MicrosoftMicrosoft®® Office Office Project Portfolio Server 2007Project Portfolio Server 2007
Introduction to Project Portfolio Server 2007
Microsoft Office Project Portfolio Server 2007 is a top-down portfolio management solution that helps organizations realize their potential by identifying, selecting, and delivering investments that best align with their business strategy
Microsoft Office Project Portfolio Server 2007 Is a Key Component in the EPM Solution
Project Portfolio Server 2007 integrates with Project Server 2007 to provide organizations with an end-to-end project portfolio management (PPM) solution
ExecutivesPortfolio AnalystsProject Managers
Application Managers
Line of Business Systems
Line of Business Systems
Project Managers
Executives Resource Managers
Team Members
Project Project Server Server
GatewayGateway
Portfolio Management Is a Growing Market
Portfolio management helps organizations improve decision-making and identify the investments that will deliver maximum business value
Portfolio management is not just about projects
Successful organizations must gain visibility, insight, and control across varied investment portfolios (projects, programs, applications, products)
To maximize the return from IT investments, you must analyze and manage the interrelationships between application, asset, business process, and project portfolios
An action taken in one portfolio may trigger changes in other portfolios
Projects are vehicles for change
Application Valuation
ApplicationTransformation
Decisions
ApplicationInventoryUpdate
ApplicationRedundancyAssessment
Application Portfolio
Management
PortfolioSelection
PortfolioPlanning
PortfolioExecution
ProjectCapture &Valuation
Project Portfolio
Management
New Project Requests
New / Enhanced ApplicationsNew / Enhanced Applications
Project Portfolio Server 2007 includes best-practice portfolio analytical techniques to help organizations manage project, program, and application portfolios
Business StrategyBusiness Strategy
IT StrategyIT Strategy
Manage the Synergies Between PPM and APM
Project Portfolio Server 2007 Positioning and messaging
Gain visibility and controlObjectively prioritize and
evaluate competing investments
Tightly integrate with Project Server 2007
Optimize budget and aligninvestments with
business strategy
Top 10 Benefits of Project Portfolio Server 2007
1.New! Automate and enforce governance processes
2.Improved! Use best-practice PPM and APM methodologies
3.New! Capture all investments in a central repository
4.New! Objectively prioritize business strategy
5.Improved! Effectively prioritize and evaluate competing investments
6.Improved! Optimize budget and align with the business strategy
7.New! Reach the Efficient Frontier
8.New! Measure and track portfolio performance
9.New! Benefit from tight integration with Project Server 2007
10. Improved! Consolidate projects from federated Office Project Servers
Project Portfolio ManagementMicrosoft Office Project Portfolio Server 2007
Ab
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Ability to Realize Business-Value Potential(Project Server 2007)
75% 100%
66%
100%
0%
Portfolio Management
Project Management
50%Value Realized
50% Value Lost
Project Management helps ensure organizations successfully deliver the selected investments and realize the business value
Select and Deliver the Right InvestmentsPortfolio Management enables organizations to identify and select the investments that will maximize business value
Portfolio ReportingBenefits Realization
Successful Organizations Use Both Disciplines
Project ManagementProject PlanningCost ManagementResource ManagementTime ReportingChange ManagementIssue ManagementProject ReportingCollaboration
Portfolio ManagementPortfolio GovernanceBusiness Case DevBenefits ForecastingPrioritization / ValuationPortfolio OptimizationAdv Portfolio AnalyticsCapacity Planning
Project Portfolio Management answers the following questions:
Have I selected the right investments?Do the investments align with the strategic objectives?Do I have sufficient resources to deliver the selected investments?Will the investments be delivered on time and within budget?Are my investments delivering the forecast benefits?
Create Select Plan Manage
PPMLife Cycle Steps
Gov Phases
EPM Solution PPM Process and Architecture
Final Approval Baseline
Microsoft EPM Solution
Portfolio DashboardPortfolio OptimizerPortfolio Builder
CompleteProject Request
Form
1st Review
2nd Review
Resource RequirementsBusiness Case Development
Cost Estimates
Risk Assessment
Phase & Milestone Planning
Strategic Alignment Assessment
2
1
4
5
6
Benefit Forecasts3
Portfolio PrioritizationStrategic Value
Financial Value
Risk Value
Portfolio Optimization
Charting Analysis
Constraint Analysis
Adv Portfolio Analytics
1
2
3
1
2
3
Portfolio Selection
Detailed Planning
Develop Project Plan
Assign Named Resources
Define Interdependencies
1
2
3
Project TrackingProject Tracking
Time Reporting
1
3Issues & Risk Mgmt
Document Mgmt 4
5Team Collaboration 6
Resource Mgmt2
Portfolio TrackingChange Request Mgmt
Status Reporting
Portfolio Reoptimization
1
2
3
Completed
Predefined workflows help ensure the projects are subject to the appropriate governance controls throughout their life cycle (from proposal to postimplementation)
Capture all project requests within a central repository, and define business-case templates to standardize the data collection across the organization
Capture Project Requests/Ideas
1
2
Portfolio BuilderCreate: Capture project requests in an enterprise repository
Governance Workflow
Build a detailed business case for each project request in accordance with the governance workflow
General Information
3a
Cost Estimates Resource Estimates
Benefit Estimates Strategic Impact Assessment Risk Assessment
3b 3c
3d 3e 3f
Portfolio BuilderCreate: Business case development
Use proven techniques to define and prioritize business drivers
Derive a priority score to evaluate each project request (that is, strategic value, financial value, risk)
Prioritize Business Drivers
Prioritize Projects
4
Assess the impact of each project request against the prioritized business drivers
Business Drivers
Pro
ject
s
5
6
Analyze the project portfolio before attempting to make funding decisions
7
Investment Maps
Impact Assessment
Portfolio OptimizerSelect: Portfolio prioritization
8
10
9Use sophisticated optimization algorithms to maximize the portfolio’s strategic value under varying budget constraints (that is, cost and resources)
‘What If’ Analysis
Efficient Frontier Modeling
Business Alignment Analysis
Benchmark the selected portfolio against the Efficient Frontier
Calculate and communicate the selected portfolio’s alignment with the organization’s strategic priorities
Portfolio OptimizerSelect: Portfolio optimization and advanced analytics
12
13
Create real-time project and portfolio performance scorecards to help ensure executives and PMOs gain visibility, insight, and control across project portfolios within the organization. Automatically drill down to the project to view periodic status reports.
Project Status ReportPortfolio Scorecard
11
Portfolio DashboardManage: Track and measure the portfolio performance
Portfolio Reporting
Use intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization.
# PortfolioStrategic
ValueTotal EBIT
Original Selection 51% $389 M
Optimal Selection 82% $564 M
Final Selection (includes mandated projects) 75% $526 M
2
3
1
Strategic Value Gain = 24%
EBIT Increase = $137 MM
3
1
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Gaining ControlPortfolio optimization led to gains of $137mm EBIT, 24% strategic value for same budget
Application Portfolio ManagementMicrosoft Office Project Portfolio Server 2007
Application Valuation
ApplicationTransformation
Decisions
ApplicationInventoryUpdate
ApplicationRedundancyAssessment
Application Portfolio
Management
PortfolioSelection
PortfolioPlanning
PortfolioExecution
ProjectCapture &Valuation
Project Portfolio
Management
New Project Requests
New / Enhanced ApplicationsNew / Enhanced Applications
Business StrategyBusiness Strategy
IT StrategyIT Strategy
Rationalize and Manage Your Application PortfolioProject Portfolio Server 2007 includes best-practice portfolio analytical techniques to help organizations rationalize and manage application portfolios
APMLife Cycle Steps
Gov Phases
Application Rationalization: Process and Architecture
Microsoft EPM Solution
Portfolio DashboardPortfolio OptimizerPortfolio Builder
General InformationData Collection
TCO Estimates
Risk AssessmentOperational Performance Assessment
Business Process Assessment
2
1
4
5
6
Architectural Fit Assessment3
Derive Assessment Attributes
Business Importance
Architectural Fit
Risk
1
2
3
Manage ApplicationStatus Reporting
Document Management
1
3Enhancement Requests4
Cost Management2
Portfolio TrackingTransformation Road Map
Cost Management
1
2
Operational Performance4
Portfolio Analysis Redundancy Assessment
Charting Analysis2
1
Finalize Transformation Decisions
Create Analyze Manage
Manage Transformation Projects via PPM Governance Processes
Create Application Inventory
Portfolio BuilderCreate: Build an application inventory
General Information
TCO Estimates
Architectural Fit Assessment Business Process ImpactRisk and Operational Performance Surveys
Consolidate all applications in an enterprise repository, and standardize and streamline the collection of key metrics across the organization
Use proven techniques to define and prioritize architectural strategy/drivers
Understand the extent each application affects/supports the architectural strategy, and use this assessment to automatically derive an architectural fit score for each application
Architecture Driver Pair-wise Matrix
Architectural Fit Impact Assessment
Architecture Driver Priorities
L -
Pri
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H
Application Architectural Fit Scores
Portfolio OptimizerTwo-step prioritization: Architectural fit scoreStep 1
Step 2
Ap
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Architecture Drivers
Business Process Priorities
Use proven techniques to objectively prioritize the organization’s business strategy
Business Process Impact Assessment
L -
Pri
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H
Business Driver Pair-wise Matrix Business Driver Priorities
Derive a strategic value score for each business process by assessing its contribution to the success of each business driver
Bu
sin
ess
Pro
cess
es
Business Drivers
Portfolio OptimizerThree-step prioritization: Business importance score
Step 1
Step 2
Application Impact Assessment Application Business Importance Score
Business Processes
Ap
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Derive a business importance score for each application by assessing the extent each application supports/automates each business process
L -
Pri
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H
Portfolio OptimizerThree-step prioritization: Business importance score (Cont’d)
Step 3
This report allows analysts to compare the importance of the business processes with the annual cost of ownership of the applications that support and affect those processes. In the chart above, you can see that the accounting business process has a disproportionate cost relative to its business importance. Therefore, it is important to understand why the annual cost of ownership for this accounting process is so high. For example, are there redundant applications supporting this process?
Highlight possible redundancies in the portfolio by identifying applications that support/affect the same business processes. The report above shows that the accounting business process is supported by seven different applications. Is there any functional overlap between these seven applications?
Identify Redundancies in the PortfolioBusiness Process Value vs. Cost Comparison
Portfolio ReportingIdentify redundancies across the application portfolio
Create charts to visually evaluate the competing investments from multiple dimensions using the derived assessment scores and metrics (for example, business importance, risk, architectural fit, TCO, and operational performance)
Portfolio OptimizerEvaluate the application portfolio and finalize transformation decisions
Create real-time application and portfolio performance scorecards to help ensure executives gain visibility, insight, and control across application portfolios within the organization. Automatically drill down to the application to view periodic status reports.
Portfolio Scorecard
Portfolio Reporting
Use intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization.
Application Status Report
Portfolio DashboardManage: Track and measure the portfolio performance
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