UMT360 CEO Mike Gruia explores what investment digitalization really means for the future of the CIO. In the presentation he addresses roadblocks to digitalizing IT investments and breakthrough EPM digital business models. May 29, 2014 - see the webinar at http://bit.ly/1jNojI1

1. Complete Perspective. Smart Decisions.
www.UMT360.com
@UMT360
LinkedIn.com/company/umt360/
How CIOs Take Control of IT Investments
with Integrated Portfolio Management
Key Issues Shaping CIO Investment Strategies
Mike Gruia, UMT360 CEO

2. Complete Perspective. Smart Decisions.
The Key to Growth – Go Digital
Labor Productivity
Technology is a gift
of God. After the gift
of life it is perhaps
the greatest of God's
gifts. It is the mother
of civilizations, of
arts and of
sciences." —
Freeman Dyson

3. 1st Imperative:
Overcome
Growth
Capacity Gaps
Gartner
RUN THE BUSINESS CONSUMES IT SPENDING

4. Sources of Innovation:
1. Top - down
2. Bottom - up
3. Middle - core
2nd Imperative:
Strike &
Maintain the
Right
Innovation
Balance

5. Complete Perspective. Smart Decisions.
Strike & Maintain the Right Innovation Balance:
Where does most of the innovation comes from
in your organization?
Poll 1

6. Complete Perspective. Smart Decisions.The Statistics Are Alarming
Traditional PPM is Failing to Deliver Anticipated Results
33%
of projects fail to
get completed or
implemented
of completed
projects experience
cost overruns
46%
Unrealized
Business
Value
Realized
Business Value
43%
of all projects are
delivered late or
over budget
Standish Group
Standish Group PMI
33%
of projects do not
meet their goals or
business intent
Gartner
18%
UMT360
Gartner

7. Complete Perspective. Smart Decisions.
IT Investment Management Roadblocks
• IT investment management under-performance is largely due to a breakdown in five factors.
• The company should evaluate performance and ask: ”How well does our company execute
against these five variables?”

8. Complete Perspective. Smart Decisions.
Overcome IT Investment Roadblocks:
Which factors are the most important?
Poll 2

9. Complete Perspective. Smart Decisions.
Unlocking Digital Investment Best Practices
1Digitalize IT
Portfolios
2Digitalize EPM
Scenarios
3Shifting from
project to product
based thinking
4Agile investments
and resource
allocation
5Performance
measurements
at all levels

10. Complete Perspective. Smart Decisions.
Play #1: Digitalize IT Portfolios

11. Complete Perspective. Smart Decisions.
Play #2: Digitalize EPM Scenarios
Technology
Modernization
Project &
Program
Inventory
Application
Portfolio
Catalog
Budgeting,
Annual
Planning &
Funding
Integrated
Portfolio
Analysis &
Decisions
IT Service
Portfolio
Catalog
Cost Tracking,
Chargebacks
& Showbacks
Benefits
Realization &
Cost Take-
outs
Demand
Management
& Roadmaps
Dynamic re-
planning &
re-allocation
of funds
Project &
Program
Tracking &
Execution
Governance
Risk &
Compliance
Business
Moments
Essential
Processes

12. Complete Perspective. Smart Decisions.
Play #3: Shift From Project To Product Based Thinking
Innovation
Business case analysis
Selection
Budgeting
Planning
Funding
Project management
Tracking
Benefits realization
Measurement

13. Complete Perspective. Smart Decisions.
Releases
New
Requests
Sanction
Process
Re-directs
New
Revised SAC
Sanctioned
Budget
Releases
always
Approved
Re-Directs
Yes
No
Approved?
“Accelerates momentum and agility because it never stops”
Play #4: Adopt Agile Resource Allocation

14. Complete Perspective. Smart Decisions.
Play #5: Performance Management at All Levels
Cost RONA
Applications Plan Actual Variance Plan Actual Variance
CRM 210 250 19% 0.15 0.1 -33%
CRM DX 300 325 8% 0.17 0.1 -41%
Sales Force 125 100 -20% 0.22 0.05 -77%
ACUSOFT 45 150 233% 0.07 0.1 43%
PRTY Aux 75 25 -67% 0.25 0.3 20%
ERP DXO 100 125 25% 0.07 0.1 43%
Oracle DB 35 56 60% 0.1 0.05 -50%
Asset Level – Applications performance
$365 $350 $330
$135 $150 $170
$0
$250
$500
Year 1 Year 2 Year 3
Run Grow & Transform
73%
70%
66%
Portfolio Level - IT Budget by Run, Grow & Transform

15. Complete Perspective. Smart Decisions.
Digital Investment Strategy:
Which factors are most important?
Poll 3

16. Complete Perspective. Smart Decisions.
Let Benefits Drive Decisions
Effectiveness - Improve the investment decisions
Reduce Run Investment by 4% per annum
Efficiency - Increase investment
operational efficiency
Reduction in admin cost thru
automated reporting
Reduce cycle times through improved
decision support
Reduce unnecessary portfolio
governance meetings
Baseline Variables
Total IT Budget $500mm
Project Budget $125mm
Run Spend Ratio 75%
UMT360 Total 3 Year Cost $900k (based on 500 user licenses and $300k of
implementation services)
UMT360 (3 year Results)
100% Realized 50% Realized 10% Realized
ROI * 9900% 4900% 900%
Total Run Investment Savings ($) $45.00mm $22.50mm $4.50mm
Avg. Yearly Savings ($) $15.00mm $7.50mm $1.50mm
Cost of Postponing (per month) $1.25mm $625k $125k

17. Tip: PPM Is
Not Enough
WHAT IS THE DIFFERENCE BETWEEN PPM AND EPM
IT DECISION EPM relative
contribution
PM relative
contribution
INVESTMENT STRATEGY
• Business drivers and portfolio mix High Medium
• Prioritization Medium High
• Resource Allocation High Low
PLANNING
• Innovation – creating investment opportunities High Low
• Enterprise Transformation – apps, infrastructure & projects High Low
• Projects planning Low High
FINANCIAL
• Cost estimation, budgeting and tracking High Low
• Benefits estimation, planning, tracking and realization High Low
• Funding and dynamic allocation High Low
EXECUTION
• Controls – manage variance High Medium
• Measurement – cost, benefits, timing and risk High Medium
• Change management High Low
GOVERNANCE
• Risk assessment and management High Low
• Accountability and approvals High Low
• Audit and compliance Medium Low

18. Complete Perspective. Smart Decisions.
IT Leaders Are No Longer in the Driving Seat
Median Percentage of Total Budget for
IT Controlled Through Central IT
Department (2010, 2011 and 2012)
Total technology spend directed by non-IT is close to 40%
Gartner

19. Complete Perspective. Smart Decisions.
Take Control!
Invest
ASSET LEVEL DECISION: SALESFORCE-DX
HoldRenovateRetire
Fund
PROJECT FUNDING - METRO
DelayDon’t Fund Increase
TRACKING PROJECT-DXO
DelayReduceCancel
IT INVESTMENTS

20. Complete Perspective. Smart Decisions.
www.UMT360.com
@UMT360
LinkedIn.com/company/umt360/
Thank You!
See us next week at the
Gartner PPM & IT Governance Summit,
Booth 310
Mike Gruia, UMT360 CEO