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IS 556 Enterprise Project Management

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PMO: Cost Center or Profit Center

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Cost Center or Profit Center? Depends on what the PMO is set up to handle

Can easily just generate costs if PMO is constructed in answer to a particular crisis.

Profit center PMOs are those that create project management systems that add value dependably and repeatedly.

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Major Contributions Program management (PgM) comes from

manufacturing where products are always been developed, implemented, marketed and closed out

Program management (PgM) roles Primary – manage the business on the program to insure

the return & other business objectives are achieved. Secondary – lead multiple pjt teams thru the product

development life cycle through coordination and control mechanisms

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PgM Core CompetenciesCustomer & Market• Market validation• Commitment to customer• Knowledge of customer

application

Team• Leadership and team building• Influencing and delegating• Decision-making• Communicate in all directions

Business & Financial• Strategic thinking• Business/industry/product

knowledge• Financial analysis capability• Ability to partner and use

network effectively

Professional Development• Continual Improvement• Depth/Breadth of expertise• Self motivated• Advocate for change

– What does this say for using PgM on IT projects?

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Bonham, chapter 5

Architecture Management

Lecture 7 [57] IS 556 --Spring 2008 May 12, 2008 7

Bonham Ch 5 – Architecture Management Overview

5.1: The EBA (Enterprise Business Architecture) 5.1.1: Supply and Demand 5.1.2: Constraints and Enablers 5.1.3: Business System Modeling

5.2: The EIA (Enterprise Information Architecture)

5.3: Implementing EIA

5.4: Summary

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Architecture Management Overview Enterprise Architecture (EA):

a strategically aligned blueprint from which IT projects can draw.

Enterprise Architecture (EA) consists of: Enterprise Business Architecture (EBA)

Simple version consists of: Organizational charts Job descriptions

Advanced version adds: State charts Process Flow Charts

Enterprise IT Architecture (EIA) consists of: Information Architecture (DBMS versus silo systems) Application Architecture (Enterprise systems versus home-grown) Technology Architecture (WAN versus LAN)

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Architecture Management Overview

For creating the EA, IT PMO coordinates: Business units Business case writers IT architecture teams

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Comprehensive EA Benefit Goals – Define the direction and priorities of IT in an

organization, linked to business goals Long-term savings in support Better alignment with business strategy More consistent IT processes Best practices in software reuse Common look and feel on all systems makes all

easier to learn and use Lower costs of integration

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The Enterprise Architecture (EA) Choices

Starting at thebottom andworking up whendeveloping anEA

Fig 5.1

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5.1 (EBA) Enterprise Business Architecture Problem/Solution:

Corp strategy is developed by executive committee BUs then develop their microstrategies and goals (M&G) Then – business cases are presented to prove their

alignment to M&G BUT– who keeps this stuff up to date Enter the IT PMs who are constantly drilling down and

updating such stuff and then keeping it in the IT-PMOs IT-PMO can then tell the business case writers

what goodies they already have for them to use and what they can store for them so they end up with

a viable EBA (Enterprise Business Architecture)

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5.1.2 Constraints & Enablers for Technical Initiatives

Fig 5.4 –pipeline between initiative portfolio and projectportfolio – show both constraints & possible enablers

2 types of constraintsconstraints inhibit success of architecture 1. Facts of life (FOL) –govt. regs., geography, technology– unavoidable

2. Manageable –capital allocation, org structure & forces, IT architecture, mitigated risks

Now possible to complete development of the EBA

Fig 5.4

Lecture 7 [57] IS 556 --Spring 2008 May 12, 2008 15

5.2 The EIA (Enterprise Information Architecture) Helps guide the acquisition and deployment of technology – from

approved business initiatives Remember EIA has 3 layers influenced by 4th (the EBA)

Information Architecture Application

IT PMO now maintains the architecture as business changes IT PMO reviews technical business initiatives in light of the

architecture layers to determine How new tech fits with each of the 4 layers How new tech will be deployed Timeline for help desk training What external support is needed Will new tech migrate to future technologies

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5.3 Implementing EIA with EAM team

The Enterprise Architecture Management (EAM) coordinates with the various business units and IT architecture teamto DEVELOP and EVOLVE the EBA and EIA [4].

EAM consists ofrepresentativesfrom various business units.

1. Early tech assessments2. Review viability3. Audit ongoing pjts.

Virtual PMO =EAM + IT PMOFig. 5.8

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Summary On reviews of IT-based initiatives, EAM team of

the IT PMO acts as a middle man between business case writer and IT architecture review team.

EAM bases technical risks on architectures from business units (EBA) and IT (EIA).

Potential problem of maintaining EBAs and EIAs is addressed by IT PMO developing: Firmness in some areas Flexibility in others

Lecture 7 [57] IS 556 --Spring 2008 May 12, 2008 18

Bonham, chapter 6

Asset Management

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Bonham Ch 6 – Asset Management 6.1: Inventories

6.2: Enterprise Asset Management

6.3: Organizational Support

6.4: Summary

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Inventories Problem of uncoordinated IT inventory and control process

in business units and corporate.- no one knows exactly what the IT assets are in the firm!

Solution: Get a handle on current inventory of IT assets Goals for the centralized asset inventorycentralized asset inventory

CommunicationCommunication - Stronger between disparate projects - Stronger between disparate projects FinancialFinancial – determining the TCO (Total Cost of Ownership) of IT – determining the TCO (Total Cost of Ownership) of IT

assetsassets OperationalOperational – improving response to problems with business-critical – improving response to problems with business-critical

IT systemsIT systems Project Support Project Support – making sure asset procurement workflow follows – making sure asset procurement workflow follows

guidelines and with portfolio reducing redundancy from guidelines and with portfolio reducing redundancy from TrainingTraining LicensingLicensing Help desks Help desks

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Benefactors of a Consolidated IT Asset Inventory

Fig 6.1

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Inventory Types Static Inventories

Finding hardware throughout firm Getting a baseline inventory of IT assets –

--find out how IT assets used -- see them -- count them -- record them -- then update the baseline

Dynamic Inventories Unfortunately, inventories are rarely, if ever, static so when

doing the baseline– there are more assets coming in through silo-like processes at the business units

Must get control of the distributed IT asset purchasing processes

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Dynamic InventoriesBenefits of consolidating distributed asset inventories

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Dynamic Inventories – Project Inventories

What happens to IT assets after successful rollout? Convert to production use Use lease arrangements -- IT assets revert to leasers Give to operations for future upgrades Licenses go unused – biggest missed opportunities for IT

PMO

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Effects of Asset Inventories on the EA

DistributedInventory

DistributedInventory

DistributedInventory

Molds

HR

Marketing

Manufacturing

IT Purchasing&

Control Processes

Restricts

Molds

ConsolidatedIT Asset

Inventory

Restri

cts

EA

Molds

Mar

ket

pla

ce

CorporateStrategy

EBA

EIA

Molds

Molds

Lecture 7 [57] IS 556 --Spring 2008 May 12, 2008 26

Financial Asset Management IT assets have several phases which EIA s/assess

Tasks in assessment: Is asset already in the enterprise’s inventory? Is asset listed in enterprise’s approved product catalog? Is asset compatible with the environment? Is pricing review and vendor negotiation needed? Should asset be added to standard catalog?

Tasks managed by PM and IT operations in life cycle Requisition – request for asset by PM Approval – by project sponsor and notification to IT support Procurement – purchase order sent to vendor /notify IT support Receipt – shipment received, sent to IT support Deployment – IT support installs, Pjt team tests Tracking – viewable by auto-tracking tools, status to asset mgt Disposal – shut-down status set to asset management

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Organizational Support Asset management must have executive support Must be a top-down directive,

Support from all levels needed Inventory team

Needs to understand and control duplicate asset procurement and management processes

Needs to be aware of any other hardware and software surveys that other business units may be undertaking

Only then, a moving inventory can begin that logs incoming assets while tracking existing assets.