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Presentazione 04 iiba_bawi_2012_mega_michele ferrara

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BA e Application Portfolio Management, strumenti per l’ Operational Excellence
Michele Ferrara - MEGA International Italia

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Presentazione 04 iiba_bawi_2012_mega_michele ferrara

  1. 1. UNA Hotel Scandinavia – 15 Ottobre 2012BA e Application Portfolio Management,strumenti per l’ Operational ExcellenceMichele FerraraMEGA International Italia © International Institute of Business Analysis
  2. 2. MEGA International Leader in Business Process Analysis, Application Portfolio Management, Enterprise Architecture and Governance, Risk and Compliance  Company  Founded in 1991  Headquarters in Paris, France  8 subsidiaries  More than 2,400 customers worldwide  Named « Leader » by Gartner and Forrester (2011)  Key figures  300 people incl.130 consultants  30 M€ revenue in 2011  More than 600 consulting projects / 20,000 days per year 2 © International Institute of Business Analysis
  3. 3. Agenda APM Practice MEGA Approach  Inventory  Evaluation  Trasformation Implementation Conclusion 3 © International Institute of Business Analysis
  4. 4. APM Practice What is APM? Why is it critical? What is the added-value? What are the key concepts? © International Institute of Business Analysis
  5. 5. Application Portfolio Management Understand the application landscape to optimize costs, quality, risks, and value creation Manage the significant part (40% to 80% ) of IT budgets devoted to application maintenance and evolutions Collect and analyze information on applications deployed in operations Provide tools to help decision-making regarding application evolutions (remove, adapt, etc.) 5 © International Institute of Business Analysis
  6. 6. Application portfolio optimization is required Increasing complexity of the application landscape  applications developed to support new projects / new technologies  applications resulting from multiple mergers and acquisitions  heterogeneous standard software packages and “homemade” applications  complex geographically and organizationally distributed applications Increasing regulatory requirements Increasing needs for IT agility Operating within tight budget constraints 6 © International Institute of Business Analysis
  7. 7. APM Key Principles Only IT assets (application, technology, etc.) that have acceptable business value, cost, and associated risks are to be maintained ̶ What applications are… ̶ Not used? redundant? ̶ Requiring excessive maintenance costs? ̶ Running on obsolete technologies? ̶ Not supported in line with business requirements? ̶ ... ̶ What are the impacts of maintenance/suppression of these applications? 7 © International Institute of Business Analysis
  8. 8. APM Benefits Reducing costs and complexity of application portfolio Risk and compliance management Better investments that are better qualified Alignment of IT assets with business challenges Easier implementation of a complete and effective business continuity plan 8 © International Institute of Business Analysis
  9. 9. The MEGA Approach Inventory Evaluation Transformation © International Institute of Business Analysis
  10. 10. The MEGA Approach A long-term process 10 © International Institute of Business Analysis
  11. 11. Inventory Essential information Maintain up-to-date inventory © International Institute of Business Analysis
  12. 12. The APM cornerstone: the application Application ID Card: Key Criteria Functional & Data Technologies & General Information (Supported Components (ID, Age, Type …) processes, (Editor, versions …) capabilities …) Responsible Environments & Stakeholders Interfaces Hosting (Business owners, support, users ...) History Critical Information / (Incidents, decisions, Costs Risks / BCP recommendations …) 12 © International Institute of Business Analysis
  13. 13. The MEGA Information Model Strenghts: addresses the complexity of deployment o SAP HR has been used in Italy since 2010 for 3 functions: Payroll / Recruitment/ Evaluation o Germany will deploy Payroll in 2013 and Recruitment in 2014 o Payroll will be deployed in France in 2012, but will be adapted locally 13 © International Institute of Business Analysis
  14. 14. Evaluation Tools for decision-making: From assess to transform © International Institute of Business Analysis
  15. 15. Tools for decision-making Analysis of collected information allows to qualify applications 15 © International Institute of Business Analysis
  16. 16. Best practice : Assessing business value Example of a capability model A high level business architecture view allows you to describe what is needed (process/capabilities/organization) to fulfill corporate the mission and implement its strategy. 16 © International Institute of Business Analysis
  17. 17. Best practice : Assessing business value This simple model provides the ability to depict a reference framework for application knowledge and evaluations:  Enriching application landscape qualification and characterizing functional coverage of applications (identifying redundancies or automation requirements)  Aligning existing applications with business challenges  Providing information for evolution, investment and sourcing decisions (Cloud) Others can be used (processes,...) 17 © International Institute of Business Analysis
  18. 18. Best practice : Assessing costs The economic dimension is critical Cost categories (permanent and periodic)  Annual costs for maintenance of software and hardware  Potential costs of renting and insurance  Installations and migrations  IT asset procurement  Costs associated with hardware retirement  Etc. TCO : Total Cost of Ownership, common cost model Evaluation can be based on simplier models such as the Relative Cost of Ownership (reduced to the costs that are affected by application evolution 18 © International Institute of Business Analysis
  19. 19. Best practice : Assessing technical efficiency Rationalization and simplification of the application portfolio requires the optimization of technical components that support these applications (ex for MEGA APM : IIS, MEGA, ORACLE) Do existing technologies facilitate the implementation of simplifying operations and reducing costs while adhering to infrastructure standards? What are the risks associated with an obsolete technology? What are the risks associated with the end of support by one supplier? Are the technologies that are used compliant with the group recommendations as it relates to the technical framework? 19 © International Institute of Business Analysis
  20. 20. Transformation Applications lifecycle Transformation scenarios © International Institute of Business Analysis
  21. 21. Transformation Portfolio applications, as well as their technical components, evolve depending on certain needs in the context of:  Business projects  Technological opportunities  Maintenance requirements Each application, or even each version of an application, has its own lifecycle: from implementation to operation to retirement Evaluation also needs to integrate planned maintenance and transformation projects 21 © International Institute of Business Analysis
  22. 22. Transformation  In order to decide which actions to take, the CIO must:  Have a clear vision of the lifecycle of each application and its components  Develop scenarios based on changes to lifecycles related to the decisions made regarding applications (retirement, maintenance, etc.)  Have the ability to sort through requested projects and decide which are most important based on specific criteria (risks, costs, business value, etc.) among different transformation scenarios 22 © International Institute of Business Analysis
  23. 23. Analyze transformation scenarios Scenario : plan transformation initiatives Compare the different scenarios to make decisions Réponse aux attentes (axes stratégiques) Coûts dinvestissement Retour sur investissement (KEuros) Risque juridique (1-16) Risque humain (1-16) Couverture du SI Risque budgétaire (1-16) Scénario 1 Scénario 2 Impact sur la culture et Coûts de f onctionnement Scénario 3 lorganisation (1-16) (KEuros) 23 © International Institute of Business Analysis
  24. 24. Implementation © International Institute of Business Analysis
  25. 25. MEGA APM : an application portfolio conceptto organize transformation 25 © International Institute of Business Analysis
  26. 26. Conclusion © International Institute of Business Analysis
  27. 27. The MEGA APM Solution in a nutshellWeb / Independent / Pre-packaged (models, workflow, reports) 27 © International Institute of Business Analysis
  28. 28. THANK YOU!QUESTIONS?WWW.MEGA.COM © International Institute of Business Analysis

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