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1 Implementation of Application Portfolio Management Background and Planned Approach September 26 and 27, 2005.

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Presentation on theme: "1 Implementation of Application Portfolio Management Background and Planned Approach September 26 and 27, 2005."— Presentation transcript:

1 1 Implementation of Application Portfolio Management Background and Planned Approach September 26 and 27, 2005

2 2 Presentation Objectives Review key concepts of portfolio management. Highlight progress made in implementing the portfolio management software tool in state government. Outline next steps for completing the implementation of the software tool – management of legacy applications. Introduce plans for IT biennial budget requests. Answer questions.

3 3 Mission Statement for the Portfolio Management Initiative - 1 Assist state government agencies to improve the management of IT investments by: (1) providing contemporary software tools that incorporate proven theories and methodologies, and (2) following best practice approaches and disciplines to: Identify, rank, and justify investments that are synchronized with governmental initiatives, agency strategies, and business goals; are achievable within personnel and budgetary limitations; offer acceptable risk profiles; maximize financial returns and/or societal benefits; satisfy project interdependencies; fit technical architectures; and meet security, privacy, and recoverability requirements.

4 4 Mission Statement for the Portfolio Management Initiative - 2 Advance the management of IT investment implementation projects by: clarifying roles and responsibilities; providing for well understood and comparable oversight; ensuring that they are planned well and researched thoroughly prior to starting; facilitating the management and monitoring of them to achieve budget, schedule, scope, and quality expectations; and completing them successfully so that business goals and objectives are realized. Improve the management of software applications to assist in: a) determining the best approaches, priorities, and timeframes for enhancement, remediation, and/or retirement/replacement in order to optimize benefits/costs over their operational life cycles; b) ensuring they provide reliable, secure, and recoverable services; c) estimating associated costs; and d) performing other planning work.

5 5 Framework for Managing IT Investments I. Strategic Business and IT Planning and Investment Selection and Budgeting (Linking IT Investments to Agency Missions and Business/Program Goals and Objectives, and Investment Portfolio Management) III. Investment Operation and Maintenance, and Renewal, Retirement, or Replacement (IT Service Management; Enhancement, Renovation, or Termination; IT Asset Management; and Applications Portfolio Management) II. Project Implementation (Acquisition of Products and Services, System Development Life Cycle Methodology, Project Management Methodology, Agency and Statewide Governance, and Project Portfolio Management) Life Cycle of IT Investments

6 6 Framework for Managing IT Investments I. Strategic Business and IT Planning and Investment Selection and Budgeting (Linking IT Investments to Agency Missions and Business/Program Goals and Objectives, and Investment Portfolio Management) III. Investment Operation and Maintenance, and Renewal, Retirement, or Replacement (IT Service Management; Enhancement, Renovation, or Termination; IT Asset Management; and Applications Portfolio Management) II. Project Implementation (Acquisition of Products and Services, System Development Life Cycle Methodology, Project Management Methodology, Agency and Statewide Governance, and Project Portfolio Management) Life Cycle of IT Investments Portfolio Management – Investment Portfolio Management Investment Evaluation and Funding Recommendation

7 7 Policy Drivers and IT Management Expectations for Strategic Business and IT Planning Collaboration and transparency between IT/non-IT execs via an integrated process and better manage activities, resources, costs throughout the enterprise Requires high quality business cases that increase probability of successful outcomes (on budget, within schedule, and meet user and stakeholder expectations) Identifies a pool of IT investments that best support core mission functions and prioritized business needs, best fit with approved architectures, have acceptable risks, and are accomplishable within fiscal and personnel limitations Focus on common needs that can promote sharing of information and IT resources across organizational lines Use IT project business cases that cover cost, expected benefit realization, schedule, and risks Demonstrate technology spending is focused on improving agency and program performance Legislative Mandates Drive IT Portfolio Management Use Plan and budget for future funding more effectively:  Encourage the use of shared technical infrastructure, common technical services, and like applications  Minimize duplicate and unnecessary expenditures  Maximize returns and benefits from investments  Decisions to support strategic directions and governmental priorities  Selecting the best mix of projects to deliver maximum value to the agency or state  Ensuring applications are matched to business needs

8 8 Consistent and Clear Criteria to Prioritize and Decide on Investments Financial — Revenue Generation and Cost Savings 0.25 Sample Weight Business Impact — Public Self Service and Unified Services 0.35 Risk — Probability of Success/Failure 0.25 Architectural Fit — Principles Adherence PROJECT BUSINESS CASES Strategic alignment, mix and optimization – balance risk and reward Optimized Finance Optimized Risk Optimized Strategic Portfolio $ $ $ IT Portfolio Operational efficiency Costs Head count Transformation Policy objectives Private partnerships Process reengineering Greater participation Closing the digital divide Economic impact Greater transparency Greater accountability More-effective policy making Political return Constituent service Constituent value Lower constituent cost Greater availability Constituent centricity Effective interactions Single point of contact Public Value?

9 9 Overview of IT Investment Portfolio Management in State Government Department Business Strategy Department Business Architecture (Business Service Models) Business/Program Goals and Objectives Processing and Information Flows Organization Charts Business Reengineering Opportunities Department Mission Statutory Mandates Governmental Initiatives Application Portfolio Management New Projects Asset Infrastructure Management Retirements Replacements Modernizations Maintenance IT Investment Portfolio Management Identify potential investments and evaluate candidates against defined criteria Prioritize projects based on analysis results (relative weighted scores) Balance staffing and fiscal resources Determine disposition – invest, adjust, or sunset Refreshment Cycles Security/Reliability Upgrades New Applications Infrastructure Additions/Upgrades Current IT Project Portfolio Status of all projects (schedule, budget, business objectives, etc.) Projects no longer relevant or with lower priorities Projects with higher priorities or increased urgency Other Plans and Strategies State CIO IT Plan Statewide IT Initiatives Department & Statewide Tech. Architectures Department IT Plan Funding Requests and Project Approvals

10 10 Framework for Managing IT Investments I. Strategic Business and IT Planning and Investment Selection and Budgeting (Linking IT Investments to Agency Missions and Business/Program Goals and Objectives, and Investment Portfolio Management) III. Investment Operation and Maintenance, and Renewal, Retirement, or Replacement (IT Service Management; Enhancement, Renovation, or Termination; IT Asset Management; and Applications Portfolio Management) II. Project Implementation (Acquisition of Products and Services, System Development Life Cycle Methodology, Project Management Methodology, Agency and Statewide Governance, and Project Portfolio Management) Life Cycle of IT Investments Portfolio Management – Project Portfolio Management Project Approval Project Tracking and Reporting and Post Implementation Assessment

11 11 Policy Drivers and IT Management Expectations for Project Management Offer documents and administrative management capabilities that follow industry recognized best practices for system development life cycle and project management Provide a “gated” review approach to ensure each project has performed all preceding work acceptably and is in position to complete the succeeding phase successfully, and to verify that it is still viable (i.e., continuing to offer worthwhile benefits and value within satisfactory cost and timetable parameters at desired quality levels and presenting an acceptable risk profile) Provides a workflow process that encompasses project approvals, checkpoint reviews, and periodic status reporting at project, agency, and statewide levels Enable the productive and effective management of projects Employ governance to maximize the potential of project success Support the consistent, disciplined, effective, and efficient performance of project governance Legislative MandatesDrive IT Portfolio Management Use Provide stronger oversight of project management:  Improve performance in costs, scope, schedule, and quality  Increase reliability of achieving expected business results, projected benefits to citizens, and proposed value to the state  Guide and administer governance for project approvals and monitoring/status reporting  Prescribe information to be developed, maintained, and reported for programs and projects  Report program and project status and identify exception situations

12 12 Governance and Management for Project Implementation

13 13 Portfolio Dashboard

14 14 Framework for Managing IT Investments I. Strategic Business and IT Planning and Investment Selection and Budgeting (Linking IT Investments to Agency Missions and Business/Program Goals and Objectives, and Investment Portfolio Management ) III. Investment Operation and Maintenance, and Renewal, Retirement, or Replacement (IT Service Management; Enhancement, Renovation, or Termination; IT Asset Management; and Applications Portfolio Management) II. Project Implementation (Acquisition of Products and Services, System Development Life Cycle Methodology, Project Management Methodology, Agency and Statewide Governance, and Project Portfolio Management) Life Cycle of IT Investments Purchasing Process

15 15 Position of Purchasing in Project Portfolio Management Workflow Exit and Re-Entry Point for RFP Process Draft RFP (Using Results From Work in Phase 1) Issue RFP and Receive Vendor Proposals Evaluate Proposals and Recommend Award

16 16 Framework for Managing IT Investments I. Strategic Business and IT Planning and Investment Selection and Budgeting (Linking IT Investments to Agency Missions and Business/Program Goals and Objectives, and Investment Portfolio Management) III. Investment Operation and Maintenance, and Renewal, Retirement, or Replacement (IT Service Management; Enhancement, Renovation, or Termination; IT Asset Management; and Applications Portfolio Management) II. Project Implementation (Acquisition of Products and Services, System Development Life Cycle Methodology, Project Management Methodology, Agency and Statewide Governance, and Project Portfolio Management) Life Cycle of IT Investments Portfolio Management – Applications Portfolio Management Optimize maintenance costs and benefits over useful lives and retire or replace at best times

17 17 Policy Drivers and IT Management Expectations for Applications Portfolio Management Collect and analyze cost, benefit, and strategic value information to evaluate the TCOs of retention, enhancement, or replacement alternatives for maximizing long-term worth to the organization Review operational assets on an appropriate recurring basis to determine whether they are cost-effective to operate and maintain, align with strategic business and architectural directions, are recoverable and security acceptable, and are risk justified Demonstrate that normal maintenance and necessary enhancements are planned and conducted in a manner that optimizes costs and benefits over the useful lives of assets Legislative MandatesDrive IT Portfolio Management Use  Increase capabilities for inventorying assets and analyzing them, including infrastructure hardware, software, communications equipment, and legacy (in place) applications  Determine the right times and best approaches for renovating, retiring, or replacing assets  Develop and submit annual disaster recovery plans Evaluation of the inventory of the current application stock for architectural fit, for suitability to the business needs, and for the prospective costs and risks of various application investment or retirement strategies Evaluate assets by determining business and technical status; developing remediation, retirement, or replacement approach; and ascertaining priority and timeframe for action Estimate the state’s 5-year cost liability for applications maintenance, renovation, and replacement Develop cost estimates for asset modernization, and retirement (with and without replacement) and total statewide Provide information for developing business impact analyses (BIAs) and resulting continuity plans (BCPs) for key applications Identify vulnerabilities, criticalities, return-to-service needs, dependent business processes, public services, etc.

18 18 Seems to run forever, but ultimately has a finite business, economic, and/or technical life Sources of Risks Issues Surrounding Systems Obsolescence Over time, sustainability of applications becomes questionable due to age and technology advances, combined with changed business needs. They no longer: a) support business goals and objectives, b) are cost-effective to operate or maintain, and/or c) are risk-acceptable by presenting too great a likelihood of failure with cataclysmic consequences. Business Issues Impediment to the implementation of new and more cost-effective service delivery models – unable to respond to demands for new functionality, support business processes, or provide adequate and secure information access Becomes a constraint in meeting regulatory requirements Staffing issues - Unavailability of Skills Unavailability of staff skills or expertise to maintain Unavailability of third party vendors Dependency on individual contractors Technology issues Expired warranties, with no vendor support Can not handle increased usage or volumes of data Does not run anymore on available platforms Inefficient IT resource utilization Used beyond original intent, and cannot be enhanced Cannot meet security, privacy, or confidentiality requirements Are not easily recoverable for disaster recovery and business continuity System can fail, with untraceable error Inconsistent or inadequate information and data quality

19 19 Why the Management of Legacy Applications is Important 1.Risks 2.Costs 3.Funding opportunities 4.Benefit/Cost optimization 5.Fiscal liability 6.Performance and capacity 7.Disaster recovery and business continuity Ongoing and long-term management of:

20 20 Why the Management of Legacy Applications is Important – Risk Management  December 24, 2004 – Comair’s 18-year-old flight crew management system failed: –All 1,100 flights cancelled Christmas day –Comair did not return to full schedule until December 29 – total of 3,900 flights cancelled or delayed –Nearly 200,000 passengers stranded - Cost $20 million –Highly regarded image and reputation tarnished – key executives resigned or replaced No backup system - Plans for replacement had been in works for 7 years prior to failure – but no implementation for a variety of reasons, events, and circumstances (no valid excuses) System had a critical flaw that was not known – could handle only 32,000 crew changes per month – snow storm hit Ohio Valley December 22 through 24, requiring many transactions, so that the ‘magic number’ hit on Christmas Eve Source: CIO Magazine, May 1, 2005

21 21 Lessons from Comair – Considerations for use in Business Cases for Replacing Legacy Applications Cost of failure (cost of not mitigating crash) – Potential for jeopardizing organization’s image, brand, and reputation, and loss of revenue and increase in operating costs. Possible advantages of replacement: –Lower operating and maintenance costs. –Better customer or constituent services. –Increased integration and adaptability. Better to move strategically (proactively) to replace legacy system than to have to respond tactically (reactively) to application failure. Source: CIO Magazine, May 1, 2005

22 22 Why the Management of Legacy Applications is Important – Cost Management Definitions Maintenance – Defect repair and other changes that don’t affect application function. Changes are ‘mandatory” in type, and projects are less than 2-weeks in duration. Enhancements – Projects that add, change, or delete functionality. “Rules of Thumb” Source: Gartner, Inc. 1.Annual maintenance cost is 11 cents for every $1 dollar of application development cost. 2.Annual enhancement cost is 17 cents for every $1 dollar of application development cost. Therefore, an order-of-magnitude estimate of total annual ongoing costs of applications is 30% of their development costs. The average age of applications is a little over 8 years (national, not NC number); therefore, the total cost of ownership is $3.40 for every $1 of development cost – over the life of an application, its maintenance and enhancement costs can exceed its development cost by over a factor of 2 (twice as much)

23 23 Why the Management of Legacy Applications is Important – Funding Management Expenditure Type Percent of Total IT Spending Business Value of Investment 1. Infrastructure to run the business and maintenance of legacy applications 47% Low 2. New Applications: Utility Enhancement Frontier Total 53% 21% 11% 100% Low Medium High Source: Gartner, Inc. Two-thirds of spending (infrastructure and utility applications) gives one- third of business value – need to reverse this ratio (reduce percents on these and increase percents on enhancement and frontier applications) as much as possible. Equally important, the funding source for new applications can come from the better management of legacy ones.

24 24 Why the Management of Legacy Applications is Important – Benefit/Cost Optimization Management Benefits/Costs Time Implementation of Application Growth in initial benefits with steady maintenance costs Major enhancement performed Period of stable benefits and costs Growth in benefits from enhancement with stable maintenance costs Period of deferred maintenance and declining benefits (e.g., foregone benefits from not meeting emerging business needs) Mandatory Decision Point – retire, replace, or renovate? Operational (Business and Technical) Risks Risk Acceptability Limit Minimum acceptable benefits/costs Opportunity time to act before reaching mandatory decision point

25 25 Why the Management of Legacy Applications is Important – Fiscal Liability Management Future Cost Liabilities – Annual Costs and Growth Rates Time Legacy Applications – Future annual projections and long-term spending patterns are unknown ??? Today State Business Infrastructure Program Funding (SBIP) - $20 M Comparison Cost Types: Medicaid, Employee Health Care, Public Education, etc. – spending pattern is generally linear with long-term compounded annual growth rates of 3% to 10% per year. ProgramCostCGR Medicaid$2.3 B10% Education$9.1 B3%

26 26 Why the Management of Legacy Applications is Important – Performance and Capacity Management Performance ConsiderationsCapacity Considerations Usability – Ease of use (intuitive). Reliability – ability to keep operating over time. Availability – length of time between failures. Security – ability to resist unauthorized attempts for access. Adaptability – ability to be changed quickly and economically to meet evolving business requirements. Functionality – ability to do the work for which it was/is intended. Portability – ability to run under different computing environments. Recoverability – resiliency to human- initiated or natural disasters. Arrival rate – rate at which transactions arrive into the application. Service rate – rate at which transactions are processed by the system. Utilization – ratio of arrival rate to service rate. If greater than 1 (100%), the transactions arrive faster than they can be processed (called saturation). Response time – total time for one transaction to be processed. Latency – time required for an operation to complete. Response times are usually the total of many latencies. Scalability – the ability of an application to meet increased business transaction demand.

27 27 Why the Management of Legacy Applications is Important – Disaster Recovery and Business Continuity Applications Portfolio Management Database Name and other identifying information Business processes supported and users served Importance to agency missions and criticality to operations (strategic fit) Technical/architecture, infrastructure used, and interfaces with other applications/uses Operational performance, risks, and other data Business Impact Analysis (BIA) Vulnerabilities to human-originated and natural disasters Interdependencies and priorities of business processes and return to service objectives and strategies Recovery requirements – personnel, IT, paper records, business facilities, etc. Business Continuity Plan (BCP) Provide Information For Protective measures and actions to mitigate potential disasters, especially those with high probability and high impact Prerequisites for recovery – technical, IT, business, alternate facilities, staffing, etc. What to recover (priorities and timetables) How to recover (processes and procedures for recovery/continuity) Recovery Strategy Implementation of Recovery Strategy

28 28 Summary of Findings of Legacy Applications Study – December 2004 In the portfolio of approximately 900 applications: 40% are considered critical for department mission/strategy; 17% are enterprise (statewide) applications; and 75 of the applications processed by the state data center require 1-day return-to-service capability. The statewide portfolio is relatively young, with an average age of 7.5 years – since 1997, from 70 to 90 new or replacement applications have been added each year to bring down the average age. Health status is: 23% presenting functional, technical, or both problems; 50% with some problems, but manageable; and 27% healthy, with a prescription for continuing on-going operations and maintenance. Remediation timeframes are: 11% require action immediately (within next two years), 35% require action in the near term (2 to 4 years), and 54% require action in the long term (4 to 6 years). Although the immediate needs of the portfolio appear to be manageable, projections of its future status, if no remediation actions are taken, indicate an increasingly deteriorating condition as the applications age.

29 29 Business TechnologyFinancial Application Portfolio Analysis Perspectives Do we have the right capabilities in place? Are they aligned with business priorities? Where are potential synergies? Are there duplications? Are applications sustainable? Do they fit in the desired architecture? What is the technical migration road-map? Are they risk-acceptable? Do they present security, privacy, or disaster recovery vulnerabilities? How do we maximize overall value? Can costs be optimized across the organization? To what extent can innovation and new applications be funded by cost savings? Do they cost too much to operate or maintain? Key Concepts: Analysis Perspectives Business, technology, and financial perspectives are combined to determine the posture of the application, indicate the appropriate remediation strategy, and to provide recommendations for managing the application portfolio over time

30 30 Application Portfolio Management - Approach for Assessing Applications Question #1 No Yes Question #2 Continue Regular Support & Mainte- nance Create Inventory in UMT Portfolio Management Software Tool Assess Overall Posture of Application Business Status? Technical Status? Determine if Remediation (Other Than Regular Ongoing Support and Maintenance) Required Evaluate Business Importance and Criticality of Problems - Prioritize & Specify Timeframe for Action Question #3 Remediation Required? Incorporate Results in Business and IT Planning Processes Next Steps Data Collection, Analysis, and Decision-Making Process

31 31  Expensive to operate or maintain  None or decreasing vendor support for major components  Insufficient or decreasing availability of staff support  Architecture not allow enhancements for new business requirements  Inefficient IT resource utilization  Inadequate data access and quality  Vulnerable security  Recoverability difficult or suspect  Cost-effective to operate and maintain  Adequate vendor support for major components  Adequate availability of staff support  Architecture allows enhancements for new business requirements  Efficient IT resource utilization  Adequate data access and quality  Adequate security protection  Resilient to human-induced or natural disasters  Meets present service delivery needs  Meets anticipated needs for new services, business process reengineering initiatives, and information access  Protective of individual privacy and data confidentiality  Creates inefficient and less effective service delivery processes  Constraint on implementation of new services, expanded citizen benefits, and/or more efficient business processes  Individual privacy and data confidentiality at risk Business Perspective Low High High Attention Zone – Both Business and Technical Risks Safe Zone Warning Zone – Not Making Best Use of In-Place Technology to Meet Business Needs Warning Zone – High Technical Risks Application Portfolio Management - Determining the Posture of Applications Technical Perspective Safe Zone Generic criteria are defined to assess applications from a business and technology perspective Bad Good Bad

32 32 Application Portfolio Management - Remediation Approaches Replace, if possible, with Commercial or Government Package: Low value probably doesn’t justify custom code No Reengineering: Re-host candidate Functional enhancement Low Priority Reengineering: Low maintenance and support costs Provides value as is Regular support and maintenance Technical Perspective Business Perspective Good Reengineering Candidates: High business value means quicker ROI Renovation will improve support and maintenance costs High/Good Low/Bad

33 33 Application Portfolio Management - Investment Selection and Prioritization “ Critical/At Risk” are highest priority were level of risks drive (broader) remediation activities “Limited Risk/Critical” applications are second priority compared to critical/at risk “At Risk/Non Critical” applications are also second priority for remediation, especially if risks can be mitigated “Limited Risk/Non Critical” applications should be reviewed to minimize technology investments and look for opportunities to consolidate or substitute for better solutions Overall Importance Low High Selectively Second Priority Business/Technology Risk or Urgency Second Priority First Priority At Risk / Critical Limited Risk / Non Critical Limited Risk / Critical At Risk / Less Critical Prioritization and timeframe for action is driven by overall importance as well as risks. In addition prioritization is driven by: – Specific business initiatives, programs, and/or funding streams available – Overall risk issues, interrelationships between applications, and the general need for modernization of legacy systems Low

34 34 Framework for Managing IT Investments I. Strategic Business and IT Planning and Investment Selection and Budgeting (Linking IT Investments to Agency Missions and Business/Program Goals and Objectives, and Investment Portfolio Management ) III. Investment Operation and Maintenance, and Renewal, Retirement, or Replacement (IT Service Management; Enhancement, Renovation, or Termination; IT Asset Management; and Applications Portfolio Management) II. Project Implementation (Acquisition of Products and Services, System Development Life Cycle Methodology, Project Management Methodology, Agency and Statewide Governance, and Project Portfolio Management) Life Cycle of IT Investments Investment Identification, Evaluation, and Justification Process Applications requiring immediate and near term remediation or replacement Transition from APM to IPM Funded Projects for Application Remediation or Replacement

35 35 Position of Investment Identification, Evaluation, and Justification in Project Portfolio Management Workflow Entry Point From Applications Portfolio Management (APM) Exit Point from Investment Portfolio Management (IPM) To Expansion Budget Submission or Other Funding Request Process Note Perform the work tasks and complete the tabs in Phase 1of Project Portfolio Management (PPM) - determine goals and objectives, scope, costs, benefits, staffing, investment priority, implementation approach, technology, risks, procurement requirements, and other information necessary to define, plan, and justify legacy applications remediation or replacement project. Note

36 36 Two Near-Term Concurrent Paths for Application Portfolio Management Review Agency Responses for 90 Immediate- Attention Applications from Legacy Study and Take Appropriate Action Begin Design and Development Activities for Implementing Application Portfolio Management using Software Tool Legacy Applications Study Performed Last Year Spreadsheet Listing of 90 Applications by Agency Implementation Effort for Applications Portfolio Management

37 37 Overview of Work on Applications Portfolio Management – Fall 2005 Task/DeliverableTimeframe 1. Develop draft worksheets (called tabs in software tool) 2. Configure tabs 3. Review tabs (including sample data) with agency-level advisory committee 4. Finalize tab configurations and load applicable inventory data to UMT tool 5. Develop rollout plan, including training for optimizer and planner modules for expansion budget preparation – ongoing and recurring approach for application and investment portfolio management. Mid Sep – End Sep First Oct – Mid Oct First Nov – Mid Nov Mid Oct – End Oct Mid Nov – End Nov

38 38 Timeline for Implementation and Use of Application and Investment Portfolio Management Capabilities Jun 2005 Jan 2008 Jan 2006 Mar 2006 Jun 2006 Jan 2007 Jun 2007 Aug/Sep 2006 Sep –2007 Biennial Budget 2007 –2009 Biennial Budget APM Configuration and Agency Rollout Plan Development APM and IPM Rollout to Agencies Agencies Perform Legacy Assessments, Develop IT Plans, and Prepare Expansion Budget Requests SCIO Review Agency Expansion Budget Requests, Prepare Statewide Legacy Assessment, and Write SCIO IT Plan Agency Submissions to SCIO: 1) Legacy Assessments, 2) Agency IT Plans, and 3) Expansion Budget Requests Submissions to General Assembly: Governor’s Budget Package SCIO – 1) Statewide Legacy Assessment, and 2) Statewide IT Plan SCIO Deliver Interim Legacy Assessment Report to General Assembly for 90 Projects Needing Immediate Attention Agencies Assess Study Findings for 90 Immediate Attention Applications and Report Status, Remediation Approach, and Needs for Assistance Today APM – Applications portfolio management IPM – Investment portfolio management SCIO – State CIO Legend Next Year Four MonthsFive Months Implement APM and IPMUse APM and IPM Apr 2006

39 39 IT Portfolio Management Maturity Framework Source: IT Portfolio Management: Step-By-Step, Bryan Maizlish and Robert Handler, 2005 and modified by NC Strategic Initiatives 1. Admitting 2. Communicating 3. Governing 4. Managing 5. Optimizing Basic data collection (identification, purpose, owner) for IT projects, applications and infrastructure As-is planning, funding, and selection processes are defined Enterprise and unit IT views More refined portfolio decisions Mechanisms and metrics Sense and respond Aggregating and interrelating projects using standard data elements Business value, technical condition, process supported and affected units are identified Infrastructure and applications assets compared to architecture technical standards All sub-portfolios are documented and key interrelationships highlighted Synchronized governance structure exists involving project, program, and portfolio managers with executive steering committee direction Policies and defined processes for decisions exist; periodic review of application and infrastructure portfolios utilizing asset management Project, application, and infrastructure interdependencies are recognized and factored into decisions Cost and benefit realization metrics governing projects Solid metrics to track use and effects of governance processes and mechanisms Applications, and infrastructure are defined, captured, and used to manage the portfolios as assets rather than tracked expenses. Complete processes with supporting metrics Projects and programs provide reliable, accurate information and are supported by excellence in project management and execution Balancing of project, application, and infrastructure portfolios using key asset information There must be a better way…


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