IT Transformation - Make IT the Engine of Innovation for Enterprise Transformation - Conrad...

©2014 Software AG. All rights reserved.

Conrad Langhammer Global Director: Portfolio Management

IT Transformation Make IT the Engine of Innovation for

Enterprise Transformation

©2014 Software AG. All rights reserved. 2 |

Change is Fundamental to any Business

• Change is constant and it is

nothing new

• Embracing change is key to

business success

• IT transformation is elemental

to business change

Source : Forrester Research, Inc., October 2013 “Competitive Strategy In The Age Of The Customer”


Digital Engagement is driving current IT Transformation Intuitive, Anytime, Anywhere

C U S TO M E R S E M P L O Y E E S P A R T N E R S

Systems of Record

Mobile Social Big Data Cloud


IT Transformation Challenges - IT Complexity

• EA, PPM and other IT teams are

working in silos. This causes expensive

errors and conflict.

• Data on the IT portfolio is poor and is

not integrated. An unreliable basis for

decision making.

• Overlaps and redundancy in IT support

are not recognized. This leads to

higher costs.

IT projects fail. Business is frustrated

and has no confidence in IT.

Demands Capabilities Strategies

Applications

Technologies

Budgets

Regulations

Roadmaps Projects

Risks

Devices

Skills


IT Transformation Challenges - Aligning to Business Strategy

• Business strategy is unknown and lacks

detail.

• Strategy is siloed resulting in conflicts.

• Business and IT are speaking different

languages - or just not speaking.

• Lack of transparent governance leads to

pet projects trumping projects that are

strategic or mandated.


IT Transformation Challenges - Getting the Budget To

tal IT

Budget

Transform the business

Time

Keep the lights on

The available budget for IT

transformation has been squeezed

from above and from below


Capabilities to meet IT Transformation Challenges


• Roadmaps

• Business strategies • Tactical demands

Highly Interconnected and Volatile IT Portfolios need

Synchronization

IT change

port fo l ios

Bus iness

s t rategy

port fo l ios

IT asset

port fo l ios

• Metrics on performance of IT support

• Business assessments of IT support

• Del ivery roadmaps • Costs & r isks

• Portfol io strategies • Tactical demands


Portfolio Management enables IT Transformation

C U S TO M E R S E M P L O Y E E S P A R T N E R S

Systems of Record

TRANSFORMATION Through Portfolio Management

Manage IT assets through an

integrated environment

Understand and manage

impact of change

Flexibility allows for

IT transformation


COLLABORATIVE

PROCESS ANALYSIS

PORTFOLIO

MANAGEMENT

PROCESS

AUTOMATION

AND INTEGRATION

INTELLIGENT

BUSINESS OPERATIONS

AND BIG DATA

ALFABET

IT Planning and

Portfolio Management

ALFABET

Enterprise

Architecture

Management

Portfolios Live

WEBMETHODS

Integration

WEBMETHODS

Business Process

Management

AgileApps Live

Integration Live*

APAMA

Intelligent Business

Operations

TERRACOTTA

In-Memory Data

Management

ARIS

Business Process

Analysis

ARIS

Governance, Risk

and Compliance

Management

Process Live

* General Availability of Integration Live is planned for second half of 2014


Establish an Integrated IT Portfolio Practice involving Business

Demands Capabilities

Applications

Technologies

Roadmaps Projects

Devices

Skills

Business

Architecture

Projects

Strategies

Budgets

Regulations

Risks

Finance & Risk

Transparency across applications, devices and technologies

Create the application portfolio

Understand ongoing transformation through running and future projects

Link to the existing program portfolio

Understand how existing application portfolio supports the business

Identify gaps

Map business context to the application portfolio

Add risk, regulatory and financial view to the integrated IT portfolio

Integrate finance & risk perspectives


Communicate using Business Structures

• Use strategies, operating models

and business capabilities.

• Associate them to demands,

projects and IT architecture.

• Use heat maps to take the

politics out of discussions.

• Prioritize using portfolio metrics.

• Implement transparent IT

governance workflows.

E.g., use business capabilities to align

project investments to business priorities


Optimize the IT Portfolio

• Establish and empower IT

portfolio management roles.

• Use natural (given) business

structures for the portfolio

breakdown.

• Set clear goals and monitor

them.

• Use dashboards to provide

stakeholder-specific overviews.


The Advantages of IT Portfolio Management

• Teams collaborating with a single view of IT

• Reliable data and informed decision making

• Successful transformation

• IT delivering real business value

$13M savings in

first year through

strategic

standardization!

$1.1M yearly

savings from

improved

productivity &

reduced scope!

Data accuracy up

to 95% with an

integrated

repository! $11M yearly

savings by

avoiding

development

projects!

Reduced

compliance effort

and better

governance!


through IT Portfolio Management

ALFABET - Delivering customer value


Payback in

6 MONTHS

SEVERAL MILLION DOLLARS SAVED

O P P O R T U N I T Y :

• Free up IT budget to directly support

‐ Aggressive international growth in the

private banking sector

‐ Higher cross-selling across divisions

R E S U L T S :

• Avoided development projects: Credit

Suisse saves $6 million annually

• Eliminated software costs: the

organization is saving $5 million

annually

Transforming Financial Services

R E S U L T:


ALFABET - Delivering customer value

They identif ied that

7% $13 million

of

appl ications

in the f irst year

could be

ret i red

and

they

saved

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ALFABET - Proven Leadership

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