Portfolio Management Initiative III. Operation, Maintenance and Replacement (Applications Portfolio Management) I. Strategic Business and IT Planning and Budgeting (Investment Portfolio Management) Life Cycle of IT Investments II. Project Implementation (Project Portfolio Management) October 25, 2005

Themes in Recent Legislation for Better Management of IT Improve the planning for and budgeting of IT investments. Prepare better researched and more thoroughly developed project plans. Provide stronger project management and more appropriate oversight. Improve the inventorying and analysis of major IT assets.

North Carolina’s Portfolio Management Initiative With legacy analysis and other efforts, North Carolina is ahead of other states in the implementation of portfolio management Late 2004 – Purchased UMT software tool from competitive bidding process. January 2005 – Began software tool implementation project. August 2005 – Began using tool for project management 2006 – Plan to have tool fully operating in management of projects and applications and in IT budgeting

Portfolio Management in State Government Approving and monitoring IT projects (project portfolio management) – Streamline and improve the effectiveness of department and statewide approval and periodic (monthly) status reporting. Analyzing legacy business software (applications portfolio management) – Maintain a statewide database of current business systems and provide analytical capabilities for managing these, including the identification of those at-risk and the forecasting of long-term cost liabilities for replacements and renovations. Identifying, analyzing, and prioritizing potential IT investments (investment portfolio management) – assist departments in evaluating alternative IT investment needs and opportunities and preparing funding requests.

Project Portfolio Management Improve the management of IT projects: Clarify roles and responsibilities. Provide for well understood and comparable oversight. Ensure projects are: Planned well and researched thoroughly prior to starting – business case. Managed and monitored proficiently to achieve budget, schedule, scope, and quality expectations - dashboard. Completed successfully so that business goals and objectives are realized - post-implementation assessment/closeout review.

Applications Portfolio Management Objective is to develop and maintain a comprehensive database of major state software applications to assist in managing them: Identify present technical and business status. Determine best approaches and ascertaining the priorities and timeframes for remediation/renovation, retirement, or replacement. Estimate associated costs – future liabilities.

Investment Portfolio Management Since late 1990s, becoming popular in public and private sectors to help align IT investments with organizational missions and business priorities. Recognizes that the management of IT is a joint business and IT responsibility. Helps evaluate and rank potential investments using a variety of criteria, including agreement with business strategies and goals (governmental priorities), costs, financial and societal benefits/value, project and business risks and architectural fit.

Training Hands-on training sessions: Basic – half day, hands-on course on the project portfolio module and its functionality and their assigned roles within their agency. Intermediate – full day, hands-on course on the project portfolio module and its functionality, their roles, status reporting, approval flows, and business case. Advanced – additional 2 day hands-on course on using other functions of the Project Portfolio module. 135 attended Theory training sessions: Project Portfolio Management Conceptual Class – three, half-day sessions on the concept behind Portfolio Management and business case development. Application Portfolio Management – Two, 2-hour sessions on the specifics of Application Portfolio Management were open to all agencies 295 attended

Portfolio Management Implementation Project approval and monitoring (Completed) Streamlined and simplified old processes No change in underlying concepts and principles, but better way of managing and communicating. Immediate benefit to projects, departments, and oversight organizations. Legacy applications (Next phase) Transfer of study data to tool and update of information Validate study findings, especially for immediate action applications. Begin cost estimating efforts for submitting long-term liabilities to General Assembly.

Portfolio Management Tool Implementation Planning and budgeting (Winter 2005-2006) Involves more sophisticated techniques and analysis activities (portfolio optimization and staffing resource scheduling). Less pressing timetable, as follows budget cycle. Some departments have volunteered to test these capabilities further before statewide rollout.

Portfolio Management For more information: http://www.scio.state.nc.us/PortfolioManagementInitiative.asp