IT Portfolio Management Using Enterprise Architecture and ITIL® Service Strategy

IT Portfolio Management using
Enterprise Architecture
and ITIL® Service Strategy
adapted from presentation given at
PMI Singapore Regional Symposium
4 Oct 2012

Please see Acknowledgements & Notices in second last slide

PortfolioMgt-EA-ITIL.ppt © 2012 NUS unless otherwise stated. 1
www.iss.nus.edu.sg

My Organisation
 Institute of Systems Science
 www.iss.nus.edu.sg
 Part of National University of Singapore
 Support national IT competency development needs
 Faculty of practitioners from industry with average of
more that 15 years experience each
 Caters to working IT professionals
■ Post-Graduate Programmes
■ Executive Programmes
• IT Management
• Software Engineering
■ Consulting
■ Industry Research
www.iss.nus.edu.sg

About Myself
ITIL Expert, TOGAF 9 Enterprise Architect,
CITPM (Senior), COMIT, CGEIT,
Chartered IT Professional

 20 years of IT management experience
 Portfolio Management
 Enterprise Architecture and Planning
Goh Boon Nam
Chief, New Initiatives  IT Operations Management
Institute of Systems Science  Application Development Management
 Process Improvement

 Consultancy for private and public sector
 CMMI
 Enterprise Architecture

www.iss.nus.edu.sg

PORTFOLIO MANAGEMENT

www.iss.nus.edu.sg

Portfolio vs Programme/Project Mgt
 What is the difference between portfolio
management and programme/project
management?

 Is it possible to have great programme/project
execution but poor portfolio management?

 Anyone heard of lemmings?

www.iss.nus.edu.sg

Great Project/Programme Execution
Poor Portfolio Management
Lemmings – animals
claimed to commit mass
suicide by jumping down
cliffs

Project (individual jump)
– well done

Programme (group jump)
– well done

Portfolio – Are the right
programmes / projects
being chosen for
implementation?
[Is cliff-jump the right thing
to get lemmings to do?]

www.iss.nus.edu.sg

Portfolio vs Programme/Project Mgt
Strategic Pre-Project Project Post-Project

Portfolio Management
Level of Work

Programme
Programme
Management
Management

Project
Project
Management
Management

Tactical
Do things well

Select right things Ensure right things get done
to do

www.iss.nus.edu.sg

Portfolio Management
 Portfolio
■ is a term that refers to an organization's group of
programmes/projects Portfolio Management

Programme
Programme
Management
Management
 Portfolio Management Project
Project
Management
■ the process in which the organisation’s Management

programmes/projects are selected and managed.

 The portfolio of programmes/projects is
strategically selected to advance the
corporation's organisational goals.

www.iss.nus.edu.sg

Other Differences - Portfolio Mgt vs
Programme/Project Mgt
 Strategic level

 Whole organisation perspective

 Long time horizon for each portfolio plan
■ Say, 3 to 5 years for IT portfolio
■ Minor review & adjustments during the planned period to cater to
• Changes in the organisation
• External changes

 Continuous journey
■ Major review and update of portfolio plan every few years
• Before current plan expires
• Earlier if there is major change in environment

 A Portfolio Plan can be said to be a Master Plan
www.iss.nus.edu.sg

• Would you choose the same IT projects to carry out
for both of these companies?

• What projects would you select for each and how
did your arrive at that answer?

vs

www.iss.nus.edu.sg

IT Portfolio Management
 Use IT Portfolio Management best practises
to choose the right IT projects/services

■ Enterprise Architecture eg. TOGAF method

■ ITIL Service Strategy

www.iss.nus.edu.sg

ENTERPRISE ARCHITECTURE
- TOGAF® METHOD
www.iss.nus.edu.sg

Who are using Enterprise Architecture?
 Public Sector Example
■ Singapore Government
• “The (EA) programme aims to establish a
federated view of all government agencies'
enterprise architectures to optimise government
ICT assets for greater cost savings or
avoidance.”
 Private Organisation Examples

 How does EA help them?
www.iss.nus.edu.sg

Singapore Government EA
Ministry of Education
■ Before EA
• Uncoordinated IT expenditures
• Siloed redundant systems
• Limited IT efficiencies
• Cumbersome systems that prevented agility
■ EA helped
• Reduced number of systems by 44%
• Saved over $25 million
Source: http://www.infoworld.com/print/173372

www.iss.nus.edu.sg

Proctor & Gamble
■ Before recent launch of EA
• Business processes not end-to-end digital
• Lack of standardisation
• Lack of real-time information
■ EA helped
• Introduce “Going Digital” programme
• Increased business process standardisation by
10%
• Increased end-to-end automation by 10%
• Increased real-time information by 300%
Source: http://www.infoworld.com/print/173372

www.iss.nus.edu.sg

EA Definition
 Gartner
■ Enterprise architecture (EA) is the process of
translating business vision and strategy into
effective enterprise change by creating,
communicating and improving the key
requirements, principles and models that describe
the enterprise's future state and enable its
evolution. (i.e. choosing right things to do)
■ Enterprise architects compose holistic solutions
that address the business challenges of the
enterprise and support the governance needed to
implement them.

www.iss.nus.edu.sg

EA is NOT Solution Architecture

Source : http://www.andyblumenthal.com/2007/08/enterprise-architecture-is-not.html

www.iss.nus.edu.sg

One EA Method – TOGAF ADM

 The Open Group
■ Vendor and technology-neutral industry consortium
■ Most famous for being the standards body for UNIX and
developer of TOGAF
 TOGAF
■ The Open Group Architecture Framework
■ A detailed method and a set of supporting tools for
developing an enterprise architecture
■ TOGAF ADM
■ TOGAF Architecture Development Method
■ A method for developing and managing the lifecycle of an
enterprise architecture, and forms the core of TOGAF

www.iss.nus.edu.sg

TOGAF Architecture Development Method

TOGAF
ADM

Business Enhanced
Vision & Business
Drivers Capabilities

© The Open Group Source: http://pubs.opengroup.org/
architecture/togaf9-doc/arch/

www.iss.nus.edu.sg

Prelim and Vision
http://www.youtube.com/watch?v=obcS6BalVh0

www.iss.nus.edu.sg


TOGAF
ADM

Business Enhanced
Vision & Business


www.iss.nus.edu.sg

Enterprise Architecture – 4 Domains
Business Vision & Drivers

Business
Business processes,
Architecture organization,
people

Application Data
Architecture Architecture
Services Data, information

Hardware, Technology
software, Architecture
network

www.iss.nus.edu.sg

Business Architecture – Example (1)

PortfolioMgt-EA-ITIL.ppt © 2012 NUS unless otherwise stated.
www.iss.nus.edu.sg

Business Architecture – Example (2)

Duplication Streamlined
in Functions Functions

New
Functions
Eg. Foreclosure
Avoidance
Source: http://portal.hud.gov/hudportal/documents/
huddoc?id=DOC_15169.pdf

www.iss.nus.edu.sg


Business
Business processes,
people

Application Data

network

www.iss.nus.edu.sg

Application Architecture – Current

Wasteful duplicate
Redundancy applications
and Siloed for same
Applications process

applications
cover only a
process & not
whole function

Source: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_13845.pdf

www.iss.nus.edu.sg

Application Architecture – Target

Streamlined
Portfolio
of
Applications


www.iss.nus.edu.sg


Business
Business processes,
people

Application Data

network

www.iss.nus.edu.sg

Data Architecture - Target

Streamlined
Portfolio of
Data Sources
-Consistent data
- “Single” source
of truth


www.iss.nus.edu.sg


Business
Business processes,
people

Application Data

network

www.iss.nus.edu.sg

Technology Architecture – Current & Target
Product HUD TRM
HUD TRM CATEGORY Parent Name
Version Status
SUN JAVA SYSTEM APPLICATION
Application Server Software 9 TF
SERVER
Application Server Software SUNONE APPLICATION SERVER 8.2 TC

Application Server Software SUNONE APPLICATION SERVER 7 M

Application Server Software SUNONE APPLICATION SERVER 6.5 O

Asset Management Tools OPEN VIEW ASSET CENTER 5 TF
• Target Future (TF)
Asset Management Tools OPEN VIEW ASSET CENTER 2 TC • Pilot (P)
Business Intelligence MICROSTRATEGY 8.X TC • Target Current (TC)
• Maintain (M)
Business Intelligence CRYSTAL REPORTS 8.5 M • Obsolete (O)

Business Intelligence CRYSTAL REPORTS 8 O

etc..

www.iss.nus.edu.sg

Technology Architecture – Target

Streamlined
Technology
Architecture
(example)


www.iss.nus.edu.sg


Business
Business processes,
people

Application Data

network

www.iss.nus.edu.sg

Creating Target Enterprise Architecture

Current Target

Business Business
Business processes, Business processes,
people
EA Architecture organization,
people
Method
Application Data Application Data
Architecture Architecture Architecture Architecture
Services Data, information Services Data, information

Hardware, Technology Hardware, Technology
software, Architecture software, Architecture
network network

www.iss.nus.edu.sg


TOGAF
ADM

Business Enhanced
Vision & Business


www.iss.nus.edu.sg

Opportunities and Solutions
Business Architecture
Information Architecture
Current Target Gaps Opportunities
 ...........
....... ........ .......  ...........

Application Architecture
 ...........
....... ........ .......  ...........

Technology Architecture
 ...........
....... ........ .......  ...........
Portfolio of IT projects (examples)
1. Upgrade systems, network infrastructure, VPN
2. Increase server capacities
3. Implement enterprise data warehouse & BI
4. Implement CRM solutions
5. Implement Knowledge management
6. Implement B2B partner / customer portal
7. Standardize all application servers
8. Implement security controls on all financial applications
9. Implement workflow / business rules engines
10. Implement mobile sales force
11. etc.
Each opportunity can
be an IT initiative
www.iss.nus.edu.sg

The Business Value Assessment
Technique

www.iss.nus.edu.sg


TOGAF
ADM

Business Enhanced
Vision & Business


www.iss.nus.edu.sg

Migration Planning (1)

www.iss.nus.edu.sg

Migration Planning (2)

www.iss.nus.edu.sg


TOGAF
ADM

Business Enhanced
Vision & Business


www.iss.nus.edu.sg

Implementation Governance (1)

• Governance Process
includes oversight of

• Business Case

• Design

• Acquisition

• Post-Implementation
Review

Source: http://portal.hud.gov/hudportal/documents/huddoc?id=eatpv6.pdf

www.iss.nus.edu.sg


TOGAF
ADM

Business Enhanced
Vision & Business


www.iss.nus.edu.sg

Architecture Change Management
Monitor for Triggers to a new EA cycle:

www.iss.nus.edu.sg


TOGAF
ADM

Business Enhanced
Vision & Business


www.iss.nus.edu.sg

EA & IT Portfolio Management

 For an internal/shared IT service provider
■ EA helps create a Target Architecture/Portfolio aligned to the
enterprise’s needs
 For an external IT service provider
■ There are advantages to plan from the customer’s perspective to
offer them a Target Architecture/ Portfolio aligned to the
customer’s needs
 EA has a detailed and mature (v9) process to help
■ Produce the Portfolio / Target Architecture
■ Govern the implementation of the Portfolio
 EA-trained professionals already exists in many organisations
 EA training and international certification is available in
Singapore

www.iss.nus.edu.sg

EA & IT Portfolio Management
Number of TOGAF Certified professionals:

15,000 +
globally
900+
in
Singapore

www.iss.nus.edu.sg

ITIL® SERVICE STRATEGY

www.iss.nus.edu.sg

What is ITIL?
 Originally stood for IT Infrastructure Library
■ Books on IT Management Best Practises developed by UK
Government with the help of industry practitioners
■ Originally for IT Infrastructure but now covering IT Services in general

 Complements IT project mgt & IT development management

 Covers the IT service management aspect required for the full
lifecycle management of IT Services (before, during and after
completion of a project) –
■ 26 management processes

 Internationally recognised and widely adopted
■ Individual professional ITIL certifications/qualifications
■ Organisational certification through related ISO20000
www.iss.nus.edu.sg

ITIL ® Service Portfolio
Service knowledge management system
Service Strategy
helps to plan and govern
Service portfolio
the implementation of
Service status Service Portfolio e.g.:
Requirements
Definition Service
pipeline
New IT services or enhancements
Analysis
Approved
to add to the Service Pipeline
Service lifecycle

Chartered
Design
Customer/support
Development team viewable
Build section of the
Test service portfolio Existing
Service (the service
Release catalogue catalogue, with IT services
Operational/live selected fields
viewable)

Retiring
Retired Retired services IT services to be retired

www.iss.nus.edu.sg

ITIL ® Service Portfolio Management
 Initiate Portfolio Review
 Portfolio Review
■ “Define”
• E.g. External service provider definition of
which services to provide
■ “Analyse”
■ “Approve”
■ “Charter” / “Retire”
 ( “Strategy Execution” - part of another
ITIL® process known as Strategy
Management process )
 Refresh Portfolio
© Crown Copyright 2011

www.iss.nus.edu.sg

Service Portfolio Management - Define
 “Step 1 – Define the market and identify
customers
 Step 2 – Understand the customer
 Step 3 – Quantify the outcomes
 Step 4 – Classify and visualize the service
 Step 5 – Understand the opportunities (market
spaces)
 Step 6 – Define services based on outcomes
 Step 7 – Service models
 Step 8 – Define service units and packages”

www.iss.nus.edu.sg

Step 1 – Define the markets & identify
customers

 Market / Customers
■ Fixed
• Parent organisation of an internal service
provider
■ Strategic choices can be made:
• Industry
• Geography
• Scale
• Demography (eg. if consumer IT service)

www.iss.nus.edu.sg

Step 2 – Understand the customer
Step 3 – Quantify the Outcomes
 Desired business outcomes
■ Increase revenue Examples of Customer assets

A1 Network
 Customer assets (see right)
A2 Server
 Constraints
A3 Storage
■ Eg. inability to continue service should a
disaster occur
A4 Facility

 Perception & measurement A5 Application
of value / Quantify outcome
■ Objective / Metric / Desired Outcome
■ “Recover Services From Major Disruptions
Within x Business Time-frame”


www.iss.nus.edu.sg

Step 4 – Classify & Visualise the
service

A1 - Network

A3 - Storage

A4 - Facility
A2 - Server

Etc…
U1 - Train
U2 - Support
Also combine with
U3 - Maintain - Industry
U4 - Design - Geography
U5 - Implement - Scale
U6 - Host - Demography
etc…

www.iss.nus.edu.sg

Step 5 – Understand the market spaces
Higher

Less promising green Inedible but promising
tomatoes tomatoes
(maybe invest later) (probably invest later)
Volatility

Late blossoms and Imperfect but
small green tomatoes edible tomatoes
(probably never invest) (maybe invest now)
Lower

Rotten tomatoes (never invest) Ripe tomatoes (invest now)

0 1.0 > 1.0
Value-to-cost

www.iss.nus.edu.sg

Step 6 – Define services based on
outcomes
Lines of service Outcomes supported Constraints removed

f ield staf f securely
Mobile workplace being constrained by
access enterprise
services location or time
applications

provide value loans of f icers
Credit-reporting to the determine credit without
services customer rating of applicants
when

disruption or loss
Business continuity business processes
f rom f ailures or
services continue to operate
disastrous events


www.iss.nus.edu.sg

Step 7 – Develop service model
Example of Service Model – Business Continuity Service

http://networld-ic.com/managementsystem-en/datacenter-disaster-recovery/Default.aspx

www.iss.nus.edu.sg

Step 8 – Define service package
 Core Service
■ Delivers the basic outcome required
■ E.g. Disaster recovery centre for
business continuity service Service package

 Enabling Service Core service
■ Needed for core service but not
visible to business customer
■ E.g. Electricity supply to disaster
recovery centre
Enabling service Enhancing service

 Enhancing Service
■ Not necessary in the core service
■ Makes service attractive
■ E.g. good transport & catering
service for staff carrying out
disaster recovery work


www.iss.nus.edu.sg

ITIL ® Service Portfolio Management
 Initiate Portfolio Review
 Portfolio Review
■ “Define”
• E.g. External service provider definition of
which services to provide

Higher
Less promising green Inedible but promising
tomatoes tomatoes
(maybe invest later) (probably invest later)

■ “Analyse”

Volatility
■ “Approve”
Late blossoms and Imperfect but
small green tomatoes edible tomatoes
(probably never invest) (maybe invest now)

■ “Charter” / “Retire”

Lower
Rotten tomatoes (never invest) Ripe tomatoes (invest now)

0 1.0 > 1.0
Value-to-cost

 “Strategy Execution” (part of another
ITIL® process known as Strategy
Management process)
 Refresh Portfolio

www.iss.nus.edu.sg

SUMMARY

www.iss.nus.edu.sg

Summary
 Portfolio management – important as it chooses
the right things to do and ensures they get done
 For IT portfolio management, EA and ITIL ®
Service Strategy are available as best practises
 EA and ITIL SS can be complementary
■ EA plans portfolio from enterprise perspective
■ ITIL ® SS plans portfolio more from service
provider perspective (while taking value to
customer into consideration)
 EA (TOGAF) and ITIL ® both internationally
recognised and adopted

www.iss.nus.edu.sg

For Further Information
Please refer to:
http://www.iss.nus.edu.sg/

Or email Goh Boon Nam at:
issgbn@nus.edu.sg

www.iss.nus.edu.sg

Acknowledgements & Notices
 ITIL® is a registered trade mark of the Cabinet Office
 The Swirl logo™ is a trade mark of the Cabinet Office
 Quoted text is from ITIL® Service Strategy © Crown
Copyright 2011. Reproduced under licence from the Cabinet
Office. [Any original emphasis excluded. Emphasis then
added for purpose of this presentation.]
 Text in italics is based on Cabinet Office ITIL® material.
Reproduced under licence from the Cabinet Office
 TOGAF® is a registered trademark of The Open Group
in the United States and other countries
 © 2011 NUS unless otherwise stated.

PortfolioMgt-EA-ITIL.ppt © 2012 NUS unless otherwise stated.
www.iss.nus.edu.sg

THE END

www.iss.nus.edu.sg

IT Portfolio Management Using Enterprise Architecture and ITIL® Service Strategy

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (18)

Similar a IT Portfolio Management Using Enterprise Architecture and ITIL® Service Strategy

Similar a IT Portfolio Management Using Enterprise Architecture and ITIL® Service Strategy (20)

Más de NUS-ISS

Más de NUS-ISS (20)

IT Portfolio Management Using Enterprise Architecture and ITIL® Service Strategy