Application Portfolio Management

David Messineo

CA SPM Product Management

Target Audience

2

CFOFinance

CIOIT Manager

Service Providers

How do we balance value, agility, quality risk and cost?

How do we make the best

IT investments?

Can IT support

Our BusinessStrategy?

Service Delivery ManagerSupplier ManagerQuality Manager

Procurement

How do we meet

customer expectations

continuously?

Chief ArchitectOperations Manager

How do I maintain a

flexible, effective architecture?

Application Portfolio Management (APM) focus on providing value to

customers by supporting the following proof points:

Management of applications, services, and projects from a strategic

portfolio perspective

Ability to transition from existing portfolio to new portfolio based on fit for

purpose along business, financial, operational, and technical perspectives

Structure the rationalizing decision making process and ensuring proper

governance

Managing strategic investments through better sourcing, transparency, and

performance tracking

APM - Problem Definition

3

OperationsMaintenance

OperationsSupport

ApplicationsSupport

ApplicationsEnhancement

NewApplications

Total Cost ofSupporting

Applications &Operations

TODAY TARGET

OperationsMaintenance

OperationsSupport

ApplicationsSupport

ApplicationsEnhancement

StrategicSolutions

StrategicCapacity

DirectSavings

Rationalization – The search for effective investments

4

ExistingApplication

Portfolio

FutureApplication

Portfolio

Capture Categorize Evaluate Select Transition

RationalizationKey challenges of managing application value

Maintaining Catalog

Categorization

Business Fitness

Infrastructure Sprawl

Personnel Skills

Architecture / Infrastructure

Integration Capabilities

Economic Efficiency

Developmental Enhancements

Security Risks

On-going Availability

Organizational Priority

5

Application Portfolio Management (APM)- A CA Technologies Perspective

Step I – Register applications in target environment. Discover and/or document the necessary background meta data for each application for assessing the various rationalization strategies.

Step II – Rationalize based on business and technical fit. Mapping and Chunking. Applications are grouped into logical categories with business meaning. Dependencies and linkages are established among resources to document their interrelationships.

Currently this generally involves creating application ‘suites’ and mapping into business processes (e.g. for application rationalization)

Eventually this will involve create application ‘suites” and grouping applications by architecture (e.g. for infrastructure rationalization).

Step III – Evaluate based on identified criteria (e.g. risk, cost, etc). Costs and risks for each application are allocated by grouping. Users and key stakeholders for each application are surveyed to identify their relative importance and priority to the strategic goals of the organization. Survey results are related to organizational financials and risk objectives to determine ratings (i.e. scoring).

Portfolios are constructed and evaluated on the basis of cost, asset values, usage, financial return, strategic importance and other defined objectives.

Rationalization strategies are evaluated to determine the optimum approach using a combination of cost benefit analysis, portfolio optimization, risk assessment and financial impact.

Step IV – Identify Portfolio Transformation requirements. Layout the appropriate programs and supporting projects to transition the old portfolio to the new portfolio.

Programs and Projects should include the appropriate resource plan, investment schedule, and cost controls.

Register applications in

targeted environment

Rationalize based on

business and technical fit

Evaluate based on identified criteria (e.g.

risk, cost, etc)

Identify Portfolio

Transformation requirements

6

APM Drivers / Triggers Based Analysis(Examples)

Drivers Triggers {s=strategic, o=operational} Rationale Role

Merger & Acquisition • Redundant Business Processes {o} • Align Processes • Portfolio Planner / Business Analyst

Demand Management • Resource Shortages {o}• Conflicting Priorities {s, o}

• Workload Effectiveness• Organizational Prioritization

• CIO / Project Manager / Resource Mgr• Business Analyst / Resource Mgr

Enterprise Architecture • Process / Service Requirements {s}• Platform Capabilities {s}• Outdated Technology {o}• Resource Utilization

• Align Processes• Improve Agility• Architectural Standardization• Capacity Turnover

• Business Analyst / Chief Architect• IT Applications Mgr• Infrastructure Mgr• Infrastructure Mgr / Chief Architect

Cost Determination(Financial Performance)

• Business Requests {s, o}• IT Requests {o}• Cost Recovery {o}

• Improve Agility• Optimize SLA• Business Value

• CIO / Business Mgr• Business Analyst / Chief Architecture• IT Finance Mgr / Portfolio Mgr

Vendor Consolidation • Opportunities (Supply Chain) {s,o} • IT Staff Right Sourcing {s,o}

• Align Processes• Capacity Turnover

• Business Mgr / Analyst• CIO / Business Mgr

Cost Reduction(Financial Performance)

• Total IT Investment {s,o}• License Renewals {o}• Redundant applications {o}

• Business Value• Reduce Costs• Reduce Costs

• Business Mgr• IT Finance Mgr / IT App Mgr• Portfolio Planner / IT App Mgr

Risk Reduction • Security Issues {o}• Performance Issues {o}• Stability Issues {o}• Operational Issues {o}• Business Complaints {o}

• Risk Reduction• Workload Effectiveness• Risk Reduction• Risk Reduction• Optimize SLA

• CIO / Chief Architect• Chief Architect / IT App Mgr• IT Applications Mgr• Infrastructure Mgr• Business Manager

Technology Consolidation • Architectural Complexity {o}• Technology Spend {o}• Business and IT Risk {o}

• Improve Agility• Resource Consolidation• Risk Reduction

• Chief Architect• IT Finance Mgr• Business Mgr / Analyst

Work Management • Ratio Planned / Unplanned Work {o}• Environment Monitoring {o}

• Reduce Costs• Workload Optimization

• IT App Mgr / Project Mgr / Resource Mgr• Infrastructure Mgr

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marquee features – based on APM 1.1

Best Practice

Industry

KPI’s

Application

Discovery &

Automated Data

Collection

Operational

PlanningPortfolio

Transformation

(Scenarios)

Performance

Monitoring

fastAPM Wizard

And

Reporting /

Dashboards

Library of KPI’s

that are already

tied to BSI for

quick

deployment

Performance and

usage data

collected and fed

to portfolio

automatically

Portfolio’s tied to

business

planning around

Services and

Applications

Automated

discovery of

Services and

Applications and

linkages

Role based

Rationalization

analysis based on

pre-configured

optimizations

Looking a Rationalization Holistically

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product roadmap– Application Portfolio Management (APM)

20152012 2013 2014 2016

Exis

tin

gP

lan

ned

Un

der

Co

nsi

de

rati

on

CY

• Productize Cloud Compass• Content Based Solution • Built on Clarity 13• Easy install & setup

• Clarity Feature Enhancement• Portfolio Mgmt Capabilities

• Integrated Project / Program Mgmt• BSI APM Content

• Usage (SCM, Accounting)• Performance (Nimsoft)

• Application / Service Dependency• Troux Integration

• Advanced Scenario Management• Reliability Index• Analysis – Improve Agility• Analysis – Align Processes• Analysis – Work Effectiveness

• Integration with BSI• BSI APM Content

• Usage (Clarity, Catalog)• Performance (USD, SOI,

Wily APM)• FastAPM Wizard• Enhanced Discovery capability• Application / Service Dependency

• CMDB• Scenario Planning• Analysis – Cost Reduction• Analysis – Risk Reduction• Analysis – Tech Standardization• Clarity On-Demand Enablement

(with BSI)

• First full APM release• Clarity Content Base• Application Discovery / Clustering• Application & Service Portfolio• Portfolio Scoring• Application Dependency (Manual)• Analysis – Cloud Migration • Analysis – Business Fit• Analysis – Redundancy• Clarity On-Demand Enablement

• Cloud Compass• APM (EMEA), APM (APJ), • Plan Build Run

• Clarity Feature Enhancement• Solution Integration

• Unified Demand Mgmt• Automated Fitness Analysis• Automated Risk Analysis• Automated Project Creation• Analysis – Organizational Prioritization• Analysis – SLA optimization• Analysis – Capacity Turnover

project context– APM & BSI

Clarity

ServiceDesk

ServiceCatalog

ServiceAccounting

Clarity SOIHwAM/SwAM

Wily APM

QualityWorkSLA’sCosts

ServicesApps

DeliverySLA’s

RevenueCosts

Services

QualitySLA’s

MeteringCosts

Services

ProfileWorkCostsSMI

ServicesApps

QualityAvailability

Services

QualityResponseServices

Apps

BSI

ContractsCostsApps

Info

rmatio

n So

urces

Tech Complexity

Volatility

Domain Skills

Interfaces

Scalability

Costs

Business Fit

Biz Complexity

Details

ClarityAttributes

APM(Rationalize)

CommitsContracts

SLA’s

SCM

QualityWorkApps

BSI

PerformanceDatabasePortfolio

Plan & Build Build & Run

Clarity / BSI Interplay

CreateApplication

CreateService

CreatePortfolio

CreateContract

IdentifyAttributes

Map Attributes to Metrics

AssignMetrics to Contract

RationalizePortfolio

Collect RawPerformance

Data

CalculateMetrics

Create Projects to

Execute Plan

CreatePortfolioFuture State

Move Metric Data

to Clarity

MDR MDR MDR

Track Portfolio

Performance

IdentifySLA

Violations

TrackProject

Performance

CLARITY

BSI

ResourceModel

CaptureSMI Survey

Info

Continuous ImprovementRationalization Maturity Model

LEVEL 0 - Initial Manual Process

•Process Defined

•Portfolio Info Collected

•Classifications Defined

•Roles and Ownership

Identified (RACI)

•Data Collection

•Investment Criteria

Identified

LEVEL 1 - ActiveLimited Automation

•Leverage Portfolio Mgmt

System

•Portfolio, Rationalization,

Investment, and Risk

Models Defined

•Information Model

Defined by Portfolio Type,

Driver Type, and

Rationalization Type

•Automated Data

Collection

LEVEL 2 - EfficientFormal Process

•Performance Information

Collected

•Continuous

Rationalization Process

•Benefits Identified and

Tracked to

•Automated Computations

for Various Models

•Automated Prioritization

Based on Defined Fitness

Functions

•Policy Management (&

Gap Identification)

•Minimal Enterprise

Architecture Information

LEVEL 3 - OptimizedScenarios &Predictive Performance

•Industry Centric

Standardized KPI’s

•Model Prediction and

Planning Optimized

•Performance Goal

Tracking (Planned vs.

Actual)

•Automated Model

Adjustments

•Advanced Constraints

•Optimization

•Automated Risk Analysis

LEVEL 4 – Biz DrivenAutomated Recommendations

•Measure the Effectives of

the Rationalization

Process

•Automated

Rationalization

Recommendations

•Automated Investment

Options

•Integrated Enterprise

Architecture

•Portfolio Leveling (by

investment, strategic fit,

risk, etc…)

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