The document discusses application portfolio management (APM) and rationalization. It provides an overview of APM, how it can help manage applications from a strategic perspective, and structure rationalization decision making. It then discusses CA Technologies' perspective on APM, including registering applications, rationalizing based on business/technical fit, evaluating applications based on criteria like cost and risk, and identifying portfolio transformation requirements. The document also includes sections on APM drivers/triggers, features of CA's APM product, how APM relates to their business service intelligence (BSI) product, and a roadmap for the APM product.

1. Application Portfolio
Management
David Messineo
CA SPM Product Management

2. Target Audience
2
CFO
Finance
CIO
IT Manager
Service
Providers
How do we
balance value,
agility, quality
risk and cost?
How do we
make the best
IT investments?
Can IT
support
Our Business
Strategy?
Service Delivery Manager
Supplier Manager
Quality Manager
Procurement
How do we
meet
customer
expectations
continuously?
Chief Architect
Operations Manager
How do I
maintain a
flexible, effective
architecture?

3. Application Portfolio Management (APM) focus on providing value to
customers by supporting the following proof points:
 Management of applications, services, and projects from a strategic
portfolio perspective
 Ability to transition from existing portfolio to new portfolio based on fit for
purpose along business, financial, operational, and technical perspectives
 Structure the rationalizing decision making process and ensuring proper
governance
 Managing strategic investments through better sourcing, transparency, and
performance tracking
APM - Problem Definition
3

4. Operations
Maintenance
Operations
Support
Applications
Support
Applications
Enhancement
New
Applications
Total Cost of
Supporting
Applications &
Operations
TODAY TARGET
Operations
Maintenance
Operations
Support
Applications
Support
Applications
Enhancement
Strategic
Solutions
Strategic
Capacity
Direct
Savings
Rationalization – The search for effective investments
4
Existing
Application
Portfolio
Future
Application
Portfolio
Capture Categorize Evaluate Select Transition

5. Rationalization
Key challenges of managing application value
 Maintaining Catalog
 Categorization
 Business Fitness
 Infrastructure Sprawl
 Personnel Skills
 Architecture / Infrastructure
 Integration Capabilities
 Economic Efficiency
 Developmental Enhancements
 Security Risks
 On-going Availability
 Organizational Priority
5

6. Application Portfolio Management (APM)
- A CA Technologies Perspective
 Step I – Register applications in target environment. Discover and/or document the necessary background meta
data for each application for assessing the various rationalization strategies.
 Step II – Rationalize based on business and technical fit. Mapping and Chunking. Applications are grouped into
logical categories with business meaning. Dependencies and linkages are established among resources to document
their interrelationships.
 Currently this generally involves creating application ‘suites’ and mapping into business processes (e.g. for application rationalization)
 Eventually this will involve create application ‘suites” and grouping applications by architecture (e.g. for infrastructure rationalization).
 Step III – Evaluate based on identified criteria (e.g. risk, cost, etc). Costs and risks for each application are allocated
by grouping. Users and key stakeholders for each application are surveyed to identify their relative importance and
priority to the strategic goals of the organization. Survey results are related to organizational financials and risk
objectives to determine ratings (i.e. scoring).
 Portfolios are constructed and evaluated on the basis of cost, asset values, usage, financial return, strategic importance and other
defined objectives.
 Rationalization strategies are evaluated to determine the optimum approach using a combination of cost benefit analysis, portfolio
optimization, risk assessment and financial impact.
 Step IV – Identify Portfolio Transformation requirements. Layout the appropriate programs and supporting projects
to transition the old portfolio to the new portfolio.
 Programs and Projects should include the appropriate resource plan, investment schedule, and cost controls.
Register
applications in
targeted
environment
Rationalize
based on
business and
technical fit
Evaluate based
on identified
criteria (e.g.
risk, cost, etc)
Identify
Portfolio
Transformation
requirements
6

7. APM Drivers / Triggers Based Analysis
(Examples)
Drivers Triggers {s=strategic, o=operational} Rationale Role
Merger & Acquisition • Redundant Business Processes {o} • Align Processes • Portfolio Planner / Business Analyst
Demand Management • Resource Shortages {o}
• Conflicting Priorities {s, o}
• Workload Effectiveness
• Organizational Prioritization
• CIO / Project Manager / Resource Mgr
• Business Analyst / Resource Mgr
Enterprise Architecture • Process / Service Requirements {s}
• Platform Capabilities {s}
• Outdated Technology {o}
• Resource Utilization
• Align Processes
• Improve Agility
• Architectural Standardization
• Capacity Turnover
• Business Analyst / Chief Architect
• IT Applications Mgr
• Infrastructure Mgr
• Infrastructure Mgr / Chief Architect
Cost Determination
(Financial Performance)
• Business Requests {s, o}
• IT Requests {o}
• Cost Recovery {o}
• Improve Agility
• Optimize SLA
• Business Value
• CIO / Business Mgr
• Business Analyst / Chief Architecture
• IT Finance Mgr / Portfolio Mgr
Vendor Consolidation • Opportunities (Supply Chain) {s,o}
• IT Staff Right Sourcing {s,o}
• Align Processes
• Capacity Turnover
• Business Mgr / Analyst
• CIO / Business Mgr
Cost Reduction
(Financial Performance)
• Total IT Investment {s,o}
• License Renewals {o}
• Redundant applications {o}
• Business Value
• Reduce Costs
• Reduce Costs
• Business Mgr
• IT Finance Mgr / IT App Mgr
• Portfolio Planner / IT App Mgr
Risk Reduction • Security Issues {o}
• Performance Issues {o}
• Stability Issues {o}
• Operational Issues {o}
• Business Complaints {o}
• Risk Reduction
• Workload Effectiveness
• Risk Reduction
• Risk Reduction
• Optimize SLA
• CIO / Chief Architect
• Chief Architect / IT App Mgr
• IT Applications Mgr
• Infrastructure Mgr
• Business Manager
Technology Consolidation • Architectural Complexity {o}
• Technology Spend {o}
• Business and IT Risk {o}
• Improve Agility
• Resource Consolidation
• Risk Reduction
• Chief Architect
• IT Finance Mgr
• Business Mgr / Analyst
Work Management • Ratio Planned / Unplanned Work {o}
• Environment Monitoring {o}
• Reduce Costs
• Workload Optimization
• IT App Mgr / Project Mgr / Resource Mgr
• Infrastructure Mgr
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8. marquee features
– based on APM 1.1
Best Practice
Industry
KPI’s
Application
Discovery &
Automated Data
Collection
Operational
PlanningPortfolio
Transformation
(Scenarios)
Performance
Monitoring
fastAPM Wizard
And
Reporting /
Dashboards
Library of KPI’s
that are already
tied to BSI for
quick
deployment
Performance and
usage data
collected and fed
to portfolio
automatically
Portfolio’s tied to
business
planning around
Services and
Applications
Automated
discovery of
Services and
Applications and
linkages
Role based
Rationalization
analysis based on
pre-configured
optimizations

9. Looking a Rationalization Holistically
9

10. product roadmap
– Application Portfolio Management (APM)
20152012 2013 2014 2016
ExistingPlannedUnderConsideration
CY
• Productize Cloud Compass
• Content Based Solution
• Built on Clarity 13
• Easy install & setup
• Clarity Feature Enhancement
• Portfolio Mgmt Capabilities
• Integrated Project / Program Mgmt
• BSI APM Content
• Usage (SCM, Accounting)
• Performance (Nimsoft)
• Application / Service Dependency
• Troux Integration
• Advanced Scenario Management
• Reliability Index
• Analysis – Improve Agility
• Analysis – Align Processes
• Analysis – Work Effectiveness
• Integration with BSI
• BSI APM Content
• Usage (Clarity, Catalog)
• Performance (USD, SOI,
Wily APM)
• FastAPM Wizard
• Enhanced Discovery capability
• Application / Service Dependency
• CMDB
• Scenario Planning
• Analysis – Cost Reduction
• Analysis – Risk Reduction
• Analysis – Tech Standardization
• Clarity On-Demand Enablement
(with BSI)
• First full APM release
• Clarity Content Base
• Application Discovery / Clustering
• Application & Service Portfolio
• Portfolio Scoring
• Application Dependency (Manual)
• Analysis – Cloud Migration
• Analysis – Business Fit
• Analysis – Redundancy
• Clarity On-Demand Enablement
• Cloud Compass
• APM (EMEA), APM (APJ),
• Plan Build Run
• Clarity Feature Enhancement
• Solution Integration
• Unified Demand Mgmt
• Automated Fitness Analysis
• Automated Risk Analysis
• Automated Project Creation
• Analysis – Organizational Prioritization
• Analysis – SLA optimization
• Analysis – Capacity Turnover

11. project context
– APM & BSI
Clarity
Service
Desk
Service
Catalog
Service
Accounting
Clarity SOI
HwAM/
SwAM
Wily
APM
Quality
Work
SLA’s
Costs
Services
Apps
Delivery
SLA’s
Revenue
Costs
Services
Quality
SLA’s
Metering
Costs
Services
Profile
Work
Costs
SMI
Services
Apps
Quality
Availability
Services
Quality
Response
Services
Apps
BSI
Contracts
Costs
Apps
InformationSources
Tech Complexity
Volatility
Domain Skills
Interfaces
Scalability
Costs
Business Fit
Biz Complexity
Details
Clarity
Attributes
APM
(Rationalize)
Commits
Contracts
SLA’s
SCM
Quality
Work
Apps
BSI
Performance
DatabasePortfolio
Plan & Build Build & Run

12. Clarity / BSI Interplay
Create
Application
Create
Service
Create
Portfolio
Create
Contract
Identify
Attributes
Map
Attributes
to Metrics
Assign
Metrics to
Contract
Rationalize
Portfolio
Collect Raw
Performance
Data
Calculate
Metrics
Create
Projects to
Execute
Plan
Create
Portfolio
Future
State
Move
Metric Data
to Clarity
MDR MDR MDR
Track
Portfolio
Performance
Identify
SLA
Violations
Track
Project
Performance
CLARITY
BSI
Resource
Model
Capture
SMI Survey
Info

13. Continuous Improvement
Rationalization Maturity Model
LEVEL 0 - Initial
Manual Process
•Process Defined
•Portfolio Info Collected
•Classifications Defined
•Roles and Ownership
Identified (RACI)
•Data Collection
•Investment Criteria
Identified
LEVEL 1 - Active
Limited Automation
•Leverage Portfolio Mgmt
System
•Portfolio, Rationalization,
Investment, and Risk
Models Defined
•Information Model
Defined by Portfolio Type,
Driver Type, and
Rationalization Type
•Automated Data
Collection
LEVEL 2 - Efficient
Formal Process
•Performance Information
Collected
•Continuous
Rationalization Process
•Benefits Identified and
Tracked to
•Automated Computations
for Various Models
•Automated Prioritization
Based on Defined Fitness
Functions
•Policy Management (&
Gap Identification)
•Minimal Enterprise
Architecture Information
LEVEL 3 - Optimized
Scenarios &
Predictive Performance
•Industry Centric
Standardized KPI’s
•Model Prediction and
Planning Optimized
•Performance Goal
Tracking (Planned vs.
Actual)
•Automated Model
Adjustments
•Advanced Constraints
•Optimization
•Automated Risk Analysis
LEVEL 4 – Biz Driven
Automated
Recommendations
•Measure the Effectives of
the Rationalization
Process
•Automated
Rationalization
Recommendations
•Automated Investment
Options
•Integrated Enterprise
Architecture
•Portfolio Leveling (by
investment, strategic fit,
risk, etc…)
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