ibm software group ® smarter application portfolio management per kroll - [email protected] august...
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IBM Software Group | Rational software
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Problem: Insufficient spend on strategic projects
“A large UK bank initiated its APM effort to take a 90:10 ratio for run-the-bank / grow-the-bank down to a more reasonable 40:60 ratio. Dell shifted its maintenance-to-innovation ratio from 80:20 to 50:50.”
- The Application Portfolio Management Landscape — Combine Process And Tools To Tame The Beast, Phil Murphy, Forrester Research, Inc. April 15, 2011
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Solving the problems requires a different approach….
Addressing the problem requires an asset (application) portfolio approach to complement the traditional project portfolio approach
Project Portfolio Management
Commonly used in mature companies
Provides executives (only)
control over 20% of this year’s budget,
ability to affect this year’s project proposals.
Application Portfolio Management
Used effectively by only a few leaders
Provides executives
multi-year control over 80% of the budget,
ability to generate new project proposals such as structural changes to address problems faced.
”We can't solve problems by using the same kind of thinking we used when we created them.” - Albert Einstein
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Solution: Well-defined process with information feedsEffectively translate business needs to executable roadmaps
Determine DispositionDetermine Disposition
Do Macro Planning / RoadmappingDo Macro Planning / Roadmapping
Gather info, analyze, make decisions
Gather info, analyze, make decisions
Application Details
Business Alignment
Customer
Insight and Analytics
Plan
Implement
Data
Collection
Organization
Financial Performance
Technical Debt$25
/defect
$100/
defect
$16,000 per defe
ct
$450/
defect
$241,000 per defe
ct
$158,000 per defe
ct
Service Quality
Architecture& Technology
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Application Portfolio Management
Samplefeeds
Samplefeeds
RetireRetire
RetainRetain
ReplaceReplace
As-IsAs-Is
ConsolidateConsolidateUpgradeUpgradeRehostRehostWrapWrap
ConvertConvertRefactorRefactor
DiscontinueDiscontinue
RewriteRewritePurchasePurchase
LeaseLease
RetoolRetool
Enabled through maturing analytics:Qualitative Quantitative Predictive
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APM-Driven IT Optimizations
ConsolidationDriver: M&A, divestitures, silosBenefit: CostPayback time: Short
ModernizationDriver: Brittle architectures, retention, ageBenefit: Cost, Agility, RiskPayback time: Medium
ComplianceDriver: RegulationsBenefit: RiskPayback time: Short
Investment ManagementDriver: Transparency, EfficiencyBenefit: Cost, Business alignmentPayback time: Medium
SLA OptimizationDriver: Operational complexity, Cost, RiskBenefit: Operational Cost, Bus alignmentPayback time: Short
CloudDriver: Operational cost, fluctuationsBenefit: Cost, FlexibilityPayback time: Short
Rightshore / OutsourceDriver: Globalization, costBenefit: Cost, competencyPayback time: Short
Application Inventory
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Adoption of APM: Industry Maturity
20% use tools - Often too complex and ‘blank sheet”
issue
20% use tools - Often too complex and ‘blank sheet”
issue
80% use spreadsheets - Scalability issue
beyond 50 applications
80% use spreadsheets - Scalability issue
beyond 50 applications
“Business leaders demand that IT leaders “do more with less” to free resources for innovation and growth. Applications professionals are turning to application portfolio management (APM) to meet those challenges”-The Application Portfolio Management Landscape — Combine Process And Tools To Tame The Beast, Phil Murphy, Forrester Research, Inc. April 15, 2011
The market situation opens an opportunity for leaders to differentiate themselves from laggards
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APM Reference Model: IBM Rational Focal PointOut-of-the-box Information model and analytics
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Application Rationalization through Smarter APMEffectively execute on business planning and architectural roadmapping
Storage
Collaboration
QueryDiscovery
Administration: Users, projects,
process
Best Practice Processes
Presentation:Mashups
FutureIBM
Capabilities
Product & Project
Management
Collaborative Lifecycle
ManagementEngineering& Software
Tools
BusinessPlanning &Alignment
Yourexisting capabilities 3rd-Party
JazzCapabilities
Compliance& Security
Rational Focal PointAnalysis, decisions, roadmaps.
Execution roadmap
Execution Status
Architecture
Application Lifecycle Management
Rational System ArchitectImpact analysis and architectural roadmaps.
“Vision without execution is hallucination”
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Execute with collaborative application lifecycle managementDeploy new, common team infrastructure to manage modernization projects
Benefits• Improved communication, higher quality, informed decision making, and more
automated, transparent, and predictable software development• Support for re-platforming, UI modernization, conversion, refactoring, and rewriting
Benefits• Improved communication, higher quality, informed decision making, and more
automated, transparent, and predictable software development• Support for re-platforming, UI modernization, conversion, refactoring, and rewriting
IBM Software Group | Rational software
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