Office or ePMO - Program Lifecycle Management (PLM). This new Methodology recognizes the need to fuse multiple processes in order to present a holistic view of enterprise capabilities and activities. We will explore both the process and automation solution that comprise the practice of PLM. I Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

Introduction

This presentation introduces a new, overarching IT methodology designed to support the Enterprise Program Management Office or ePMO - Program Lifecycle Management (PLM).

This new Methodology recognizes the need to fuse multiple processes in order to present a holistic view of enterprise capabilities and activities.

We will explore both the process and automation solution that comprise the practice of PLM.

Problem Statement – What Causes IT failures? A lack of clarification and mutual agreement on detailed functional requirements. A lack of traceability of detailed technical requirements back to the functional requirements. Ineffective automation support software & proliferation of such tools (for development, management, communication) without integration into ePMO processes. Inability for rapid response to both technical and organizational issues or crisis. Insufficient coordination of support data (no central Knowledge Base, no data integration). Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

Problem Statement – What Causes IT failures?

A lack of clarification and mutual agreement on detailed functional requirements.

A lack of traceability of detailed technical requirements back to the functional requirements.

Ineffective automation support software & proliferation of such tools (for development, management, communication) without integration into ePMO processes.

Inability for rapid response to both technical and organizational issues or crisis.

Insufficient coordination of support data (no central Knowledge Base, no data integration).

What is Program Lifecycle Management ? It is a “Lifecycle of Lifecycles,” in other words a Lifecycle specifically designed to encompass and support the full range of elements that constitute an enterprise IT environment. It is not meant to replace the other PLMs, but rather to unify them within the context of the ePMO and the enterprise itself: Portfolio Lifecycle Management Project Lifecycle Management Product Lifecycle Management PLM provides a unified data framework upon which all ePMO processes can be automated & integrated. I Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

What is Program Lifecycle Management ?

It is a “Lifecycle of Lifecycles,” in other words a Lifecycle specifically designed to encompass and support the full range of elements that constitute an enterprise IT environment.

It is not meant to replace the other PLMs, but rather to unify them within the context of the ePMO and the enterprise itself:

Portfolio Lifecycle Management

Project Lifecycle Management

Product Lifecycle Management

PLM provides a unified data framework upon which all ePMO processes can be automated & integrated.

Process Fusion C=P n Complexity can be described as the management of a multitude of variables; however the more accurate description ‘is the management of many variables across multiple process lifecycles. A single process, managed properly may exist within a larger failed project. Several successful processes may fare no better – in fact all of an organization’s processes when viewed individually may appear successful, yet the enterprise itself may be failing miserably. Why? No enterprise requires just one process, no one process can be viewed as a stovepipe or separate from the others. Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

Process Fusion

C=P n Complexity can be described as the management of a multitude of variables; however the more accurate description ‘is the management of many variables across multiple process lifecycles.

A single process, managed properly may exist within a larger failed project. Several successful processes may fare no better – in fact all of an organization’s processes when viewed individually may appear successful, yet the enterprise itself may be failing miserably. Why?

No enterprise requires just one process, no one process can be viewed as a stovepipe or separate from the others.

A Practice Requires a Methodology PLM is an agile practice. That requires a flexible, adaptable and responsive methodology. PLM is designed for automation, but it still depends on human action, intuition and common sense. A lifecycle of lifecycles itself has no clear beginning or end – it represents continuous oversight and mitigation. The enterprise is evolutionary in nature, it is not constrained nor managed solely through finite projects. The relationships and synergy between dozens or hundreds of enterprise lifecycles is where PLM as a methodology focuses much of its attention… Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

A Practice Requires a Methodology

PLM is an agile practice. That requires a flexible, adaptable and responsive methodology.

PLM is designed for automation, but it still depends on human action, intuition and common sense.

A lifecycle of lifecycles itself has no clear beginning or end – it represents continuous oversight and mitigation. The enterprise is evolutionary in nature, it is not constrained nor managed solely through finite projects.

The relationships and synergy between dozens or hundreds of enterprise lifecycles is where PLM as a methodology focuses much of its attention…

Focus on Requirements Requirements are enterprise DNA. Everything in the enterprise can be related to requirements – they provide the traceability fabric for all activities and capabilities. Requirements represent expectations; for capability, service and performance. Not all requirements are captured, this is why in many enterprises it is difficult to determine why & how money is being spent. Without traceability, there cannot be accountability. Financial information without context, is meaningless. Requirements provide the context. Requirements management is not a standalone process; however it is the “enterprise nexus.” Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

Focus on Requirements

Requirements are enterprise DNA. Everything in the enterprise can be related to requirements – they provide the traceability fabric for all activities and capabilities.

Requirements represent expectations; for capability, service and performance. Not all requirements are captured, this is why in many enterprises it is difficult to determine why & how money is being spent.

Without traceability, there cannot be accountability. Financial information without context, is meaningless. Requirements provide the context.

Requirements management is not a standalone process; however it is the “enterprise nexus.”

Requirements Taxonomy There are a variety requirement classes, understanding these is key in supporting the automation of PLM: Strategic Requirement – General or high level view of desired capability or service, may encompass one or more functional requirements. Functional Requirement – More specific description of functional need made by functional experts, may include one or more technical requirements. Technical Requirement – This expresses functional needs in technical terms but does not fully express all design elements. May include one or more design requirements. Design-Level Requirement – The atomic, detailed view. Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

Requirements Taxonomy

There are a variety requirement classes, understanding these is key in supporting the automation of PLM:

Strategic Requirement – General or high level view of desired capability or service, may encompass one or more functional requirements.

Functional Requirement – More specific description of functional need made by functional experts, may include one or more technical requirements.

Technical Requirement – This expresses functional needs in technical terms but does not fully express all design elements. May include one or more design requirements.

Design-Level Requirement – The atomic, detailed view.

Process Inventory There are many enterprise processes to consider: Asset Management (AM) Customer Relationship Management (CRM) Strategic Management (SM) Innovation Management (IM) Requirements Management (RM-1) Configuration Management (CM-1) Change Management (CM-1) Earned Value Management (EVM) Risk Management (RM-2) Project Management Portfolio Management EA Management Semantic Integration SOA Governance Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

Process Inventory

There are many enterprise processes to consider:

Asset Management (AM)

Customer Relationship Management (CRM)

Strategic Management (SM)

Innovation Management (IM)

Requirements Management (RM-1)

Configuration Management (CM-1)

Change Management (CM-1)

Earned Value Management (EVM)

Risk Management (RM-2)

Project Management

Portfolio Management

EA Management

Semantic Integration

SOA Governance

PLM is Governance A tremendous amount of attention has been placed upon IT governance over the past few years. There are differing opinions though as to what governance actually means or how it is conducted. Governance, in its simplest form, refers to the management of processes – a process that manages other processes thus represents a governing activity. It consists of rules, policy and guidelines, continuously validated and evolving. PLM is the one toolset that empowers effective governance across the enterprise – all other approaches view governance in narrow perspectives. Governance of SOA alone, or Portfolios or Architecture alone will not provide the enterprise with holistic oversight. Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

PLM is Governance

A tremendous amount of attention has been placed upon IT governance over the past few years. There are differing opinions though as to what governance actually means or how it is conducted.

Governance, in its simplest form, refers to the management of processes – a process that manages other processes thus represents a governing activity. It consists of rules, policy and guidelines, continuously validated and evolving.

PLM is the one toolset that empowers effective governance across the enterprise – all other approaches view governance in narrow perspectives. Governance of SOA alone, or Portfolios or Architecture alone will not provide the enterprise with holistic oversight.

PLM & Innovation There are many cases when the enterprise must embrace innovation. These situations are most often related to transformations, new capability development or the reconciliation of disruptive technologies. For innovation to succeed though with any sort of regularity it must be managed, and managed within the context of the rest of the enterprise. PLM provides that context by integrating innovation into the holistic set of enterprise processes. Innovation represents a potential entry point into the front end of our meta-lifecycle; it compliments strategy, planning and design activities. It also represents an opportunity to shake out critical requirements issues early… Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

PLM & Innovation

There are many cases when the enterprise must embrace innovation. These situations are most often related to transformations, new capability development or the reconciliation of disruptive technologies.

For innovation to succeed though with any sort of regularity it must be managed, and managed within the context of the rest of the enterprise. PLM provides that context by integrating innovation into the holistic set of enterprise processes.

Innovation represents a potential entry point into the front end of our meta-lifecycle; it compliments strategy, planning and design activities. It also represents an opportunity to shake out critical requirements issues early…

A view into innovation – it represents “creativity with context”…

PLM & The Portfolio Portfolio Management for IT is similar to financial portfolio management in its attempt to portray the overall health of all elements within a certain portfolio. However it is still somewhat fixated on financial health. Portfolio Management is also focused more on the top level view of what’s going on and is seldom able to drill down to the appropriate level of detail to really know why something is occurring. While many have tried to extend this practice outwards to encompass holistic IT oversight it is not suited for that role. The system level view is too general and doesn’t support the analytics that are required. Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

PLM & The Portfolio

Portfolio Management for IT is similar to financial portfolio management in its attempt to portray the overall health of all elements within a certain portfolio. However it is still somewhat fixated on financial health.

Portfolio Management is also focused more on the top level view of what’s going on and is seldom able to drill down to the appropriate level of detail to really know why something is occurring.

While many have tried to extend this practice outwards to encompass holistic IT oversight it is not suited for that role. The system level view is too general and doesn’t support the analytics that are required.

PLM & The Project Every project must begin with accurate estimates. This usually occurs through use of a Work Breakdown Structure (WBS) / estimate and a project schedule. Some work does not follow a traditional project schedule though, these tasks tend to fall under maintenance or sustainment categories. This work must still be tracked. Resource management in itself portrays an incomplete picture – we know who is doing what, but not how well, or what exactly the “what” is in detail. This also has critical cost implications. PLM binds projects together into a unified context. Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

PLM & The Project

Every project must begin with accurate estimates. This usually occurs through use of a Work Breakdown Structure (WBS) / estimate and a project schedule.

Some work does not follow a traditional project schedule though, these tasks tend to fall under maintenance or sustainment categories. This work must still be tracked.

Resource management in itself portrays an incomplete picture – we know who is doing what, but not how well, or what exactly the “what” is in detail. This also has critical cost implications.

PLM binds projects together into a unified context.

PLM & Integrated Enterprise Metrics Metrics are key elements within any governance approach – the two most familiar metric constructs are Key Performance Indicators (KPIs) and Measures of Effectiveness (MOEs). They are however very similar. The main idea is being able to assign expectations to requirements in advance of developing, deploying or sustaining capabilities or services. Metrics can be built into acquisition planning, service level agreements and enterprise standards. Enterprise standards & metrics are often captured in the EA & related governance processes, however these are seldom coordinated across the entire spectrum of enterprise efforts. Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

PLM & Integrated Enterprise Metrics

Metrics are key elements within any governance approach – the two most familiar metric constructs are Key Performance Indicators (KPIs) and Measures of Effectiveness (MOEs). They are however very similar.

The main idea is being able to assign expectations to requirements in advance of developing, deploying or sustaining capabilities or services.

Metrics can be built into acquisition planning, service level agreements and enterprise standards.

Enterprise standards & metrics are often captured in the EA & related governance processes, however these are seldom coordinated across the entire spectrum of enterprise efforts.

Conclusion PLM is the enterprise big picture, until we achieve that unified view, we can expect certain traditional efficiencies associated with Program Management Offices to continue. PLM allows us for the first time to share a single management automation platform and semantic model for the organization all program information. PLM is a practice, a methodology, a technology and a meta-integration engine. PLM is pragmatic and involves everyone, not just managers I Copyright 2008, Semantech Inc. – All Rights Reserved http://www.semantech-inc.com

Conclusion

PLM is the enterprise big picture, until we achieve that unified view, we can expect certain traditional efficiencies associated with Program Management Offices to continue.

PLM allows us for the first time to share a single management automation platform and semantic model for the organization all program information.

PLM is a practice, a methodology, a technology and a meta-integration engine.

PLM is pragmatic and involves everyone, not just managers

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