Rationalize & Get More Business Value from your Applications

Ben ChamberlainUMT360 – Chief Product & Marketing Officerben.chamberlain@umt360.com

2010

Partner of the

YearIn Program and

Portfolio Management

2012

Visionary

In the Magic Quadrant

for Integrated IT Portfolio Analysis

2012

Cool Vendor

In Program andPortfolio

Management

2013

Visionary

In the Magic Quadrant

for Integrated IT Portfolio Analysis

Leaders in Enterprise Portfolio ManagementDigitalizing investment planning and controls across portfolios to

drive smarter business decisions.

2013

Partner of the Year

In Project and Portfolio

Management

Agenda & Key Takeaways

• What is Portfolio Management?• Establishing a Framework for APM• Synergies between APM & PPM• Building an Application Catalog• Cost of Ownership• Segmentation• Analysis & Decisions• Transformation Roadmaps

• UMT360 Demo… APM in Action• A Phased Approach• Next Steps• Questions & Answers

Takeaways:1. Portfolio integration is the key to

rationalizing and modernizing your application portfolio and realizing more business value.

2. The PPM & APM disciplines both get stronger when integrated.

3. UMT360 is built on SharePoint helping companies quickly implement an APM framework and gain more ROI from their Microsoft platform investment.

What is Portfolio Management?A question I have struggled with over the years!

Aggregate reporting across one or more portfolios?Alignment of spend with strategic priorities?

Portfolio Management is…Integration of all Portfolios to drive better business

decisions and value… Better business decisions require Financial due diligence.

Is It…

Portfolio Integration

Financial Intelligence

Roadmap Synchronization

Measure Performance

Enterprise Portfolio ManagementImportant Foundational Principles

Gartner Statistics…Drivers for Starting an APM Initiative

35%

92%

46%

1.37

of IT spend is associated with running and evolving applications

of the total application spend is dedicated to maintaining applications

of an application’s total cost of ownership occurs after it has been implemented

Is the average application portfolio mgmt. maturity level for companies

What is an application?

How should I calculate cost of

ownership for each application?

How often should I analyze my application

portfolio?

What data & metrics should I

maintain / collect?

How should I derive business

value & segment my portfolio?

Common Questions…As You Start Architecting an APM solution

Do I need to integrate my APM & PPM processes?

….

Integrated APM & PPMImportant Synergies Between APM & PPM

APMMaintain Catalog

Analyze Portfolio

Build Roadmaps

Measure Portfolio

PPMExecute Projects

Create Business Case

Select Portfolio

Plan Portfolio

Drive Higher Quality of IT Demand

Update Application Inventory & Track Results

Governance Controls

Descriptive Data

Portfolio Relationships

TCO & Budgeting

Assessment Metrics

Segmentation Approach

Resource Requirements

IT Service Consumption

Application Portfolio Inventory

The trick is to keep in mind that APM should be recurring process not a one time event.

Data collected must be be maintained on regular basis.

Building an Application CatalogStandardizing Data & Metrics across Applications

Portfolio Analysis & CollaborationAnalyze & Identify Transformation AlternativesUtilize powerful Business

Intelligence & Analytics to finalize transformation alternatives. Identify:• Poor Performing Applications• Redundant Applications• Low Architectural Fit• Expensive Applications• Infrastructure Optimization

Alternatives• Etc…

Tolerate Invest

MigrateEliminate

TIME Analysis

2014

2012

Business Fit

Risk

2013

Transformation RoadmapsCapture Demand & Gauge Cross Portfolio Impact

An Application

ProjectsProjectsProjects

Lifecycle Decisions

Portfolio Roadmap by Application

Application Transformation

Roadmap

Lifecycle Decisions

An Application

Transformation Projects

Related Applications

Business Capabilities

Application Catalog

Portfolio Analytics & Decisions

Cost Takeout's &

Benefits Realization

Performance Metrics & Surveys

Application Portfolio Mgmt.

Cost Tracking &

Chargeback Reporting

Budgeting, TCO &

Funding

Demand Generation

& Roadmaps

Change Mgmt.

Dashboards & Reports

Investment Governance & Controls

UMT360- Integrated APM Get More Business Value from your Applications

Segmentation & Capability

Mapping

Cross Portfolio

Mappings

Demo

A Phased Approach to APM Nirvana

Build Application Catalog & Analyze

Establish Application Centric Planning

Phase 1 Phase 2 Phase 3 Phase 4

APM

Mat

urity

Lev

el (1

to 5

)

- Level 5

- Level 4

- Level 3

- Level 2

- Level 1

Integrate Portfolios, Derive TCO &

Provide Roadmaps

Map to Business Capabilities (PACE

Layer)

APM Maturity Level (1 to 5)

Action PlanWhat Should I Do Next?

• Next 7 Days – Assess how your company is currently managing project financials & application portfolios

• Next 30 Days – Schedule an APM envisioning workshop with UMT360 experts

• Next 90 Days– Kick off an APM Proof of Concept to start rationalizing your portfolios

Thank You

Visit www.umt360.com to learn more

CRM Application

Other Applications

Projects Maintenance Activities

IT Services

Business Capabilities

Understand Portfolio RelationshipsAn Integrated View of your Application Portfolio is Key!

$ $ $

$

$

An application is a container of related assets, systems, projects and maintenance activities that

implements logic and rules to automate and optimize business

capabilities.

What is an Application?

Build - Project Work

Operate - Recurring Costs

Application Costs & BudgetingExpense Types & Planning Horizons

15%

30%55%

New Development Enhancement Operate

201620152014

Application Costs & BudgetingExpense Types & Planning Horizons

Application 1

Project 1 Project 2

O&M 2014

Indirect Costs

O&M 2015 O&M 2016

Application 2

Project 3O&M 2014 O&M 2015 O&M 2016

Application 3

Project 4O&M 2016

Indirect Costs Indirect Costs $

$

$

$

Create a multi-year roadmap of all expenses (i.e. maintenance, infrastructure and projects) by

application to streamline budgeting and drive complete

cost transparency.

Application Centric Planning

Systems of Record

Systems of Differentiation

Systems of Innovation

BusinessProcesses

Integrated, commoditized, stable

Highly configurable and customizable

Experimental, ambiguous, dynamic, ad

hoc

Pace of ChangeSlow, infrequent,

incremental (every 6 to 12 months)

Moderate, more frequent (every 3 to 6 months)

Rapid, very frequent, ad hoc (weekly, sometimes

daily)

Software Processes

Mostly waterfall (timeboxed).

Mostly incremental anditerative. Mostly agile.

Lifetime 10+ years 2 to 5 years 3 to 12 months

Strategic Focus Standardization;operational efficiency

Agility/flexibility;competitive differentiation

Disruptive thinking;alternative business

models

Stakeholders/Ownership

High executive engagement;

low end-user engagement

High LOB executive engagement;

moderate end-user engagement

Moderate executive engagement;high end-user engagement

Funding Capex and opex; annual budget

Capex and opex;IT budget or departmental

Departmental opex;innovation fund

Segmentation ApproachDon’t take a one size fits all approach to APM

Systems of Record

Systems of Differentiation

Systems of Innovation

Pace-Layered Application Strategy™

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