The document discusses managing and transforming application portfolios to support business growth. It emphasizes that application portfolio management (APM) is an ongoing process, not just managing, and should lead to activities that transform the portfolio. APM requires creating transparency about the existing portfolio, defining appropriate metrics, and using insights to drive changes like deciding applications' fates and creating IT modernization roadmaps. Software AG's enterprise architecture solution can help with the entire APM process.

1. Transform Your Application Portfolio –
and Keep Your Focus!
Patrick Buech, Software AG

2. December 13, 2012 | 2
Laws and regulations
Laws
Guarantees Customers
Compliance requirements Customer satisfaction
Risk management Product and service quality
Internal controls Response and delivery times
Market segmentation
IT is not only supporting Individualization
the business, IT is the
change agent of the
Information technology trends
SOA and business services business!
IT security/
standardization Free market economy
Cloud/Mobile/Social Competition
Cooperation
Consolidation
Economical climate
Speed of innovation

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The Challenge with IT Portfolios
Business Support Business
Growth
Keep-the-lights-on Strategy
Technology
Demands
Innovation
IT
IT Portfolios
...
Technologies
As-Is
Applications
Just doing nothing automatically
leads to increased costs

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Manage and Transform Portfolios to support Business Growth
Business Support Business
Business
Growth
References, Principles, Policies • Agility
• Efficiency
Technology
Demands • Innovation
Innovation
• Growth
IT IT Portfolios volatile
To-Be
... ... ... ...
Technologies Technologies Technologies Technologies
As-Is
Applications Applications Applications Applications
ROADMAP
Key questions: Milestone 1 Milestone 2
• How long? Project
• What do I have to do? Operationalized through Portfolio
• How much? Projects and Programs Management

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The Result:
- I needed much longer than
expected!
- When I arrived I was totally
exhausted and my appearance
was pretty poor.
The Bottom Line:
- I was not that as well informed
as I thought
Roadmap2MyCustomer!
- My decisions were based on that
poor level of information

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Lesson Learned from the “Paris Incident”
• Good decisions are based on a good
level of information!
• Keep the goal (area) in focus, at all
times!
• Be prepared for the unexpected rather
than go after a fixed roadmap!
This is valid for all kind of roadmaps.
As well as for
IT Modernization Roadmaps!

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IT Modernization Roadmaps
• Describe the transformation of the
application landscape
• Describe the execution of decisions which
are an outcome of a process called
Application Portfolio Management (APM)
Challenges
Retire Enhance
• IT modernization roadmaps describe the
ideal world (plan vs. reality)
• IT modernization roadmaps execute not Replace Maintain
only rational decisions but also political
decisions

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Application Portfolio Management –
Means different Things to different People!
Why APM?
• A ‘Keep The Lights On’ strategy eats up IT budgets and eliminate the
ability to support business innovation and growth
• New applications intensify the biggest problem:
A growing not controllable application portfolio
APM in a nutshell
• Build the transparency and metric that
guide to good decisions regarding the
transformation of the application portfolio
• APM leads into reliable IT modernization roadmaps
• APM is a process!

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The Process of Application Portfolio Management in Four Steps
Create Define and Gather Use Insight and Modernize
Transparency Metrics Drive Change
Decide on fate of the
For example costs, Analyze, assess,
Build an inventory of the application, create IT
business support, usage, evaluate, optimize,
application portfolio modernization roadmaps,
criticality rationalize
execute them
Some questions to think about:
• What applications • Which kind of • What analytics are • Who has the
are in scope? metric is needed? decision-making
• What level of necessary? • What viewpoints power about the
detailed • What can be are needed? fate of the
information is collected? applications, IT
• Who is involved? budgets and
necessary? • How is the metric • Who else needs investments?
• Where to start? been used? this information?
• What are the • How is it been • What else can be
goals of this updated? answered?
initiative?

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Enterprise Architecture
answers questions
from stakeholders from
business and IT!
• How do I get from A to B?
• What‘s the impact of…?
• How much effort is…?
• What are the next steps?
• How much time do we need?
• How much cost do we have?
• Who is responsible for?

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Software AG‘s Solution for Enterprise Architecture
The fully integrated EA solution combines the market-leading software,
along with proven methodology, best-practices and expertise.
Analyze, optimize, plan and manage your enterprise
Synchronize IT change with business needs
Create the right roadmap for your business products, services and
solutions
Harmonize and standardize IT portfolios
Define and track your enterprise-wide standards
Optimize your IT budget and risk management
Support business process analysis, requirements
engineering, solution development, service,
application and technology portfolio management
- and more

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Capabilities

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Application Portfolio Management –
Where Software AGs Enterprise Architecture Solution can help
Create Define and Gather Use Insight and Modernize
Transparency Metrics Drive Change
Decide on fate of the
For example costs,
Build an inventory of the Analyze, assess, evaluate, application, create IT
business support, usage,
application portfolio optimize, rationalize modernization roadmaps,
criticality
execute them
Application Code, Data,
Environment (automatically
gathered by application
mining tools, CMDB, Natural
Engineer,…)
Questionnaires,
Stakeholder Surveys
(manual data collection)
Customer Information Systems
e.g., ARIS IT Inventory

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Publish, Document, Manage, Collaborate – Some examples

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Application Portfolio Management –
Where Software AGs Enterprise Architecture Solution can help
Create Define and Gather Use Insight and Modernize
Transparency Metrics Drive Change
Decide on fate of the
For example costs,
Build an inventory of the Analyze, assess, evaluate, application, create IT
business support, usage,
application portfolio optimize, rationalize modernization roadmaps,
criticality
execute them
Application Code, Data,
Environment (automatically
gathered by application
mining tools, CMDB, Natural
Engineer,…)
Questionnaires,
Stakeholder Surveys
(manual data collection)
Customer Information Systems
e.g., ARIS IT Inventory

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Design, Architect, Plan, Transform – Some Examples

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Outlook ARIS 9 – Two top features to support the APM process
ARIS spreadsheets – combine ARIS
artifacts with other data, calculate
and annotate. Design templates for
Spreadsheets better results.
Comprehensive ad-hoc analysis,
content browsing and evaluation of
New Analytic the ARIS repository independent of
Capabilities any ARIS model definition.

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Analyze, Control, Decide - EA Dashboards

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Application Portfolio Management –
Where Software AGs Enterprise Architecture Solution can help
Create Define and Gather Use Insight and Modernize
Transparency Metrics Drive Change
Decide on fate of the
For example costs,
Build an inventory of the Analyze, assess, evaluate, application, create IT
business support, usage,
application portfolio optimize, rationalize modernization roadmaps,
criticality
execute them
Application Code, Data,
Environment (automatically
gathered by application
mining tools, CMDB, Natural
Engineer,…)
Questionnaires,
Stakeholder Surveys
(manual data collection)
Customer Information Systems
e.g., ARIS IT Inventory

20. December 13, 2012 | 20
Excursion:
The Quadrant Approach to Application Portfolio Management
The concept of the application portfolio was first described as a Strategic
Grid that demonstrated the importance of IT to the business in 1983 by
McFarlan, McKenney and Pyburn in the Harvard Business Review’s “The
Information Archipelago – Plotting a Course.”
The idea: Classify applications into four
quadrants to document the strategic
relevance of the application to the business.
1.Strategic. Business depends on application for
competitive advantage.
2.Turnaround. Business expects that the
application will be strategically relevant in
the future.
3.Support. Business sees no strategic value in
the application.
4.Factory. Business sees strategic value now,
but predicts that this will disappear in the
future.

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Application Portfolio – Example I:
Decide on fate of the Applications
Retire Enhance
Replace Maintain

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Application Portfolio – Example II:
Strategic Business Importance
Remarks
• Define the categories
that matter to your
goals
• Automatic generation
would be nice but
politics makes it hard
to do
• Analytics are needed
to make reliable
decisions
• Impact of decisions
needs to be analyzed

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Application Portfolio – Example III:
Automaticly Generated (Application) Portfolios

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IT Modernization Roadmap
Remarks
• Manage application
roll-outs over time
based on processes,
organizations and
locations
• Define application
standards based on
the process landscape
• Manage and roll out
these local and/or
global application
standards
• Generate and
simulate different
time based viewpoints
based on an analysis
date

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Analyze Impacts of the Application Portfolio on
IT Modernization Roadmaps

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Enterprise Architecture Dashboards I

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Enterprise Architecture Dashboards II

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IT Modernization Roadmaps and Project Portfolio Management –
The tricky Link between Plan and Reality
Project Portfolio
Management
Tool

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Summary & Recommendations
• Although it is seen very often as project based, APM is an ongoing
process which should be installed permanently in the organization!
• APM does not mean managing only, it has to lead into activities to
transform the application portfolio!
• Transparency is key – but be wise where you begin to address
transparency!
• Start with a clear definition of goals – Remember: APM means different
things for different people!
• Software AGs EAM Solution provides a powerful
metadata repository and a robust set of features
to leverage APM!
• Drive IT Modernization activities with Software AG!
Move away from just “keeping-the-lights-on” and
start to actively support strategic business growth!

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Questions?
Patrick Buech
patrick.buech@softwareag.com
http://www.softwareag.com/ea

31. Thank you