This document summarizes Salt River Project's use of Oracle's Primavera Portfolio Management software to help simplify their IT portfolio. SRP used the software to create an enterprise IT asset portfolio that provided transparency into their inventory of applications and infrastructure technologies. This allowed them to identify redundant functionality, assess asset value, and rationalize their portfolio. Their first rationalization process identified opportunities to reduce costs through consolidation and eliminating unsupported technologies.

1. Session 89260
Simplifying IT Using a Disciplined
Portfolio Governance Approach
Eileen Ahles

2. Abstract
Learn how Salt River Project, one of Arizona's largest utilities, utilizes
Oracle's Primavera Portfolio Management software to help them improve
management of their organization's IT portfolios (business applications
and infrastructure technologies). By identifying cost reduction and risk
mitigation opportunities, a continuing trend of IT simplicity has resulted
in improved IT standardization and modernization across the enterprise.in improved IT standardization and modernization across the enterprise.
Objectives:
• Learn how SRP got started with IT portfolio management.
• Hear about the results from using portfolio management to reduce IT
complexity.
• Discover lessons learned along the portfolio management journey.

3. Agenda
1. Background & Challenges
2. Governance Framework
3. Enterprise IT Asset Portfolio3. Enterprise IT Asset Portfolio
4. Portfolio Rationalization
5. Simplifying Business Continuity & DR Planning
6. Lessons Learned

4. BACKGROUND & CHALLENGES

5. SRP-History
In 1903, Salt River Valley Water Users’ Association was formed by
Arizona landowners
The National Reclamation Act of 1902 provided funding for the
construction of Roosevelt Dam
In 1909, a hydroelectric generator at the Theodore Roosevelt Dam site
was built
In 1937, the Association created the Salt River Project Agricultural
Improvement and Power District to operate the power generation and
distribution system.
The Association and District later became known as Salt River Project.

6. SRP-Today
Two companies serving metropolitan Phoenix:
• Public Power Company
• Private Water Management Association
Employees = 4,461Employees = 4,461
Annual Revenues = $2.7 billion
SRP has been honored by JD Powers as the top-rated
large power company in residential customer
satisfaction in the West for 11 of the past 12 years.

7. Challenges
SRP uses a decentralized IT support model
• Multiple Business Unit IT groups – as well as Corporate IT –
all at various levels of sophistication
• Redundant application functionality and duplication of• Redundant application functionality and duplication of
technologies
• No process to manage or prioritize technology requests
• Existing systems did not inform executives of enterprise IT
spend, making cost containment challenging.

8. IT Governance
Realization: If SRP continues to progress without a solid IT
strategy and IT governance framework, we risk service, cost,
and security obstacles.
Solution:Solution:
• In 2004, SRP launched an IT governance program.
• Our governance model blends business unit flexibility with
centralized facilitation

9. GOVERNANCE FRAMEWORK

10. Governance Hierarchy
• Approves:
• Architectures
• Enterprise IT standards and policies.
• IT initiatives for funding
• IT projects based on threshold levels
IT Leadership
Committee
(ITLC)
• Recommends: Enterprise strategies,
IT Architecture
• Recommends: Enterprise strategies,
goals, policies, architectures, standards
• Approves work/projects within a certain
impact on the enterprise.
IT Architecture
Committee
(ITAC)
• Information Governance Council
(IGC)
• Enterprise GIS Steering Committee
(EGIS)
Governance
Sub-Committees
(Standing & Ad hoc)

11. Governance Goals
Manage an Enterprise IT Asset Portfolio
• Include methods for maintaining an IT asset inventory,
monitoring its performance and assessing its value.
• Reviewing performance and value indicators of the IT
portfolio will drive the launch of projects for adjustments.portfolio will drive the launch of projects for adjustments.
Manage Project Initiation & Prioritization
• Processes for evaluating all IT projects to ensure risks,
resources and funding are mapped against corporate
priorities.

12. Solution
Oracle’s Primavera Portfolio Management (PPM)
• Acquired in Summer of 2005
• Components:
• Fast Track for Application Portfolio Management• Fast Track for Application Portfolio Management
• Fast Track for Project Portfolio Management
• Utilized professional services consulting for support and
oversight of implementation process
• Primavera Propose and Primavera Bridge for Microsoft
Project Server added at a later date.

13. The Portfolio Management Cycle
New Projects
Identify
Asset
Retire
Assets
Adjust
Launch New
Project/
Initiative
Adjust
Program
Portfolio
Launch New
Project/
Initiative
Design &
Develop
Solution
Implement
Solution
Assess
Value
New Assets
Asset
Improvements
Manage
Asset Usage
Assess
Asset Value
Assets
Adjust
Program
Portfolio
Initiative
Design &
Develop
Solution
Implement
Solution
Assess
Value
IT Portfolio Management Program
Evaluating - - Prioritizing - - Planning - - Communicating
Adjust
Program
Portfolio
Launch New
Project/
Initiative
Design &
Develop
Solution
Implement
Solution
Assess
Value

14. IT ASSET PORTFOLIO

15. Enterprise IT Asset Portfolio
Provides transparency into current inventory of
assets and resource consumption
• Identify & eliminate redundant / overlapping functionality
• Assess the condition of technology assets• Assess the condition of technology assets
• Quantify assets’ business value
• Aid strategic planning efforts
• Diffuse Business / IT conflict

16. Enterprise IT Asset Portfolio: Domains
Business Applications / End-User Solutions:
Software used to automate & optimize business functions,
processes, tasks, and activities.
Infrastructure Technologies:
Foundational technologies used to create and operate
business solutions and store / transmit information.

17. IT Asset Attributes

18. A Business Application’s
Infrastructure Dependencies

19. An Infrastructure Technology’s Supported Applications
.
.
.

20. Domain Specific Information
Business Applications / End-User Solutions
• Business Functions Supported
• Application Health Survey
Infrastructure Technologies
• Infrastructure Domain & Class
• Standards Classification

21. Application Classification by Functionality

22. Drill Down Capability for More Detail

23. Drill Down Capability for More Detail

24. Application Health Survey
• Technical Quality
• Criticality to the Business
• Platform Health• Platform Health
• Risks
• Total Cost of Ownership

25. Data Visualization Capabilities
Scorecard

26. Assessing Criticality

27. Data Visualization Capabilities
Investor Map

28. Gartner’s “TIME” Model for
Application Rationalization
Invest
Migrate
Tolerate
Invest
Eliminate

29. Infrastructure Classifications

30. Drill Down Capability for More Detail

31. Drill Down Capability for More Detail

32. Technology Standards
• Ensure interoperability of all elements of systems
• Economies of scale / lower procurement costs
• Simplify maintenance, support and asset management to
reduce total cost of ownership
• Creates an easier / faster path to procure and use items
designated as “Enterprise Standard”

33. Standards Compliance Pyramid
Low Risk / Flexible
Goal: 50 – 80%
Solutions
Infrastructure
App Development
High Risk / Restrictive
Goal: 90 – 100%
Shared Infrastructure / Service
Frameworks
Middleware
Data Management
Foundational Infrastructure
IT Operations / Systems Management
End-Point / Consumer Devices
Server Platform & Virtualization Technologies
Storage
Network
Security

34. Standards Waiver Example

35. PORTFOLIO RATIONALIZATION

36. Portfolio Rationalization Process
Our goal for our first rationalization process was to analyze
SRP’s IT portfolio in order to identify opportunities that:
• Reduce maintenance & support costs through
consolidation and/or decommissioningconsolidation and/or decommissioning
• Increase manageability by reducing the number of
technologies in use
• Decrease the risk of running on unsupported
technologies

37. FY10 Infrastructure Software & Hardware Costs
Application
Development
$1,840,938
Application
Development
$1,840,938
Application
End Point /
Consumer
Devices
$2,838,829
End Point /
Consumer
Devices
$2,838,829
Client
Devices
Data
Management
$2,211,243
Data
Management
$2,211,243
Database &
File
IT Operations
/ Systems
Management
$1,324,091
IT Operations
/ Systems
Management
$1,324,091
Change
Middleware
$1,196,599
Middleware
$1,196,599
Application
Network
$2,866,133
Network
$2,866,133
Host /
Remote
Security
$773,268
Security
$773,268
Identity
Mgmt &
Server
Platform
$2,568,808
Server
Platform
$2,568,808
Server
Devices
Storage
$2,227,247
Storage
$2,227,247
Storage
Devices
>= $1 Million $500,000 to $999,999 $100,000 to $499,999 < $100,000
Application
Construction
$922,018
GIS/CAD
$710,376
Programming
Languages
$48,648
Testing &
Debugging
Tools
$159,135
Web
Development
$762
Devices
$2,129,287
Client
Operating
Systems
$621,421
Client
Utilities
$88,120
File
Structures
$1,216,081
Data & File
Utilities
$740,410
Metadata
Management
$257,752
Change
Management
$300,224
Output
Management
$291,181
Performance
Management
$220,204
Production
Management
$340,347
Schedule
Management
$172,134
Application
Integration
$384,862
Application
Servers
$370,438
Data
Integration
$62,894
Messaging &
Telephony
$331,274
Web
Management
$47,130
Remote
Connectivity
$123,366
Network
Health
Management
$1,508,548
Network
Topology
$1,234,219
Mgmt &
Provisioning
$186,524
Protection
Health
$586,741
Devices
$1,311,881
Server
Operating
Systems
$1,024,902
Server
Management
Tools
$232,025
Devices
$1,490,949
Storage
Management
$736,297

38. Standards Compliance by Infrastructure Domain
RISKLEVEL
65%
56%
RISKLEVEL
75%

39. Applications by IT Support Group
Each bubble represents an application identified in the Portfolio Rationalization effort.
Yellow bubbles indicate that the application is transitional and is currently being migrated, upgraded
or has been identified to be retired.

40. Rationalization Results
• Identified approximately 150 applications at risk of running
on unsupported technologies
• Determined that there is significant redundancy in specific
functions
• Discovered almost $500,000 in budget reduction
opportunities by eliminating low use software
• Recommended the centralized management of software
licenses in order to capitalize on economies of scale

41. Strategic Initiatives Launched
• Application Modernization Multi-year Project
• Development of a Software Asset License Management &
Compliance program
• Implementation of Standard Enterprise Solutions
• Consolidation of Work & Asset Management Applications
• Infrastructure Systems Management Tools Analysis

42. SIMPLIFYING BUSINESS CONTINUITY &
DISASTER RECOVERY PLANNING

43. Simplifying Business Continuity &
Disaster Recovery Planning
• Partnered with SRP’s Business Continuity & Emergency
Management department
• Used Primavera Portfolio Management’s capabilities to link• Used Primavera Portfolio Management’s capabilities to link
Key Business Processes to Applications
• This information is used to define critical applications and
subsequent disaster recovery requirements
• Developed list of applications with a recommended tier of
recovery

44. Cost Center
Dependencies & Relationship
Work Initiation
&
Prioritization
Infrastructure
Technology
Business
Process
Business
Application &
End User Tools

45. Cost Center IT Footprint
Lists:
• Business Applications
• Infrastructure Technologies
• Work Initiations• Work Initiations
• Business Processes

46. Cost Center IT Footprint

47. Cost Center IT Footprint

48. LESSONS LEARNED

49. Lessons Learned
• IT Portfolio Management data and analysis processes can be a
powerful tool for:
• Providing information for decision making
• Reducing risk by managing technology life-cycle, health, cost,
and value
• Management support is essential for championing the processes and
gaining buy-in.
• Communicating your efforts and analysis results is very important!
• SRP’s adoption has evolved over the years and continues to evolve.
• Be flexible!

50. Recommended Reading
IT Portfolio Management: Unlocking
the Business Value of Technology
Authors: Bryan Maizlish & Robert HandlerAuthors: Bryan Maizlish & Robert Handler

51. They say the world has become too complex for
simple answers. They are wrong.
-Ronald Reagan